New Zealand’s SkyCity Entertainment Group reported a 44.2% year-on-year decline in EBITDA to NZ$120.5 million (US$71.5 million) and a 37.6% fall in net profit after tax to NZ$18.2 million (US$10.8 million) in the year ended 30 June 2026, impacted by weaker visitation, the rollout of mandatory carded play across its domestic casinos and higher costs linked to the opening of the New Zealand International Convention Centre (NZICC).
Releasing its FY26 financial results early this morning, SkyCity said the decline in profitability came despite a 6.5% increase in group-wide revenue to NZ$878.9 million (US$522 million), with lower gaming revenues somewhat offset by higher non-gaming revenues and specifically the contribution of NZICC.
Gaming revenue, the company explained, was down 5.9% due to carded play implementation – which also had a NZ$20 million to NZ$30 million (US$11.9 million to US$17.8 million) negative impact on EBITDA – weaker premium play and lower visitation in the June quarter amid the ongoing Middle East war.
Rising expenses included those related to NZICC’s operations, investment into online gaming ahead of New Zealand’s impending licensing process, higher labor and compliance costs and more. SkyCity also cited “accounting adjustments” related to its recently-announced “Building a Better Business Programme” (B3) – a multi-year remediation and transformation program at its Australian resort, SkyCity Adelaide.
The company recently agreed to pay AU$21 million (US$15.0 million) and revamp its leadership systems at the Adelaide property under an agreement signed with South Australia’s Liquor and Gambling Commissioner to resolve outstanding regulatory matters arising from an independent review into its suitability to hold a casino license for SkyCity Adelaide.
SkyCity CEO Jason Walbridge said, “In FY26, we implemented carded play across our New Zealand casinos, opened the NZICC, advanced our asset monetization, exceeded our cost-out targets, continued preparing for the regulated New Zealand online gambling market and settled in principle the outstanding major regulatory issues in Adelaide.
“Our underlying results met the guidance given in May, which recognized that consumer discretionary spending was weaker in the last quarter of the year.
“We are becoming a simpler, smarter, and more connected business, actioning further savings to deliver annualized benefits of NZ$30 million (US$17.8 million) in FY27 and growing to total benefits of NZ$70m (US$41.5 million) in FY28. This is a strategic response to our evolving operating environment and the future direction of our business, including the regulation of online gambling.”
The company’s FY26 performance included a 3.0% year-on-year decline in total revenue to NZ$498.6 million (US$296 million), including an 11.3% fall in gaming revenue to NZ$317.2 million (US$188 million). Visitation to the property fell from 2.0 million last year to 1.7 million in FY26.
SkyCity Adelaide generated total revenue of AU$212.1 million (US$151 million), flat year-on-year, with gaming revenue down 1.8% to AU$143.0 million (US$102 million), while the group’s two smaller New Zealand casinos in Hamilton and Queenstown saw total revenue fall very slightly to NZ$73.9 million (US$43.9 million). Gaming revenue was down 0.4% to NZ$63.9 million (US$37.9 million).
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