1 October we become SureStone CapitalSame team, same ABN. Our website and email addresses move to surestone.com.au.
Preparing video
Key points:
- SkyCity Entertainment Group reports lower profit and earnings amid weaker gaming revenue (ASX:SKC)
- Walbridge targets debt reduction via asset monetisation and a multi-year cost-out programme
- Adelaide faces an A$21m regulatory fine and a strategic review following a non-binding agreement
SkyCity Entertainment Group reports a 37% decline in net profit and a 22% fall in underlying earnings to NZ$181 million, which Jason Walbridge attributes to softer discretionary spending, regulatory changes and a challenging macro backdrop. Gaming revenue is said to be down around 6%, reflecting the full rollout of carded play across New Zealand casinos. Walbridge states that SkyCity is not providing FY27 guidance due to uncertainties, including geopolitical tensions and cost-of-living pressures. Walbridge outlines a transformation focus on asset monetisation to reduce debt to around two times earnings and align with BBB flat metrics. A cost-out programme is expected, in his view, to deliver NZ$30 million in realised benefits in FY27, rising to NZ$70 million in FY28, partly offset by investment ahead of New Zealand online gaming regulation. Early FY27 trading is described as similar to the fourth quarter of FY26, with lower discretionary spend expected to persist. In Adelaide, a non-binding agreement with the South Australian regulator includes an A$21 million fine and clearer operating parameters, prompting a strategic review of that business. Walbridge highlights strong growth in non-gaming revenue, supported by the New Zealand International Convention Centre, which has hosted more than 140 events in its first five months, driving hotel and food and beverage performance.
