SkyCity Entertainment Reports NZ$33.6 Million Loss For FY 2022
New Zealand’s SkyCity Entertainment Group has released its financial results for FY 2022 revealing a loss of NZ$33.6 million (€20.1 million).
According to the report, the loss is attributed to a 32.9% year-on-year decline in revenue to NZ$639 million (€399.3 million) as a result of the forced closure of its flagship Auckland property for a period of 107 days during the pandemic. EBITDA fell by a significant 69.1% to $96.9 million (€60.5 million).
This included a 32.3% decline in revenue at SkyCity Auckland to NZ$330.6 million (€206.5 million) as well as a 23.5% decline at SkyCity Hamilton to NZ$56.2 million (€35.1 million) and a 16.9% decline at SkyCity Queenstown to NZ$10.2 million (€6.3 million). SkyCity’s only Australian property in Adelaide saw a smaller decline of 6.3% to AU$184.5 million (€128.8 million).
However, the company did report that its overall international business was EBITDA positive in the second half of FY 2022 while the company’s iGaming division reported a rise of 28.8% in revenue while EBITDA grew by 41.7% year-on-year.
In a statement issued alongside the results the company said:
“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. 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.”