SkyCity Entertainment Group Ltd
(NZSE:SKC)
NZ$
0.67
+0.060 (+9.92%)
Market Cap: 733.53 Mil
Enterprise Value: 1.37 Bil
PE Ratio: 36.94
PB Ratio: 0.47
GF Score: 50/100 
Full Year 2026 SkyCity Entertainment Group Limited Earnings Call Transcript
Aug 19, 2026 / 11:00PM GMT
Release Date Price:
NZ$0.59
(-3.28%)
Key Points
Positve
- SkyCity Entertainment Group Ltd (SKYZF) delivered on its FY26 earnings guidance of $181.6 million underlying EBITDA, despite a challenging macroeconomic environment.
- The asset monetization program is ahead of schedule, with expected gross proceeds of $275-$300 million by December 2026, including the unconditional sale of Auckland commercial properties for $74.5 million.
- The NZICC opened successfully in February, hosting 141 events with 100,000 visitations, and has a strong FY27 pipeline of 350,000 visitations across 350+ events, boosting non-gaming revenue.
- The company has identified a cost-out program targeting $30 million in realized benefits in FY27 and $70 million in FY28, with a clear line of sight on savings from organizational redesign and process improvements.
- SkyCity Entertainment Group Ltd (SKYZF) is well-positioned to enter New Zealand's regulated online casino market, which is estimated at $1.4 billion, with a disciplined investment approach and return hurdles.
- Adelaide's regulatory matters are nearing resolution with a non-binding agreement, including a fine, providing clarity for a strategic review and future operations.
- Operational free cash flow from New Zealand operations increased by $21.2 million to $121.7 million, driven by reduced capital expenditure.
- The company has strong liquidity with $84 million cash, $30 million term deposits, and undrawn bank facilities, even after accounting for the retail bond repayment.
- Hamilton and Queenstown properties performed well, with carded play impact less than expected and minimal impact from the Middle East conflict.
- Adelaide improved its market share in the South Australian EGM market to 8.3% and reduced its cost base by AUD10 million in H2 FY26.
Negative
- Underlying EBITDA declined 22.3% to $181.6 million, with reported EBITDA down 44.2% due to significant accounting adjustments, including a $52.2 million write-down on Adelaide and a $32.5 million tax asset derecognition.
- The Middle East conflict in March 2026 had an immediate and significant impact on consumer spending, causing an estimated $20 million EBITDA impact in Q4 FY26, which has continued into early FY27.
- Gaming revenue decreased 5.9% due to the introduction of carded play and lower premium play activity, with the financial impact in line with the $20-$30 million EBITDA guidance.
- The company is not providing FY27 earnings guidance due to heightened macroeconomic volatility and uncertainty, reflecting ongoing challenges.
- The cost-out program will result in a consultation process potentially impacting 200-250 employees, primarily in New Zealand corporate and back-office functions, leading to one-off costs in FY27.
- The NZICC is expected to achieve breakeven EBITDA in FY28, not FY27 as originally targeted, due to current economic conditions.
- Adelaide's carrying value was written down by AUD42.9 million due to revised forecasts, operating model changes, and increased capex, with the B3 program completion delayed to early FY28.
- The company has a significant tax bill expected on the Grand Hotel sale, with cash payment likely in FY28, reducing net proceeds.
- Debt-to-EBITDA ratio is at 3.1 times, slightly above the target of 3 times, due to lower Q4 earnings, and the company remains committed to reducing it below 2 times by end FY27.
- The online casino market entry involves uncertainty, including license auction costs and potential initial earnings drag, with no specific guidance on investment or market share.
Operator
Good day and thank you for standing by. Welcome to SkyCity Entertainment Group full year 2026 results conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I'd now like to hand the conference over to Mr. Jason Walbridge, Chief Executive Officer of SkyCity Entertainment Group. Please go ahead.
Jason Walbridge
SkyCity Entertainment Group Limited - Chief Executive Officer
Good morning, everyone. I'm Jason Walbridge, Chief Executive Officer of SkyCity Entertainment Group. Welcome to SkyCity's presentation of our full year results for the financial year 2026 we announced to the NZX and ASX this morning.
Before we begin, I'd like to acknowledge the Tangata Whenua of our SkyCity sites, NgÄti WhÄtua ÅrÄkei, Waikato Tainui, and NgÄi Tahu, and acknowledge the Kaurna people, the traditional custodians of the land in Adelaide.
With me today in Auckland is Blair Woodbury, our Chief Financial Officer; and Callum Mallett, our Chief Operating Officer. On the call today, we will be going through the
Already have an account? Log in
Get the full story
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
7-Day Free Trial · Cancel Anytime
Subscription fee may be tax deductible.
Excellent 
4.6 out of 5 
Trustpilot
Trustpilot
Survey
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
Follow Us
Disclaimers