New Zealand’s SkyCity Entertainment Group has reported a 44.9% year-on-year increase in group-wide revenue to NZ$926.2 million (US$551 million) in the 12 months to 30 June 2023, buoyed by a “strong rebound and recovery in trading” following its first year free of COVID restrictions.
Publishing its results early Wednesday morning, SkyCity also revealed a 71.1% increase in EBITDA to NZ$165.9 million (US$98.7 million), although net profit after tax of NZ$8.0 million (US$4.8 million) was heavily impacted by recognition of an AU$45 million (US$28.9 million) provision related to AUSTRAC proceedings against SkyCity Adelaide and an AU$45.6 million (US$29.3 million) impairment of the Adelaide Casino license. Normalized net profit after tax was NZ$138.8 million (US$82.5 million).
The FY23 results included a 51% year-on-year increase in gaming revenue to NZ$759.4 million (US$452 million), led by electronic gaming machines which contributed 50% of main gaming floor revenues – up from 38% in FY19. This, the company said, demonstrates a “structural change” in the group’s earnings composition with EGM revenue up 27% on pre-COVID levels. Table games revenue of NZ$231 million (US$137 million) was 50% higher year-on-year but 11% below FY19.
Non-gaming revenue of NZ$207.4 million (US$123 million) was up 59% year-on-year.
Results at SkyCity’s flagship Auckland property led the charge, with gaming revenue up 70.8% to NZ$444.9 million (US$265 million) and non-gaming revenue by 76.8% to NZ$123.9 million (US$73.7 million).
SkyCity Adelaide reported a 22.2% increase in gaming revenue to AU$170.8 million (US$110 million) and 46.3% improvement in non-gaming to AU$65.4 million (US$42.0 million). SkyCity also saw solid increases at its casinos in Hamilton and Queenstown, New Zealand.
“We are pleased to have a full year of no interruptions which has meant SkyCity has rebounded strongly,” said CEO Michael Ahearne. “It is a real credit to our entire team who have responded fantastically to the challenges and the complexities of the last few years to deliver a year where we are now ahead of pre-COVID levels.
“The backbone of our business is our team who have been incredible this year – I want to acknowledge and thank them for their hard work.
“I also want to thank our loyal customers who have continued to enjoy our precincts and we are excited about what we can offer them in the coming year.”