New Zealand’s SkyCity Entertainment Group has issued updated guidance around its FY26 financial performance, revising down its revenue and EBITDA expectations due to the impact of the Middle East conflict and rising fuel prices on customer discretionary spending.
The company explained that it is continuing to monitor the impact of current macro-economic conditions, which are affecting consumer discretionary spending across New Zealand and Australia.
“These conditions are creating uncertainty in the trading outlook for the remainder of FY26,” SkyCity said in a filing. “Since March 2026, trading and visitation have been affected – particularly by increases in fuel prices. These impacts have been most pronounced at SkyCity’s Auckland and Adelaide precincts. No significant impacts have yet been observed in Hamilton, Queenstown, or on existing New Zealand International Conference Centre (NZICC) bookings.”
While SkyCity has already implemented a range of cost-saving measures in response to New Zealand’s challenging economic environment – achieving more than NZ$10 million in cost saving in FY26 – the company revealed it would now initiate additional cost saving initiatives across its operations and corporate functions, and is engaging external advisors to support this process.
SkyCity said it now expects underlying EBITDA for FY26 to be in a range of NZ$180 million to NZ$190 million, down from previous guidance of between NZ$190 million and NZ$210 million, while reported EBITDA is expected to be between NZ$155 million to NZ$165 million.
The revised guidance, it added, is based on trading conditions experienced since the fuel price increases remaining broadly consistent for the remainder of FY26.
SkyCity also provided an update on its asset monetization program, announcing it has entered into a non-binding heads of agreement for the sale of an office building and other investment properties it owns in the Auckland CBD.
The company added that it is seeking expressions of interest from potential investors in acquiring The Grand Hotel at SkyCity Auckland.
“SkyCity will continue to consider strategic alignment, value realization, transaction sequencing and relevant external dependencies,” it explained.
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