SkyCity Profit Falls 37% as Mandatory Carded Play Costs It Up to NZ$30m of EBITDA

SkyCity Entertainment Group reported net profit after tax down 37.6% to NZ$18.2 million (US$10.8 million) for the year to 30 June 2026, with reported EBITDA falling 44.2% to NZ$120.5 million (US$71.5 million). On an underlying basis, which strips out one-off items, EBITDA was down 22.3%.

Revenue actually rose. Group turnover was up 6.5% to NZ$878.9 million (US$522 million), with lower gaming revenue partly offset by non-gaming income, particularly from the newly opened New Zealand International Convention Centre. Gaming revenue fell 5.9%.

The single largest identified drag was regulatory. The rollout of mandatory carded play across SkyCity's domestic casinos cost between NZ$20 million and NZ$30 million (US$11.9 million to US$17.8 million) of EBITDA on its own. Weaker premium play and lower visitation in the June quarter amid the ongoing Middle East war added to it. Costs rose on NZICC operations, investment in online gaming ahead of New Zealand's coming licensing process, and higher labour and compliance spend. SkyCity also cited accounting adjustments tied to its "Building a Better Business Programme", a multi-year remediation effort at SkyCity Adelaide.

The Adelaide property has been the group's regulatory problem. SkyCity recently agreed to pay AU$21 million (US$15.0 million) and overhaul its leadership systems under an agreement with South Australia's Liquor and Gambling Commissioner, resolving matters arising from an independent review of its suitability to hold the casino licence there.

Chief executive Jason Walbridge listed the year's work as implementing carded play, opening the NZICC, advancing asset monetisation, beating cost-out targets, preparing for the regulated New Zealand online market and settling the Adelaide issues in principle. "Our underlying results met the guidance given in May, which recognized that consumer discretionary spending was weaker in the last quarter of the year," he said, adding that the company is targeting annualised benefits of NZ$30 million (US$17.8 million) in FY27 rising to NZ$70 million (US$41.5 million).

The Middle East conflict that hit SkyCity's June quarter has been more severe elsewhere, with visitation to Ras Al Khaimah collapsing in the first half.