Casino operator SkyCity reports reduced net profit, with an 11% decline in revenue and a 42% drop in underlying profit.
The company was in a trading halt to carry out a fully underwritten $240 million capital raising aimed at managing current trading conditions and meeting ongoing investment needs.
SkyCity chief executive Jason Walbridge said the company plans to sell about $200 million worth of assets over the next 12 to 18 months, which includes the Auckland car park concession and the 99 Albert Street office building.
The 12 months ended in June compared with the previous year include a net profit of $29.2 million versus a loss of $143.3 million, revenue of $852.2 million down from $928.5 million, and an underlying profit of $71.5 million compared to $123.2 million.
The net profit was impacted by a $27.3 million settlement related to South Australian casino duty, while the underlying profit reflects a $94 million writedown on the value of Adelaide Casino and a $130 million tax adjustment.
According to Walbridge, the company’s financial results “reflect the difficult operating environment we’ve navigated in FY25.”
“The delayed economic recovery in New Zealand has led to lower discretionary spending, impacting our business, and that has come through the same time as a period of elevated investment,” Walbridge said.
He also said that the overall market conditions are anticipated to remain challenging in the short term.