SkyCity revises outlook as global headwinds slow consumer spending
SkyCity Entertainment Group has adjusted its forecasts and blamed global headwinds and weak operating conditions for a downgrade to its FY26 outlook, citing declining consumer confidence across its core markets.
SkyCity, which operates casino and entertainment venues across New Zealand and Australia, said rising fuel prices had weighed on visitation and discretionary spending since March, with the impact most evident at its flagship Auckland property and its Adelaide precinct.
Regional venues in Hamilton and Queenstown have so far remained more resilient, while forward bookings for the New Zealand International Convention Centre have not been materially affected.
The operator also faces ongoing uncertainty around the regulation of online gambling in New Zealand, with a potential licensed iGaming market expected to reshape the competitive landscape and place further pressure on land-based revenues.
In response to softer trading conditions, SkyCity confirmed it has exceeded its $10 million cost-saving target for FY26 and is now implementing additional efficiency measures with support from external advisors.
The company now expects underlying EBITDA of $180 million to $190 million, down from previous guidance of up to $210 million, with reported EBITDA also revised lower.
SKyCity said outside factors, like the USA’s war with Iran, had been factored into their revised figures, but it was impossible to predict how bad things might get.
“This guidance is based on trading conditions experienced since the fuel price increases remaining broadly consistent for the remainder of FY26,” SkyCity Entertainment’s statement read.
“Significant uncertainty exists on the breadth and duration of prevailing macroeconomic conditions , and further deterioration in these conditions could affect this guidance.”
SkyCity is expected to be heavily involved when the bidding process for the 15 iGaming licenses New Zealand will award is opened, and with the company already hosting a gambling website out of Malta, the framework is already in the background.
SkyCity had previously been reprimanded for allowing Kiwis to play at their online casino based out of Malta.
