New Zealand’s SkyCity Entertainment Group fell to an NZ$33.6 million (US$20.8 million) loss in the 12 months to 20 June 2022, impacted by the closure of its flagship Auckland property for 107 days due to the COVID-19 pandemic.
Publishing its full year financial results early Thursday morning, SkyCity reported a 32.9% year-on-year decline in revenue to NZ$639 million (US$395 million) with EBITDA falling 69.1% to NZ$96.9 million (US$60 million). The results included a 32.3% decline in revenue at SkyCity Auckland to NZ$330.6 million (US$205 million), 23.5% decline at SkyCity Hamilton to NZ$56.2 million (US$35 million) and 16.9% decline at SkyCity Hamilton to NZ$10.2 million (US$6.3 million). The company’s Australian resort in Adelaide saw a more subdued 6.3% decline to AU$184.5 million (US$127 million).
Despite the challenging conditions, SkyCity said business had returned strongly following the easing of COVID-19 restrictions towards the back end of the financial year with record EGM activity in Auckland on weekends and holidays, and EBITDA consistent with pre-COVID levels in May and June. It also said its international business was EBITDA positive in 2H22 following the reopening of international borders, while the company’s online gaming arm saw revenue rise by 28.8% and EBITDA by 41.7% compared with FY21.
“Following the relaxation of operating restrictions during the final quarter of the 2022 financial year, SkyCity has seen the strong performance from its local gaming businesses in New Zealand continue into the 2023 financial year and improved performance from SkyCity Adelaide,” the company said.
“SkyCity’s tourism-related businesses continue to recover and are benefiting from positive domestic visitation, particularly during weekend and holiday periods.
“Provided there are no material changes to the current operational environment/settings and trading conditions, SkyCity sees a credible pathway for a return to pre COVID-19 earnings during FY23, underpinned by the ongoing recovery of local gaming, particularly in New Zealand, optimizing SkyCity Adelaide post expansion, the reopening of international borders and robust cost control to counteract inflationary pressure on costs.”
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