SkyCity Entertainment Group reveals decline in revenue
SkyCity Entertainment Group has reported a weaker first-half result, with regulatory changes and higher operating costs weighing on earnings during what the company described as a transition period .
SkyCity’s report revealed group revenue of NZ$411.7 million for the six months to 31 December, representing a 2.4% decline on the prior corresponding period. Underlying EBITDA fell to NZ$85.5 million from NZ$119.5 million previously, while reported net profit after tax (NPAT) came in at NZ$12.1 million. Underlying NPAT was NZ$14.4 million, and no interim dividend will be paid .
SkyCity’s Entertainment Group’s CEO Jason Walbridge said the downturn was not unexpected given the current global climate and changing regulatory circumstances in New Zealand.
“The first half of FY26 reflected a planned period of operation transition, with the Group focussed on the second half of the year and ongoing work to support long-term operating objectives.
“We are undertaking a disciplined review of our operating model to ensure our cost structures reflect the current environment, while maintaining our commitment to compliance and customer experience.”
The company attributed the softer performance to a combination of operational and regulatory developments, including the introduction of mandatory carded play across its New Zealand casinos. The measure, implemented in July 2025, impacted gaming revenue as anticipated, alongside lower premium table volumes in Auckland and Adelaide and reduced VIP customer activity.
“Carded play was introduced to strengthen our host responsibility framework and support player welfare, Walbridge said.
“Six months on, we re seing some operational benefits from the additional customer data and visibility it provides.
“We have maintained strong customer satisfaction through implementation, and the deeper insights are supporting our longer-term omni-channel strategy.”
Higher costs also contributed to the earnings decline, driven by continued investment in anti-money laundering (AML) compliance, host responsibility programs, and technology upgrades. The period further included pre-opening expenses associated with the New Zealand International Convention Centre (NZICC), as well as increased investment in online operations .
The NZICC, which officially opened on 11 February 2026, is expected to play a central role in SkyCity’s longer-term growth strategy. Conferences and live events are already underway, although the first-half result captured testing, commissioning, and readiness costs linked to the launch .
SkyCity also confirmed progress on its asset monetisation program, targeting approximately NZ$500 million in proceeds by February 2027. The company is actively assessing options across its asset portfolio following the commencement of marketing for its 99 Albert Street office building .
Despite the first-half decline, SkyCity maintained its FY26 underlying EBITDA guidance, with earnings expected to be weighted toward the second half as cross-precinct benefits from the NZICC begin to flow through .
New Zealand gambling is set for a major shake-up in the coming months, with the introduction of regulated online casinos and a clamp down on offshore sports betting sites.
SkyCity indicated they would be participating in the licensing process, with it a natural extension of their land-based business in New Zealand.
