SkyCity Entertainment reported a return to profit for the year ending 30 June 2025, reversing a heavy loss in the prior year, and confirmed plans for a NZ 240 million equity raising. The move reflects a company managing mounting pressures while working to maintain momentum across its New Zealand and Australian operations.
Profit Recovery and Softer Underlying Performance
The casino operator swung back to a statutory profit of NZ 29.2 million, after recording a loss of NZ 143.3 million the previous year. The rebound came from stronger control of costs and a more stable operating base. Underlying net profit, however, dropped by around 42 percent compared to the prior year, showing that visitor activity and discretionary spend remain under strain.
EBITDA reached NZ 216.1 million, an increase of over 56 percent versus the year before. While this marks a clear improvement, it was still positioned at the lower end of the guidance range set by the company, underlining a cautious stance from management.
Equity Raise Details and Shareholder Response
The NZ 240 million equity raising will include an institutional placement of NZ 81 million and an entitlement offer of NZ 159 million. The price has been fixed at 70 New Zealand cents per share, representing a discount of about 30 percent relative to the last traded level. This strategy is designed to strengthen the balance sheet, improve financial flexibility, and support ongoing projects along with regulatory upgrades.
Support has been indicated by major shareholders, with Allan Gray, the largest investor, confirming participation. Company shares remain suspended during the announcement period and are expected to resume once the raising is finalized or if the company decides not to proceed.
Regulatory Costs and Future Pressures
SkyCity continues to face heavy compliance costs. Earlier this year, the Adelaide venue retained its licence following an independent review, although historic shortcomings in anti money laundering systems were identified. The operator has since introduced mandatory carded play in New Zealand properties and will extend the measure to Adelaide by December 2026.
Looking forward, SkyCity anticipates a challenging 2025 to 2026 period. It highlighted continuing economic softness in New Zealand, costs associated with regulatory upgrades, pre opening expenses for the New Zealand International Convention Centre, and new investment in preparation for regulated online casino activity. Underlying earnings are forecast between NZ 190 million and NZ 210 million. The company is also considering asset sales valued at about NZ 200 million, including a car park or an office building in Auckland, as part of its debt reduction plan.
