SkyCity Reports NZD 12.1m Profit, $406.5m Revenue, and $240m Capital Boost

Profit Growth Despite Revenue Pressure

SkyCity Entertainment Group Limited has reported a notable increase in profit for the six months ended 31 December 2025, with net earnings rising to NZD 12.1 million, nearly doubling the NZD 6.1 million recorded in the prior corresponding period. This improvement comes despite a modest decline in total revenue to NZD 406.5 million from NZD 420.8 million, primarily due to softer gaming revenues across its operations.

Capital Strengthening Through Equity Raise

During the period, SkyCity successfully completed a substantial $240 million equity raise, comprising an $81 million institutional placement and a $159 million pro rata entitlement offer. The capital injection was priced at $0.70 per share and fully subscribed, significantly bolstering the company’s balance sheet. This move also coincided with a reduction in US Private Placement notes by A$65.4 million, reflecting active management of its debt profile.

Adelaide Licence Impairment Review

Management undertook a rigorous impairment assessment of the SkyCity Adelaide casino licence, a critical intangible asset with a finite life. Despite some headwinds including increased capital expenditure and regulatory compliance costs, the review concluded no impairment was necessary. The valuation incorporated a ten-year financial model with conservative assumptions, indicating the licence’s recoverable amount remains intact, though sensitivities highlight the asset’s vulnerability to market and operational shifts.

Progress on NZICC and Regulatory Environment

The New Zealand International Convention Centre (NZICC) project achieved practical completion in November 2025, marking a significant milestone for SkyCity’s Auckland operations. While the project’s final cost allocations are still being finalised, the company has reclassified related deferred licence values to property, plant, and equipment accordingly. Meanwhile, SkyCity continues to navigate regulatory scrutiny, particularly concerning its Adelaide operations, with ongoing investigations but no provisions recognised for potential penalties or licence risks at this stage.

Outlook and Financial Position

SkyCity maintains a robust financial position with net assets of NZD 1.58 billion and positive operating cash flows. The company’s directors affirm the going concern status, supported by strong liquidity and compliance with debt covenants. However, the market capitalisation remains below net asset value, reflecting broader economic uncertainties and investor sentiment challenges. The company’s strategic focus will likely remain on operational efficiencies, regulatory engagement, and capital management as it moves into the second half of the fiscal year.