SkyCity Entertainment’s FY 2022 Revenue Dropped by 32.9%

New Zealand casino operator SkyCity Entertainment Group released today its financial results for the fiscal year 2022 revealing the impact of the near three-month-long closure of its flagship Auckland property.

Revenue Decrease Attributed to Property Closures

For the 12 months ended June 30, 2022, SkyCity Entertainment Group generated NZ$639 million ($397 million) in revenue to register a 32.9% decline as compared to the previous 12 months. The biggest decline in revenue was at SkyCity Auckland, 32.3% to NZ$96.9 million ($60 million) which remained shut for 107 days during the pandemic.

Revenues from the company’s other properties, SkyCity Hamilton and SkyCity Queenstown, declined by 23.5% and 16.9% to NZ$56.2 million ($35 million) and NZ$10.2 million ($6.3 million), respectively, while its Australian resort in Adelaide was the least impacted with a 6.3% decrease to AU$184.5 million ($128 million).

Despite the decrease in revenue, SkyCity Entertainment stated that its international business was EBITDA positive in the second half of FY 2022 following the reopening of international borders, while its online casino gaming division accounted for a 28.8% increase in revenue and EBITDA growth of 41.7%.

EBITDA for the twelve months came out at NZ$96.9 million ($60 million) to register a decrease of 69.1% as compared to FY 2021 but SkyCity stated that the business had returned strongly following the easing of the restrictions which allowed for record EGM activity in Auckland on weekends and holidays and EBITDA consistent with May and June levels.

“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,” the company said.

Recovery to Pre-Pandemic Levels in FY 2023

The company also believes that its tourism-related business will benefit from the increase in domestic visitation, especially during non-working days, and continue to recover to pre-pandemic levels.

SkyCity “sees a credible pathway” for the business to return to pre-pandemic levels in FY 2023, “provided that there are no material changes to the current operational environment and trading conditions.”

Outside of FY 2022, SkyCity became the latest casino operator to be subjected to an independent inquiry in Australia after the South Australia body regulating Liquor, Gambling & Lotteries announced a review of the state’s casino operations at the beginning of July.

At the end of the month, the independent inquiry appointed in South Australia to review operations at SkyCity Adelaide launched a period for public submissions for all interested parties ahead of the launch of the probe into the casino’s dealings.

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