Key Highlights
- SkyCity <a href="https://comicvibe.com/maitri-takes-onam-advertising-from-mass-entertainment-to-cultural-storytelling/” title=”Maitri takes Onam advertising from mass entertainment to cultural storytelling”>Entertainment shares rose 11.00% to A$0.56 on 24 August 2026 following the release of FY26 full-year results.
- Underlying EBITDA fell 22.3% to $181.6 million and underlying NPAT dropped 46.9% to $38.0 million, though results met May 2026 guidance.
- The company exceeded its FY26 cost savings target, now targeting annualised benefits of $30 million in FY27 and $70 million in FY28.
- The Adelaide CBS review has been resolved in principle with a A$21 million fine, and the New Zealand International Convention Centre (NZICC) opened in February 2026.
SkyCity Entertainment Group Limited (ASX:SKC) shares rose 11.00%, gaining A$0.055 to trade at A$0.56 as of 2:46pm AEST on 24 August 2026. The move might followed the release of the company’s annual results for the year ended 30 June 2026 on 20 August 2026. Chief Executive Officer Jason Walbridge said the Business made progress in strengthening its core operations and meeting commitments made to shareholders at the time of the August 2025 Capital raise, while navigating a difficult operating environment, particularly in the final part of the financial year.
Key Financial Results
Group underlying Revenue came in at $822.7 million, down 0.3% on the prior period. Group underlying EBITDA fell 22.3% to $181.6 million, while underlying NPAT declined 46.9% to $38.0 million. On a reported basis, Group EBITDA fell 44.2% to $120.5 million and Group NPAT dropped 37.6% to $18.2 million. Net Debt stood at $591 million, with net debt to EBITDA at 3.1 times on a debt covenant basis.
Walbridge noted that underlying results met the guidance given in May 2026, which had recognised weaker consumer discretionary spending in the final quarter of the financial year. The company said it exceeded its cost savings target for FY26, and is now targeting realised benefits of $30 million in FY27, growing to total benefits of $70 million in FY28. Asset monetisation is expected to deliver $275 million to $300 million in gross proceeds.
Operational and Regulatory Developments
During the period, SkyCity completed the unconditional sale of the 99 Albert Street and Victoria Street Investment properties for $74.5 million, and signed a non-binding heads of agreement for the sale of the Grand Hotel. The New Zealand International Convention Centre (NZICC) opened on 11 February 2026, recording 100,000 visitations in FY26, with approximately 350,000 visitations in the pipeline for FY27.
Carded play and the SHOW by SkyCity program were rolled out across all New Zealand casinos, with the financial impact in line with guidance. The CBS review in Adelaide is being finalised with a A$21 million fine, and a strategic review of the Adelaide operations is set to commence in the first half of FY27. The company also confirmed it has submitted its Expression of Interest to participate in the licence auction for the regulated New Zealand online casino gambling market.
Revenue and Profitability Detail
Underlying Group revenue was affected by lower gaming revenue, driven by the introduction of carded play and reduced customer visitation and spending in the fourth quarter in Auckland and Adelaide, which was partially offset by higher non-gaming revenue including a contribution from the NZICC in the second half of the year. Underlying Group EBITDA of $181.6 million was within the company’s May 2026 guidance range of $180 million to $190 million, with second-half underlying EBITDA of $96.1 million including a negative impact of approximately $20 million in fourth-quarter EBITDA compared with the third quarter.
Reported Group EBITDA of $120.5 million was affected by a number of accounting adjustments and by costs associated with the B3 programme in Adelaide, totalling $23.5 million. Group Capital Expenditure was $95.4 million, below the guidance range of $100 million to $110 million, and included $32.9 million for the NZICC.
Conclusion
SkyCity Entertainment’s share price rise comes despite a full-year result marked by declines across underlying EBITDA, underlying NPAT, and reported profitability measures, with the company attributing much of the weakness to softer discretionary consumer spending and the impact of carded play changes in the final quarter. Management pointed to progress on cost-out initiatives, the resolution in principle of the Adelaide regulatory matter, and the opening of the NZICC as steps supporting the business through what it described as an evolving operating environment, with further savings targeted through FY27 and FY28.
