New Zealand’s SkyCity Entertainment Group says it expects to return to profit for the financial year ending 30 June 2022 on the back of stronger than expected business volumes since the easing of COVID-19 restrictions.
Providing earnings guidance for FY22 on Tuesday morning, SkyCity said it expects to record group normalized EBITDA of NZ$135 million to NZ$140 million (US$85 million to US$88 million) and group normalized profit of NZ$3.5 million to NZ$7 million (US$2.2 million to US$4.4 million), although it is unable to provide guidance on statutory results.
The company explained that, “Following the recent relaxation of operating restrictions, SkyCity has seen strong performance from its local gaming businesses, particularly in New Zealand. SkyCity’s non-gaming businesses continue to recover, benefiting from positive domestic tourism – particularly during weekend and holiday periods and the reopening of international borders.”
SkyCity had previously fallen to a NZ$33.7 million (US$22.4 million) loss for the six months to 31 December 2021, representing a 143% decline from a profit of NZ$78.4 million (US$56.4 million) over the same period in 2020.
The group’s flagship casino, SkyCity Auckland, had been closed for a total of 107 days during the six months to 31 December 2021 due to COVID-19 restrictions, while its SkyCity Hamilton and SkyCity Queenstown properties were also closed at various times.