New Zealand‘s SkyCity Entertainment Group has reported net profit after tax of NZ$66.5 million, down 8.5% year-on-year on what the company has described as a “challenging economic climate.”
Releasing its interim results early Thursday morning, SkyCity revealed a 3.7% decline in revenue to NZ$445.2 million, with Group EBITDA down 5% to NZ$101 million. This was despite the company claiming an 8% increase in visitation to its flagship Auckland property.
“The challenging economic climate impacted our business this half, particularly in domestic electronic gaming machine revenues,” said CEO Michael Ahearne.
“Pleasingly our hospitality business and table games in Auckland have performed well, however we also see ongoing cost inflation in addition to our further investment in compliance activities.”
In a separate statement, SkyCity said it has appointed Callum Mallett as interim CEO, effective from 9 March 2024 when Ahearne is due to step aside. Mallett is currently SkyCity’s Chief Operating Officer New Zealand, a role he has held since February 2021.
Chairman Julian Cook will also provide executive support on a part-time fixed term basis with effect from 26 February 2024.
“Once a new Chief Executive Officer has commenced, it is expected that Mr Cook will cease this executive role,” SkyCity said.
“[Mallett] will remain in place whilst the SkyCity Board completes the recruitment process for a permanent Chief Executive Officer.”
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