New Zealand’s SkyCity Entertainment Group has cited the introduction of mandatory carded play across its New Zealand casinos and higher costs related to stricter AML requirements for a decline in its financial performance in the six months to 31 December 2025.
The company reported Thursday a 2.4% decline in group-wide revenue to NZ$411.7 million (US$246 million) – primarily on a fall in gaming revenue – as well as a 36.3% drop in reported EBITDA to NZ$71.1 million (US$42.4 million). Net profit after tax was NZ$12.1 million (US$7.2 million) and the Board of Directors has not recommended payment of a dividend.
The results included a 9.2% decline in gaming revenue at flagship SkyCity Auckland to NZ$164.6 million (US$98.2 million), somewhat offset by an 8.5% increase in non-gaming revenue to NZ$83.5 million (US$49.8 million). The company’s Hamilton and Queenstown casinos reported a combined 2.8% decline in gaming revenue to NZ$31.9 million (US$19.0 million) while in Australia, SkyCity Adelaide saw a 4.0% decline in gaming revenue to AU$73.7 million (US$44.0 million) but a 2.2% increase in non-gaming revenue to AU$36.4 million (US$21.7 million).
In its filing, SkyCity said its EBITDA performance for 1H26 “reflects the expected first-half earnings profile and the operational changes introduced during the period. Gaming revenue was affected by carded play in New Zealand, lower premium table volumes in Auckland and Adelaide, and VIP customer churn, partially offset by contributions from non-gaming businesses, including Food & Beverage and Hotels.
“Total costs were higher than the prior period in part due to ongoing investment in AML, host responsibility and technology, particularly in Adelaide.”
Despite the challenges brought on by mandatory carded play, SkyCity CEO Jason Walbridge said the company was also seeing some “operational benefits from the additional customer data and visibility it provides. We have maintained strong customer satisfaction through implementation and the deeper insights are supporting our longer-term omni-channel strategy.”
More broadly speaking, Walbridge added, “The first half of FY26 reflected a planned period of operational transition, with the Group focused on the second half of the year and ongoing work to support long-term operating objectives.
“We are undertaking a disciplined review of our operating model to ensure our cost structures reflect the current environment, while maintaining our commitment to compliance and customer experience.”
SkyCity has previously outlined its intention to bid for at least one of up to 15 online casino licenses to be issued this year under New Zealand’s new regulatory framework for online casinos, with legislation expected to take effect from 1 May and licensees permitted to operate from 1 December.
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