SkyCity Casino’s Financials Reflect Challenges
Profit Drops By Nearly 60 Percent
The group saw their revenue for the year decrease by 24.3% from their 2019 figure of NZ$1.02 billion to a revenue of NZ$779.5 million in 2020. This revenue drop caused net profit after tax to decrease significantly from 2019’s figure of NZ$164.6 million to NZ$66.3 million in 2020, representing a 59.7% decline. In addition, adjusted EBITDA for the group dropped by 37.7% from NZ$322.2 million in 2019 to NZ$200.7 million this year.
The decrease in revenue and profit has been put down to a number of challenges faced by the casino group during the course of the year, the most significant being the ongoing global health crisis and the fire in the New Zealand International Convention Centre.
Hope For The Future
Despite these grim figures, the SkyCity Entertainment Group says that they are in a good position to deal with future challenges. This is largely due to the New Zealand and Australian JobKeeper wage subsidy schemes that have helped to prevent property closures. In addition, the brand has seen a quick recovery of its domestic business following the reopening of many of its facilities in May of this year. The group’s various hotel, casino and restaurant facilities were forced to close on the 23rd of March 2020.
In addition, the SkyCity Entertainment Group was able to launch their online casino product earlier this year thanks to a collaboration with the Gaming Innovation Group. The SkyCity online casino has seen significant take up since its launch in March and is now trading profitably, although a slight reduction of activity was seen when land-based revenues were allowed to reopen. This however was countered by a further increase in revenue in August when Auckland underwent a second wave of closures. To date SkyCity’s online casino brand has registered over 35,000 new players and is looking forward to a regulated online gaming industry in the island nation.
In addition, the Auckland headquartered firm is still continuing its development work, which includes expansion of its SkyCity Adelaide offering and a number of hotel projects.