SKC - Sky City

[Muse]

Supposed to be a ? Mark on my post. $100 m impairment...will definitely impact the NPAT?

gotcha.

No I don't think it'll impact this year's final dividend.

The impairment is on the book value ascribed to the Adelaide license - it is totally non operational, non cash, and doesn't have any economic impact on the group. (It's worth questioning why the license (which are very long term AND exclusive) has been impaired and what that signals about the future. Interest rates are up but could also signal a slower return to pre covid tourism numbers as part of their modelling.)

The provision of A$45m I thought was a step in the right direction (& indeed think that would be a very good outcome for the business). Clearly Skycity was in the wrong and amends must be made and paid. The provision is again totally non cash and for the moment simply a guess - albeit the best guess that can be made by extrapolating the fine Crown paid in proportion to its contraventions and calculated pro rata to Skycity's offences. The ultimate cost may be higher or lower but we won't know until everything has gone through the system and the cash paid then.

But for this years result Skycity has reconfirmed its guidance that it'll do normalised EBITDA of $300-310m for the year ended 30 June 2023. So I don't see the FY23 final dividend at any particular risk.

Those are just my views. If you have access to broker research you could check that for alternative opinions or refresh the latest consensus estimates from marketscreener.

[winner69]

Still reckon NZ operations aren’t squeaky clean either …..same Board looking after both eh ……could be further troubles ahead.

Just my view

[Muse]

Perhaps. The whole industry has performed shamefully in my view and has been overdue for a clean up for sometime. No doubt negative sentiment could linger for a while yet.

[Leemsip]

[QUOTE=Fiordland Moose;1016310]gotcha.

No I don't think it'll impact this year's final dividend.


Might hit the divi, if they expect to have to pay out the fine soon. I would reduce the divi if I was in the driving seat....

[Snoopy]

Stil
l reckon NZ operations aren’t squeaky clean either …..same Board looking after both eh ……could be further troubles ahead.

Just my view

Just as well we have at least one ''perfectly squeaky clean' casino operator in NZ isn't it? Skyline Enterprises! What a relief there is no money laundering in the mainland!

SNOOPY

[Balance]

Perhaps. The whole industry has performed shamefully in my view and has been overdue for a clean up for sometime. No doubt negative sentiment could linger for a while yet.

Agree.

Which is why SKC trades on an Enterprise multiple of 6.75 times.

A lot of negatives and contingencies built into that multiple and sp.

SP imo should really trade under $2.00 until the Adelaide Casino AML & SA state tax issues are resolved.

Then, there's the carpark dispute with Macquarie and the never ending NZICC story.

[Muse]

Agree.

Which is why SKC trades on an Enterprise multiple of 6.75 times.

A lot of negatives and contingencies built into that multiple and sp.

SP imo should really trade under $2.00 until the Adelaide Casino AML & SA state tax issues are resolved.

Then, there's the carpark dispute with Macquarie and the never ending NZICC story.

A lot of overhang.

Whats the SA tax thing - did I miss something? NSW was about to hit casinos with a new tax but backed down a few days ago. There was an overhang/fear in the mkt that other states could follow but that seems less likely now unless I’ve missed something.

[Balance]

A lot of overhang.

Whats the SA tax thing - did I miss something? NSW was about to hit casinos with a new tax but backed down a few days ago. There was an overhang/fear in the mkt that other states could follow but that seems less likely now unless I’ve missed something.

NSW tax still going ahead but at a reduced rate - basically to what Star can afford, saving the 3,000 jobs employed by Star Group there.

https://www.abc.net.au/news/2023-08-11/nsw-government-overhauls-star-casino-tax-changes-saves-jobs/102717236

[X-men]

Make $929.2 m revenue...NPAT is just around $8m

Poor SKC is no better than the greasy company RBD?

[Muse]

Normalised NPAT of $139m. lots of one offs and noise in the result (accts always a bit messy in my view). Includes a $6m upward adjustment for theoretical win rate (last yr was a negative 2.7m). Semi useful information but I don't accept it as a valid normalisation. anyway underlying result better than consensus of $109m. and there was the 6c fully imputed dividend I expected.

Guidance for FY24 a tad underwhelming.

[X-men]

Not too shabby if U read through...modest growth fy 24

[bull....]

no contribution from horizon till 25 or 26 ? and who knows how the gambling will go as the belt tightening in NZ deepens. lotteries do well in recession as small bet for big payday sounds worth it when your struggling but does the same apply to casino's ?

[X-men]

When U are addicted to gambling....bro...U will sell your wife b kids...lol

[bull....]

met a few gambling addicts in the day when i used to go horing with the boys

[ratkin]

What a ridiculous report on One news, tried to make it look like sky had made a billion in profit. Just trying to stir up anti gambling rhetoric.

[Balance]

no contribution from horizon till 25 or 26 ? and who knows how the gambling will go as the belt tightening in NZ deepens. lotteries do well in recession as small bet for big payday sounds worth it when your struggling but does the same apply to casino's ?

It's like RBD - good times people eat KFC and gamble, bad times they eat even more KFC and gamble more.

[Ggcc]

What a ridiculous report on One news, tried to make it look like sky had made a billion in profit. Just trying to stir up anti gambling rhetoric.
Three news was very similar. Sky made a billion dollars……… you meant turnover. Later the reporter indicated turnover. Honestly they just read off cue cards

[X-men]

The result included $100m loss/ impairment for Adelaide Skycity....

That means the fund is there to pay any fines within that $100m ....won't effect fy24 result? Can someone care to explain?

I just feel there is a good value on this stock....seems reached the button and in recovery mode...

[Sideshow Bob]

whooooooaaaaaaaaaaa!! :ohmy:

https://www.nzx.com/announcements/417565

APPLICATION TO TEMPORARILY SUSPEND NEW ZEALAND CASINO OPERATOR’S LICENCE FOLLOWING COMPLAINT BY A CUSTOMER

SkyCity Entertainment Group Limited (SkyCity) has been informed by the Department of Internal Affairs (Department) that the Secretary of the Department (Secretary) is making an application to the Gambling Commission (Commission) to temporarily suspend SkyCity Casino Management Limited’s casino operator’s licence for a period “in the range of 10 days”.

SkyCity Casino Management Limited (SCML), a subsidiary of SkyCity, is the holder of the casino operator’s licence for the SkyCity Auckland, SkyCity Hamilton and SkyCity Queenstown casinos in New Zealand. The Commission will now consider whether to make an order to suspend SCML’s casino operator’s licence and, if so, the duration of any such suspension. A decision may not be forthcoming for a number of months.

The application has been made pursuant to section 144(a) of the New Zealand Gambling Act 2003 (Act) and follows a complaint made in February 2022 to the Department by a former customer who gambled at the SkyCity Auckland casino over the period from August 2017 to February 2021. The Secretary states in the application that SCML did not comply with requirements in its SkyCity Auckland Host Responsibility Programme relating to detection of incidences of continuous play by the customer.

SkyCity will fully cooperate with the Secretary in relation to the application and process. Given that the application is before the Commission it would be inappropriate for SkyCity to comment further on the application and allegations at this stage.

Under section 144(a) of the Act, the Secretary may apply to the Commission for an order to suspend a casino licence if the Secretary is satisfied that the licence holder is breaching or has breached the Act or a condition of the casino licence or minimum operating standards. The Commission must then decide whether or not to grant the order sought by the Secretary after following the procedure set out in section 145 of the Act, including considering written submissions and (if applicable) convening a hearing – a process which could take some months to conclude. Should the Commission determine to grant an order to suspend SCML’s casino operator's licence, this would not impact SkyCity's non-gaming operations, including its hotels and restaurants.

SkyCity is committed to maintaining the highest standards of host responsibility best practice, with priority given to minimising the impacts associated with problem gambling as an area of primary focus. SkyCity has made, and continues to make, significant investment and enhancements in its host responsibility controls, technology and resources.

[Leemsip]

https://www.nzx.com/announcements/417565

SkyCity Entertainment Group Limited (SkyCity) has been informed by the Department of Internal Affairs (Department) that the Secretary of the Department (Secretary) is making an application to the Gambling Commission (Commission) to temporarily suspend SkyCity Casino Management Limited’s casino operator’s licence for a period “in the range of 10 days”. SkyCity Casino Management Limited (SCML), a subsidiary of SkyCity, is the holder of the casino operator’s licence for the SkyCity Auckland, SkyCity Hamilton and SkyCity Queenstown casinos in New Zealand. The Commission will now consider whether to make an order to suspend SCML’s casino operator’s licence and, if so, the duration of any such suspension. A decision may not be forthcoming for a number of months.

Not sure if this is a big deal or just a regular thing.....

SKC getting pumped at both ends of the tasman at the mo. Share price is holding up decently.....

I dont hold at the mo. Looking to build a stake at some point though.

Any thoughts people?

[Leemsip]

Share market is supposed to hate uncertainty. We must be at peak uncertainty with SKC today I reckon.
I dont have a good feel for this stuff but, possible suspension from casino in NZ, $100m fine in Oz, recession coming, china (main source of international gamblers) cratering.

Might see $2 this week?

[winner69]

Just another example of the toxic culture at Sky City. Rotten to the core.

Only matter of time what they caught for in Australia gets out into the open.

Love how they always ‘fully cooperate’ and how they are ‘fully committed to maintaining the highest standards’ ……..amazing they can say that without choking

[Entrep]

https://media.giphy.com/media/xUStFKHmuFPYk/giphy.gif

[winner69]

https://media.giphy.com/media/xUStFKHmuFPYk/giphy.gif

Yes, no different from supermarkets putting screens over their booze for a few days after they got caught for selling booze to an underage drinker

But a casino is far more dramatic eh

[shareman]

WTF !!!! More problems

[winner69]

Down 10% in early trade …panic stricken punters?

[shareman]

It'll fall further imho

[shareman]

It's been on a downward trend for a long time, only a fool would pick a bottom here

[Leemsip]

It's been on a downward trend for a long time, only a fool would pick a bottom here

Seems to be holding at $2.10. Thought it might get smashed lower.

This is a NZ monopoly. Should be an amazing little earner...... they bounce from tragedy to tragedy though...

[Leemsip]

Question is will the commission actually decide they have had enough and put some pain on. My pick is yes.
So more bad news to come?

[Waltzing]

They will probably line up the best legal team they can find ....
if change of government coming ACT will insist they limit internal affairs operations and knee cap the secretary...

like in the racing industry there is alway a fuss and then the knight hoods continue...

Imagine how many IWI would love to own that license...

You watch but they will fight it and it they continue to then a bargain will emerge as tourism picks up to full steam in the next 5 to 10 years...

Big legal and major expenses might be required in the mean time... Suspend DIV entirely possible but doubt it...

This customer wants some money back... internal affairs has been infiltrated by IWI and they want the license...

Someone at SKC board and C suite will have to walk the plank for this one and the Aussie one ...

Some Big Bucks changing hands in fines coming ...

Imagine "I was allowed to gamble for to long and now i want to my money back"

Thats like saying the stock market made me do it ...

These are the same government departments that waste tax payer money all over the place and steal billions of dollars of rate payer assets...

Pot calling the kettle black ...

[alokdhir]

Just another example of the toxic culture at Sky City. Rotten to the core.

Only matter of time what they caught for in Australia gets out into the open.

Love how they always ‘fully cooperate’ and how they are ‘fully committed to maintaining the highest standards’ ……..amazing they can say that without choking

Fully agree with your thoughts ...Though I am very surprised that Department recommending such action to Gambling Commission ....Normally all complaints by patrons which are many as SKC operates and behaves like a monopoly , are brushed under the carpet ...Department almost always sides with SKC .

This must be very serious matter or patron concerned very well connected ...Host responsibility is just the punching bag here ...something else cooking .

[Waltzing]

".something else cooking"

this one is pressure from players who want that license...

could end up before the courts ...

skc should halt trading as you could generate some inter holding company transactions here and have a nice paper loss ...

[winner69]

Fully agree with your thoughts ...Though I am very surprised that Department recommending such action to Gambling Commission ....Normally all complaints by patrons which are many as SKC operates and behaves like a monopoly , are brushed under the carpet ...Department almost always sides with SKC .

This must be very serious matter or patron concerned very well connected ...Host responsibility is just the punching bag here ...something else cooking .

I’d hazard a guess that oversight of casino related activities in NZ by the Govt depts is pretty slack at best

[Waltzing]

Will SKC sue the department when its all done and dusted?

Salt management questions the motives of the DIA...

SKC brings in high tech software to track customers in the casino's ...

This has a lot of moving parts ..

https://www.nzherald.co.nz/business/skycitys-nz-casino-licences-could-be-suspended-if-new-internal-affairs-bid-succeeds/VERRAD2J7NBQJJWH5RKAN4GDKU/

[winner69]

Will SKC sue the department when its all done and dusted?

Salt management questions the motives of the DIA...

SKC brings in high tech software to track customers in the casino's ...

This has a lot of moving parts ..

https://www.nzherald.co.nz/business/skycitys-nz-casino-licences-could-be-suspended-if-new-internal-affairs-bid-succeeds/VERRAD2J7NBQJJWH5RKAN4GDKU/

…and Matt from Salt also said ‘…. and are there other issues that will come out in the wash?”

Where’s there smoke there’s fire they say

[Muse]

All starting to look rather uninvestable isnt it

[Ggcc]

I must admit I don't know the full story of this, but I still remember an acquaintance I have went to Skycity and was in the I believe "black club". Skycity had to ban him apparently because of the amount of time he spent on the machines and when they told him to hop off he abused them. At the end SKC banned him for 6 months or there about. I had to listen to him tell me that they were wrong and they judged him badly. The amount of people that SKC have to deal with (the EGOs) is difficult and I feel people need to have some personal responsibility instead of blaming those that allow them to gamble. Why not blame KFC for your heart problem, or that you had not lost weight because your personal trainer did not get you out of bed.

[winner69]

Share price recovered from 150 when covid hit so current 195 not too bad

But then again the share price was about that back at the turn of century

Just as well they generate zillions in cash from their dens of iniquity and pay a decent divie.

[alokdhir]

Share price recovered from 150 when covid hit so current 195 not too bad

But then again the share price was about that back at the turn of century

Just as well they generate zillions in cash from their dens of iniquity and pay a decent divie.

Nothing good comes out of a " Sinful Business " ...All vices lead to sorrow only :D

[winner69]

Nothing good comes out of a " Sinful Business " ...All vices lead to sorrow only :D

Confess that in the past I’ve had SKC ……..but only traded the ticker code SKC on price and blocked out any thoughts / knowledge of what they do.

[alokdhir]

Confess that in the past I’ve had SKC ……..but only traded the ticker code SKC on price and blocked out any thoughts / knowledge of what they do.

Their dividend shud feel like " Blood Diamonds " ...lol ...just extreme thoughts ...all can choose from where one gets next meal buddy ...so all good !!

[Fortunecookie]

Complainant was a regular over a 4 year period.

So when he got home from a fruitless night/day of gambling, he doesn't think to say enough is enough. Or think he needs to approach Skycity to ask them to ban him.
I had a friend who was a gambling addict, he did exactly that. Asked them to ban him. The complainant had every opportunity to stop himself.

I think it's oversold. At worst it is a one off event. It's a debatable complaint and hardly something to lose a license over.

Correction: when I said one off event, I meant incurring a 10 day suspension.

Disc: I am not a holder.

[shareman]

Happens all the time, the regulator is being overly cautious here

[alokdhir]

As I mentioned before that this kind of complaints against Casino come dime a dozen but DIA does nothing ...why suddenly they ask for such extreme punishment for a Host responsibility lapse ...which happens at least 100 times a day ...thats what got me more worried ...thats why I still think ...there is something more which can be revealed latter

[Waltzing]

Winner() its no dif to Horse racing or the Doggies...

Its all gambling ... now lets hope there is a massive fine in NZ and also one in AUS.. stock gets hit even worse and then since nothing is happening on these markets there is an OPPO to make some serious money..

[winner69]

‘Suspension’ or putting covers over the booze so they can’t sell it for a week is quite common in supermarkets …..but then regulators are pretty useless regulators so they take the risk and continue selling to the under age.

[winner69]

Winner() its no dif to Horse racing or the Doggies...

Its all gambling ... now lets hope there is a massive fine in NZ and also one in AUS.. stock gets hit even worse and then since nothing is happening on these markets there is an OPPO to make some serious money..

May as well include the stock market …just a place for gamblers and punters to play … but some say it’s gets some decency / legitimacy by describing it as ‘investing’

[X-men]

Yeah...not to mention the share market....look at MFB, PEB...RYM...ATM

A broker recommend the client.....when SP so high..now initial capital under water

[Fortunecookie]

Just received an email from TAB advising that this week (September 4-10) is Gambling Harm Awareness Week.

What better way to raise awareness than to threatened skycity with a suspension.

Feels like someone is trying to justify their payroll.

[Azz]

Just received an email from TAB advising that this week (September 4-10) is Gambling Harm Awareness Week.

That's actually a form of advertising, that email. A lot of people will see it and be reminded to put a bet on.

[Waltzing]

Tab turn over could be up this week ....

own goal for DIA....

[ratkin]

How much would Sky be worth without its gambling division?

[troyvdh]

Gee what a shame...so sad...what a surprise.
BTW...What would be the profile of the typical punter.
Are shareholders comfortable about making money from the most vulnerable.

[Waltzing]

Be interesting to know if there was ministerial advise sort by DIA..

[Ggcc]

Gee what a shame...so sad...what a surprise.
BTW...What would be the profile of the typical punter.
Are shareholders comfortable about making money from the most vulnerable.
In someway I look at the whole thing about KiwiSaver or people won’t invest in this or that. Give me the maximum results I can get for my future.

It is not that I don’t care about people, it is that whatever I choose to invest in makes little to no difference to the organisation I have invested in. It is like saying I won’t invest in restaurant brands because it makes people fat. How you choose to spend your money is none of my business and I can’t change you if you wish to gamble it is up to you to want to change. I haven’t invested yet but it’s on my watch list

[kiwical]

Gee what a shame...so sad...what a surprise.
BTW...What would be the profile of the typical punter.
Are shareholders comfortable about making money from the most vulnerable. Yes there is a a whole "thing" here. Ethical investments vs investments for your own gain. So where are you going to draw that line? Do you invest in oil and gas? Mining? Clothing or other producers with third world labour? Junk food companies? Arms and militia? Plastic producers? Farming? I bet you could probably find someone who has an ethical issue with just about every company listed.....

[troyvdh]

Ok..I'm not a raging socialist..however I believe it's plainly obvious that a significant percentage of our population ...are well not well equipped...to deal with so many issues..folk on this site find normal..mundane..I'm not sure what the answer is...but one thing is certain...there will be consequences.

[ratkin]

Gee what a shame...so sad...what a surprise.
BTW...What would be the profile of the typical punter.
Are shareholders comfortable about making money from the most vulnerable.

These sort of comments very annoying, people getting on their high horse because they don't approve of what people choose t invest in.
Every time you get in your car you create pollution which will hurt the most vulnerable. Where does it end?

This low life that complained was happy to sit there for hours, yet is now blaming someone else for his own problems, and the woke brigade try to punish one of our prominent entertainment companies, because it trendy to be anti gambling.

[Fortunecookie]

Yes there is a a whole "thing" here. Ethical investments vs investments for your own gain. So where are you going to draw that line? Do you invest in oil and gas? Mining? Clothing or other producers with third world labour? Junk food companies? Arms and militia? Plastic producers? Farming? I bet you could probably find someone who has an ethical issue with just about every company listed.....

Well said. Totally concur.

[troyvdh]

Low lifes you detest obviously...How does it end....? NZ has one of highest prison incarceration rates in the world....at 3k each a week.
Mate...Where does it end...?
You like me pay for it.

[Fortunecookie]

Low lifes you detest obviously...How does it end....? NZ has one of highest prison incarceration rates in the world....at 3k each a week.
Mate...Where does it end...?
You like me pay for it.

Sorry I don't make the connection.
Is gambling connected to prison life?.

It has been noted that a high percentage of prisoners have learning difficulties i.e dyslexia. Perhaps we are not addressing the underlying issue.

[moimoi]

So 1 person complains to the DIA that the casino allowed them to gamble for long periods. The Secretary then believes thats enough to shut the place down. OTT.?

Presumably one of the possible reasons why the complainant is a "former customer" is as a result of an effective implementation of SKY's "Host Responsibility Programme".ie: the punter was banned.

This has a faint scent of someone being in lala land. Can costs of the action be sheeted back home to the complainant in the event of a vextatious ruling...?

This reminds of a classic situation some 25 odd years back when a punter in his pjamas living with his elderly Mum in a 2 bedroom brick n tile unit in Mt Roskill launched an unconditional takeover bid for RBD. The Company felt obliged to announce it to the market in compliance with the continuous dislcosure reg's but upon investigation it became clear the bloke didn't have sufficient finance lined up for the bid other than his plastic piggy bank.

Oversold here imo.

GLTA.

[X-men]

The chance of ex gamblers forthcoming are pretty high...once the news out...all the people will join the force, claiming the bucks that they lost at the casino.

Just like prince Andrew sex scandal....one news out .... literally many women came forward n claim the scandal real just to get $$$

The same with WINZ clients...they could claim the supermarket failed to stop them spent thier benefits money on buying alcohol n ciggies

[nztx]

Be interesting to know if there was ministerial advise sort by DIA..


Labour might still be cleaning up the last Attorney General Car Crash & trying to settle a new posturing Limpet in for a short stretch ;)

Guess that might be the end of the next half's SKC dividend, until after the dust clears

[ratkin]

The chance of ex gamblers forthcoming are pretty high...once the news out...all the people will join the force, claiming the bucks that they lost at the casino.

Just like prince Andrew sex scandal....one news out .... literally many women came forward n claim the scandal real just to get $$$

The same with WINZ clients...they could claim the supermarket failed to stop them spent thier benefits money on buying alcohol n ciggies

Don’t forget the OAPs blaming the electric companies because they can’t afford to heat their house

[Patrick11]

Not a shareholder
I believe in personal responsibility. But know people can form addictions that should not spoil it for the majority Skycity ask you questions before you open a online account.

[bull....]

brought some yesterday , complaint still could end up as a smack on the hand once gone thru the process and anyway 10 days of suspension is the worst case.
at the end of the day gambling has been around since adam and eve so i dont think sky city is going away

[Daytr]

My take is that this is far more serious than how they manage gambling addicts. The article refers to money laundering.
The Sydney casino years ago was done for not reporting suspicious gambling where one of the biggest drug gangs was regularly laundering $20M at a time and it not being reported. Like banks Casino's are required to report any cash transaction over $10K or what they just deem suspicious.

https://www.nzherald.co.nz/business/the-front-page-skycity-bombshell-explained-as-gambling-giant-faces-troubles-in-nz-and-aus/O4GDJ3KSGRCXPHIHVSKPVAGEWQ/?lid=csdqp4ku614y

[bull....]

My take is that this is far more serious than how they manage gambling addicts. The article refers to money laundering.
The Sydney casino years ago was done for not reporting suspicious gambling where one of the biggest drug gangs was regularly laundering $20M at a time and it not being reported. Like banks Casino's are required to report any cash transaction over $10K or what they just deem suspicious.

https://www.nzherald.co.nz/business/the-front-page-skycity-bombshell-explained-as-gambling-giant-faces-troubles-in-nz-and-aus/O4GDJ3KSGRCXPHIHVSKPVAGEWQ/?lid=csdqp4ku614y

so if they have to report any cash transaction over 10k then nothing to worry about. they were following the law

anyway the announcement made for some good volumes for people who wanted to get in for the div ex 7/9 and remember max fine if i mean if implemented is roughly 10m if you go of reports they make a mil a day

[winner69]

Seems Sky got caught out in 2020 but bought their way out of being suspended (ie a settlement) ….and didn’t tell shareholders they had breached thevregulations

Article mentions changes to top management after that incident though not specifically linked

https://www.nbr.co.nz/investment/dia-discloses-skycity-settlement-in-2020/

[Patrick11]

I go to Skycity Auckland two or three times a year mainly playing roulette and/or blackjack.

[bull....]

Seems Sky got caught out in 2020 but bought their way out of being suspended (ie a settlement) ….and didn’t tell shareholders they had breached thevregulations

Article mentions changes to top management after that incident though not specifically linked

https://www.nbr.co.nz/investment/dia-discloses-skycity-settlement-in-2020/

exactly wouldnt surprise me if they do a negotiated settlement again if they are proven in the wrong

[Daytr]

so if they have to report any cash transaction over 10k then nothing to worry about. they were following the law

anyway the announcement made for some good volumes for people who wanted to get in for the div ex 7/9 and remember max fine if i mean if implemented is roughly 10m if you go of reports they make a mil a day

My point is they may not have been reporting suspicious transactions at the Adelaide Casino.

https://indaily.com.au/news/2023/05/29/questions-over-stalled-skycity-inquiry-amid-money-laundering-case/

[bull....]

My point is they may not have been reporting suspicious transactions at the Adelaide Casino.

https://indaily.com.au/news/2023/05/29/questions-over-stalled-skycity-inquiry-amid-money-laundering-case/

the 50m provision in the accounts means all this is already factored in the price probably.

anyway im feeling very hungry having watched the skc price intently from my screens so i need to go buy a fatty kfc family pack for lunch , maybe wash it down with some of there watered down soft drink

[Azz]

anyway im feeling very hungry having watched the skc price intently from my screens so i need to go buy a fatty kfc family pack for lunch , maybe wash it down with some of there watered down soft drink

The fat's fine; it's the carbs you wanna watch.

[Waltzing]

"exactly wouldnt surprise me if they do a negotiated settlement again if they are proven in the wrong"

No doubt about it they wont get away without money even if they arnt proven in the wrong. Money has to change hands unless SKC takes it to the courts...

There are a lot of organisations that want that license to print money and who knows how deep the conspiracy goes on this one.....

Did the minister encourage this action? Be interesting to know when the minister became aware of the investigation and was it encouraged and pushed along.

[bull....]

The fat's fine; it's the carbs you wanna watch.

no worries burn the calories off playing roulette. might need to be there quite a few hours though to burn my family pack off though

[X-men]

https://www.newshub.co.nz/home/new-zealand/2023/09/former-skycity-gambler-says-up-to-eight-continuous-playing-hours-without-interruption-from-staff-was-regular.html

[Azz]

My take is that this is far more serious than how they manage gambling addicts. The article refers to money laundering.
The Sydney casino years ago was done for not reporting suspicious gambling where one of the biggest drug gangs was regularly laundering $20M at a time and it not being reported. Like banks Casino's are required to report any cash transaction over $10K or what they just deem suspicious.

More BS from you. Evidence? for what's happening NOW in New Zealand? (ie, how is what you're on about linked to their gambling license here?)

[Azz]

My point is they may not have been reporting suspicious transactions at the Adelaide Casino.

Your "point" was about Sydney. Now it's about Adelaide?

[X-men]

https://www.nzherald.co.nz/nz/man-claiming-to-be-armed-takes-off-with-cash-from-skycity-auckland-casino/6OVESI62SFB77EW6OEPXY7IGAA/

Mother hell....bad news after another

[winner69]

https://www.nzherald.co.nz/nz/man-claiming-to-be-armed-takes-off-with-cash-from-skycity-auckland-casino/6OVESI62SFB77EW6OEPXY7IGAA/

Mother hell....bad news after another

Suspect known to authorities says Chloe …probably a punter who was allowed to play for too long just trying to get his losses back

[Ggcc]

https://fortune.com/2023/09/13/mgm-caesars-hacked-ransomware/

Not anything that may affect Skycity right now, but it’s a question of when will it. MGM casino apparently losing up to 30 million a day in lost revenue. SKC is small fry in comparison.

[shareman]

SKC will keep falling until $1.00, theres just too much bad sentiment about it and from a ESG perspective,

Fund managers won't go near it, it's not cool

[Norwest]

SKC will keep falling until $1.00, theres just too much bad sentiment about it and from a ESG perspective
Would love to here how you came up with that magical figure... why don't you endow the rest of us with your magical analysis of one whole, round NZ dollar price estimate rather than just blatant downramping.



Fund managers won't go near it, it's not cool

Stop spreading disinformation

International Fund Managers have a massive stake in SKC, e.g. Citicorp, JP Morgan, HSBC, BNP Paribas etc.
NZ Fund Managers do too, e.g. ANZ, Accident Compensation Corporation, Forsyth Barr etc

[shareman]

End of the day, why wouldn't it be worth $1? Why's it worth anything ?

It's a casino without a license !

I think you're in for some more negative shocks my friend

[Norwest]

shareman you are once again factually incorrect. Why don't you try adding some actual intellect to the thread rather than lies, lies and more blatant lies?



It's a casino without a license !


Here are the five casino licenses that Skycity owns:

1. Auckland Casino - valid until 30th June 2048, with renewal until 2063

2. Hamilton Casino - valid until 18 September 2027, with renewal until 2042

3. Queenstown Casino - valid until 6 December 2025, with renewal until 2040

4. Queenstown Wharf Casino - valid until 11 September 2024, with renewal until 2039

5. Adelaide Casino - valid until 20th June 2085

[shareman]

Read the news, 4 of those casinos are under threat of losing their license,

If anything this is a body blow to the confidence of SKC which is my point,

[Rawz]

SKC is trading under book value now. Pretty good value here

[winner69]

SKC is trading under book value now. Pretty good value here

About 30% PFI that book value is licenses ….hope they hold their value eh

[shareman]

Nah, it'll be $1.00 a share in no time, watch it drop, don't catch a falling knife

[Sideshow Bob]

https://www.nzx.com/announcements/419988

CEO jumping ship....

[winner69]

https://www.nzx.com/announcements/419988

CEO jumping ship....



…….before more **** hits the fan?

[Sideshow Bob]

…….before more **** hits the fan?

He doesn't leave until end of March next year so still plenty of time to for more brown stuff to hit the rotating thingee!!

[Balance]

https://www.nzx.com/announcements/419988

CEO jumping ship....

Or pushed?

The regulatory & compliance breaches happened under his watch.

Personally surprised he did not leave earlier myself.

[Filthy]

Or pushed?

maybe part of the back-room settlement process which is surely going on?

....change the guard for an improved sentence

[Sideshow Bob]

Al buying more.....

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/SKC/420752/406110.pdf

[Rawz]

Al buying more.....

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/SKC/420752/406110.pdf

Allan loves to gamble. But only after a hard days work doing renovations using products bought from Placemakers, all the while wearing his neat Kathmandu jacket

[Balance]

Allan loves to gamble. But only after a hard days work doing renovations using products bought from Placemakers, all the while wearing his neat Kathmandu jacket

Allan is by definition a Contrarian Fund manager - that's how they differentiate themselves from other funds in the market.

So always expect them to front up when others are fleeing!

https://www.allangray.com.au/b/performance/

[Sideshow Bob]

Positive news for Sky City for once

https://www.nzx.com/announcements/422714

[Norwest]

Great news and I had no doubt this would be the outcome, Macquarie were always trying to double dip.

[Sideshow Bob]

https://www.nzx.com/announcements/423144

SkyCity Entertainment Group Limited (SkyCity) advises that, following the completion of the first five months of trading across the Group, it now expects Group normalised EBITDA for FY24 of between $290 million and $310 million. This compares to Group normalised EBITDA of $310 million in FY23 and previous guidance on 27 October 2023 of a modest year-on-year increase in Group normalised EBITDA for FY24.

The key drivers to this change in earnings guidance are:

-a reduction in electronic gaming machine revenue across the New Zealand sites, reflecting continued cost-of-living pressures and economic uncertainty, which is impacting discretionary consumer spending;

-a weaker than expected performance in the Adelaide property based on a lower revenue outlook with continued legal and compliance cost pressure. SkyCity continues to review the cost base for the Adelaide business;

-a delay in the settlement of the termination of the Auckland Car Park Concession Agreement with MPF Parking NZ Limited (Macquarie), resulting in lower car park earnings. Notwithstanding the recent High Court judgment in SkyCity’s favour, there remains uncertainty regarding the timing for the reacquisition of the SkyCity Auckland car park assets given further recent actions from Macquarie to delay resolution of this matter; and

-accelerated investment in the Group’s New Zealand online gaming operations ahead of the potential regulation of the online gaming market in New Zealand. Whilst potential regulation remains at an early stage, SkyCity is optimistic about the medium-term earnings opportunity this offers the Group.

SkyCity currently expects Group normalised NPAT for FY24 of $125 million to $135 million. This reflects the lower level of financing costs due to the delay in settlement of the Auckland Car Park Concession Agreement, which partially offsets the lower earnings of the Auckland Car Park assets.

SkyCity will provide additional detail on these key drivers as part of its FY24 interim result release in February 2024.
The updated Group normalised EBITDA and NPAT guidance does not reflect the impact of any potential temporary suspension of SkyCity Casino Management Limited’s casino operator’s licence in New Zealand, which is currently being considered by the Gambling Commission following an application made by the Department of Internal Affairs in September 2023 (for a period “in the range of 10 days”, as previously flagged to the market on 3 September 2023).

Due to the uncertainty around the potential adjustments required as part of SkyCity’s accounting processes, SkyCity is unable to provide an update for FY24 reported (statutory) results at this time.

[winner69]

Bit of a profit downgrade eh Bob …..the modest ebitda increase over F23 now likely to be a modest decrease

[Getty]

I visited the Auckland casino 3 times this week during daytime hours.
Compared to any other daytime visits, it seemed to be ticking over quite well.
Plenty of $5 a push buttons getting a hammering.

$17M of jackpots paid out last month makes Lotto look a bit tame!

Needless to say, l left a donation behind for shareholders...

[Balance]

Update on Oz proceedings against Sky City Adelaide - settlement in principle reached and subject to court approval.

Provision increased to A$73m or NZ$79m but no loss of operating license as feared by some commentators.

Provision is about half of the $150m estimated by analysts.


https://www.nzx.com/announcements/425626

In accordance with the requirements of accounting standard NZ IAS 37 in connection with the preparation of SkyCity's financial statements for the six months ended 31 December 2023, SkyCity has revised its provision for a potential AUSTRAC civil penalty and associated legal costs from A$45 million (NZ$49 million) as at 30 June 2023 to A$73 million (NZ$79 million) as at 31 December 2023.

[Muse]

Update on Oz proceedings against Sky City Adelaide - settlement in principle reached and subject to court approval.

Provision increased to A$73m or NZ$79m but no loss of operating license as feared by some commentators.

Provision is about half of the $150m estimated by analysts.


https://www.nzx.com/announcements/425626

In accordance with the requirements of accounting standard NZ IAS 37 in connection with the preparation of SkyCity's financial statements for the six months ended 31 December 2023, SkyCity has revised its provision for a potential AUSTRAC civil penalty and associated legal costs from A$45 million (NZ$49 million) as at 30 June 2023 to A$73 million (NZ$79 million) as at 31 December 2023.

a step in the right direction.

just need to get the 10 day NZ suspension over with, complete the odd ongoing independent review, & assuming SKC take their medicine and learn from it, the significant regulatory overhang/discount should dissipate over time (in my view).

although needs to be said, SKC NZX announcements the last few years have been a bit like whack a mole....never know what you are going to get and sometimes it pops out pops you in the nose

[Balance]

a step in the right direction.

just need to get the 10 day NZ suspension over with, complete the odd ongoing independent review, & assuming SKC take their medicine and learn from it, the significant regulatory overhang/discount should dissipate over time (in my view).

although needs to be said, SKC NZX announcements the last few years have been a bit like whack a mole....never know what you are going to get and sometimes it pops out pops you in the nose

Hence the sp where it is - rightly so imo.

Question now is whether the market will restate the sp back to where it was before all the negative developments came out.

[ratkin]

So let me get this straight in my head.

Sky and AUSTRAC the people after skys money have got together and agreed how much AUSTRAC wants, and SKY has set aside 79M to cover this plus legal fees.

However ultimately the court will decide, so it maybe less than the figure AUSTRAC want. Question is, is there a possibility that the court will give AUSTRAC more than the Two sides have agreed upon?

Have I understood it correctly?

[Balance]

So let me get this straight in my head.

Sky and AUSTRAC the people after skys money have got together and agreed how much AUSTRAC wants, and SKY has set aside 79M to cover this plus legal fees.

However ultimately the court will decide, so it maybe less than the figure AUSTRAC want. Question is, is there a possibility that the court will give AUSTRAC more than the Two sides have agreed upon?

Have I understood it correctly?

Yup, you have.

However, the Crown Casino settlement with AUSTRAC was approved by the court as agreed between the two parties. So likely to be the case here too.

[Leemsip]

This thing is on a huge surge. Im back to breakeven on my small parcel of shares.
I dont understand why its going up though. Lots of uncertainty still out there. Volume pretty low so its not the big boys buying in?

[LAC]

This thing is on a huge surge. Im back to breakeven on my small parcel of shares.
I dont understand why its going up though. Lots of uncertainty still out there. Volume pretty low so its not the big boys buying in?

I think the expectation was a lot worse hence the surge. Just need some good news on NZ now

[hogie]

I think the expectation was a lot worse hence the surge. Just need some good news on NZ now

Mr Market loves certainty ... even if there is only a prospect of certainty ...

[Sideshow Bob]

https://www.nzx.com/announcements/425971

SkyCity Entertainment Group Limited (SkyCity) has been informed by the New Zealand Department of Internal Affairs (Department) that it intends to file civil penalty proceedings in the High Court against SkyCity Casino Management Limited (SCML) for non-compliance by SCML with the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (Act) on 16 February 2024. The Department’s proposed enforcement response follows a review of SCML’s compliance with the Act.

SCML is a subsidiary of SkyCity and the holder of the casino operator’s licence for the SkyCity Auckland, SkyCity Hamilton and SkyCity Queenstown casinos in New Zealand.

Draft pleadings have been provided to SkyCity setting out five separate causes of action. Those causes of action allege significant compliance issues in relation to the Act. These are largely, although not exclusively, historical matters. Some matters relate to incidents of non-compliance which have previously been self-reported to the Department.

Since late 2021, SkyCity has had in place a significant AML/CFT enhancement programme to address compliance systems and correct historical shortcomings. This has involved, and continues to involve, significant investment in people and technology, and various reviews of SkyCity’s processes and systems to identify areas which require improvement.

SkyCity is disappointed that it has not met the standard to which it needs to hold itself, and this has resulted in the action taken by the Department. SCML and SkyCity will engage constructively with the Department in relation to the proposed proceedings, with a view to resolving these matters expeditiously. Given that the matter will be before the Court, it would be inappropriate for SkyCity to comment further at this stage.

In the event the Department’s claim was to be accepted in whole or in part by the High Court, SCML would be subject to a civil penalty to be imposed by the Court as set out in subpart 3 of the Act. Under the Act and relevant case law, SkyCity and the Department assess SkyCity's maximum liability in relation to these claims as being NZ$8 million in aggregate.

SkyCity is committed to continuing to uplift its processes and systems, particularly with respect to AML/CFT and host responsibility matters.
Ends

[bull....]

star casino under another investigation gone in halt .... skc adelaide again next ?

[winner69]

star casino under another investigation gone in halt .... skc adelaide again next ?

Never …..Sky play by the rules ….never break them

[alokdhir]

Never …..Sky play by the rules ….never break them

Soon a board appointment coming your way ...if not on ability then on loyalty basis ...lol :p

[Sideshow Bob]

https://www.nzx.com/announcements/426619

Reported: Net Profit After Tax: $22.5m (-$0.3m) -1.3%
Underlying: Net Profit After Tax: $66.5m (-$6.2m) -8.5%

[Leemsip]

I like the guidance for 2024 - $130m NPAT against an EV of $1.45b. P/E of 11 if they can achieve it. Got some upside to come here as the new conf centre and hotel kick in 2025...

This is a buy for me.

[ralph]

I like the guidance for 2024 - $130m NPAT against an EV of $1.45b. P/E of 11 if they can achieve it. Got some upside to come here as the new conf centre and hotel kick in 2025...

This is a buy for me.

Totally agree lemsip well moated also .

[ratkin]

I like the guidance for 2024 - $130m NPAT against an EV of $1.45b. P/E of 11 if they can achieve it. Got some upside to come here as the new conf centre and hotel kick in 2025...

This is a buy for me.

Only thing putting me off is all the anti gambling sentiment, but now labour gone maybe it will ease up a little

[Norwest]

Dividend in the bank today.

Next thing to execute was Horizon Hotel to be opening up April, per interim results less than a month ago "Horizon by SkyCity, our new 5-star hotel in Auckland, is planned to open in April 2024", but it looks to only be taking bookings from 16th May on their website.

The Horizon website design is really bad design when trying to book on mobile (it is OK on Desktop) - can someone else confirm it is terrible on their mobile device too or just me?

[mikelee]

Only thing putting me off is all the anti gambling sentiment, but now labour gone maybe it will ease up a little
Sky City's old business model is in deep S***. Article in the news yesterday about how China is cracking down on its citizens gambling overseas. Even though gambling is legal here and many parts of the world, it's illegal in China and its citizens must abide by Chinese law even when overseas. The 2 casinos in Singapore, along with many others around the world, have been warned. Not sure whether Sky City is on the list too.

[moimoi]

Take a look at recent presentations and you'll see the China Junket market isn't the primary driver of SKC earnings

[Muse]

Sky City's old business model is in deep S***. Article in the news yesterday about how China is cracking down on its citizens gambling overseas. Even though gambling is legal here and many parts of the world, it's illegal in China and its citizens must abide by Chinese law even when overseas. The 2 casinos in Singapore, along with many others around the world, have been warned. Not sure whether Sky City is on the list too.


Take a look at recent presentations and you'll see the China Junket market isn't the primary driver of SKC earnings

aye the Chinese junket days are long gone and some of the VIP trading will never return to pre covid days, and even low end cashy gambling with carded play coming in. I think that's increasingly reflected in the consensus. Depreciation on commercial properties will have an impact on the tax bill and distributable profit. But the business has spent big on new assets (convention centre, hotel etc), used debt to fund, is bearing interest bills now, but none of the profit. That's set to change soon.

another positive is the cabinet has made an in principle decision to regulate online casino gambling, which is a real positive for SKC. NZ is unique amongst the developed world in that we dont regulate on line gambling / casinos, and the Gov has decided to regulate that. According to a broker report there are 10-15 meaningful players (but over 100 total), and that number is expected to drop to sub 5. that could see SKC mktshare go from 7.5% to +30% and more than triple online EBIT to +30m.

There are a lot of headwinds for the business (macro and regulatory certainly) but some good growth areas as well. the opening of its new convention centre and hotel can't come soon enough for the business with all the whack a mole of bad news NZX updates being released.

[ratkin]

another positive is the cabinet has made an in principle decision to regulate online casino gambling, which is a real positive for SKC. NZ is unique amongst the developed world in that we dont regulate on line gambling / casinos, and the Gov has decided to regulate that. According to a broker report there are 10-15 meaningful players (but over 100 total), and that number is expected to drop to sub 5.



When is this going to happen, I hope it is not going to stop me placing bets with the likes of bet 365. The TAB is one of the least competitively priced odds makers in the world, no wonder people in NZ have a gambling problem when both teams in a match are paying 1.87

[NZSilver]

can't come soon enough for the business with all the whack a mole of bad news NZX updates being released


That's bang on, that's been the case since I bought back a fair few years ago. Upcoming America's cup, new convention center and tourism booming + the good cash gen and therefore div yield was my investment thesis. Covid, fires, regulatory trouble/money laundering multiple times, higher interest rates, car parks, esg.... It hasn't stopped for 5 or so years ...

[Sideshow Bob]

https://www.nzx.com/announcements/429677

SkyCity Entertainment Group Limited advises that Jason Walbridge has today been appointed as Chief Executive Officer.

Jason has more than two decades of senior executive public company experience in the global land-based and online gaming industries. He is currently a Strategic Advisor to global gaming and technology company Aristocrat Leisure Limited on its proposed acquisition of NeoGames S.A, and Executive Chairman of National Entertainment Network LLC, the largest amusement route operator in the United States. He has been appointed to the role after an extensive international search.

SkyCity Board Chair, Julian Cook, said today “the Board is delighted to announce Jason’s appointment as CEO of SkyCity, and we are looking forward to the valuable contribution Jason will make to the business. Jason has extensive global experience in the land-based and online gaming industries, which will position him well to lead SkyCity through its next phases.”

Mr Walbridge commented “it will be a privilege to lead SkyCity, and I am excited to be joining the business at this time as SkyCity looks to pursue the many opportunities ahead of it.”

Mr Walbridge is expected to start in early July 2024, following his move back to New Zealand.

Prior to his current roles, Mr Walbridge held roles with the online gaming supplier NYX Gaming Group Limited and its acquirer Light & Wonder Inc, and before that he spent 18 years with Aristocrat Leisure Limited where he held executive leadership roles in New Zealand and the United States. Previously, he held senior roles within consulting, including with Ernst & Young, and was an Officer in the New Zealand Defence Force. Mr Walbridge holds an MBA in International Management from the Auckland Institute of Studies.

Mr Cook confirmed that Callum Mallett will continue as Interim Chief Executive Officer until Mr Walbridge’s commencement date. “I’d like to thank Callum for his continued leadership and his support during this period.”

Mr Walbridge’s confirmation as CEO is subject to the usual regulatory approvals.
ENDS

[bull....]

Is this the latest company with trouble brewing

Another casino operator is in trouble. Nobody is talking about it


until last week the company lacked a permanent chief executive, a chief financial officer or a local chief operating officer. And the board is in a state of flux too – SkyCity chairman Julian Cook says he will to step down once a new chief executive takes over.

The most worrying sign for SkyCity shareholders is the attitude of its banks. Sources close to the casino group, not authorised to speak publicly about the matter, say that the company is having trouble convincing lenders to loan it money.

https://www.afr.com/companies/games-and-wagering/another-casino-operator-is-in-trouble-nobody-is-talking-about-it-20240419-p5fl81

[winner69]

Is this the latest company with trouble brewing

Another casino operator is in trouble. Nobody is talking about it


until last week the company lacked a permanent chief executive, a chief financial officer or a local chief operating officer. And the board is in a state of flux too – SkyCity chairman Julian Cook says he will to step down once a new chief executive takes over.

The most worrying sign for SkyCity shareholders is the attitude of its banks. Sources close to the casino group, not authorised to speak publicly about the matter, say that the company is having trouble convincing lenders to loan it money.

https://www.afr.com/companies/games-and-wagering/another-casino-operator-is-in-trouble-nobody-is-talking-about-it-20240419-p5fl81


Can’t be true bull ….a den of iniquity in turmoil running out of cash

Shares are dirt cheap I hear ..but I’m not buying

[Sideshow Bob]

One of the analysts on The Bull has SKC as a sell....even at $1.70 AUD

https://thebull.com.au/18-share-tips/22-april-2024/

On February 1, 2024, SKC announced it had revised its provision for a potential civil AUSTRAC penalty and associated legal costs from $A45 million on June 30, 2023, to $A73 million at December 31, 2023. The casino operator’s revised provision is an estimate of the potential exposure to penalties and legal costs. AUSTRAC filed civil penalty proceedings against SkyCity Adelaide, alleging contraventions under the Australian Anti-Money Laundering and Counter-Terrorism Financing Act. Reported revenue and profit from continuing operations fell marginally for the six months to December 31, 2023, when compared to the prior corresponding period.

[dubya]

$AU67 million fine

https://announcements.nzx.com/detail/431290

[Filthy]

$AU67 million fine

https://announcements.nzx.com/detail/431290

from memory they had provisioned about mid to high 70s for this, so taking into account lawyers fees, probably going to be bang on.... hopefully with a mill or two 'in change'.

[Gerald]

https://www.afr.com/companies/games-and-wagering/star-shares-surge-after-casino-confirms-hard-rock-interest-20240520-p5jf09

Competitor Star getting some takeover interest. Could we see similar for SKC?

[Balance]

https://www.afr.com/companies/games-and-wagering/star-shares-surge-after-casino-confirms-hard-rock-interest-20240520-p5jf09

Competitor Star getting some takeover interest. Could we see similar for SKC?

Hope not.

NZX and NZ can ill-afford another billion dollar entity becoming foreign owned.

[Filthy]

https://www.nzx.com/announcements/431368

$4M fine; better than the expected 10-day suspension.

slowly being de-risked.

[Balance]

https://www.nzx.com/announcements/431368

$4M fine; better than the expected 10-day suspension.

slowly being de-risked.

That is still to be resolved ( and to come).

But yes, been resolved one at a time.

Must say Sky City lawyers are doing a good job.

[Filthy]

That is still to be resolved

yep, assuming the HC hearing is just a formality eh?

[Balance]

yep, assuming the HC hearing is just a formality eh?

Sky City’s NZ operations will get suspended imo - too serious to be resolved without some penalty. Hopefully it will be for less than 10 days.

[winner69]

Good grief ….no divies for a while from a stock many held for the dividend


https://api.nzx.com/public/announcement/432366/attachment/420265/432366-420265.pdf

[Toddy]

Good grief ….no divies for a while from a stock many held for the dividend


https://api.nzx.com/public/announcement/432366/attachment/420265/432366-420265.pdf

For a while, I read years.

[Balance]

Good grief ….no divies for a while from a stock many held for the dividend


https://api.nzx.com/public/announcement/432366/attachment/420265/432366-420265.pdf

Downgrade #3 in the final stretch to closing off F24.

Choice of CR or no dividends - not much of a choice?

[Leemsip]

This is going to be a great buy at some point. I have a $1.50 target (to buy at). NZ monopoly casino for gawds sake. How can they loose.

Holding a small parcel already and bleeding slowly..... lol

[winner69]

Downgrade #3 in the final stretch to closing off F24.

Choice of CR or no dividends - not much of a choice?

You’re allowed 3 in a financial year aren’t you …F25 to come lol

Share price could fall to something not seen since last century

[LaserEyeKiwi]

Good grief ….no divies for a while from a stock many held for the dividend


https://api.nzx.com/public/announcement/432366/attachment/420265/432366-420265.pdf

Oof.

Although it is trading in ballpark 10-11x multiple on the lowered underlying NPAT, and ~7x its peak pre-pandemic NPAT.

whats a decent floor for this stock that represents good long term value?

[Leemsip]

$1.50 would be awesome. Might be some more bad news to come, as 2025 is going to be nasty for the economy.... no hurry IMO

[Balance]

$1.50 would be awesome. Might be some more bad news to come, as 2025 is going to be nasty for the economy.... no hurry IMO

And there you go - less than $1.50! :eek2::scared::eek2:

[alokdhir]

Poor trading conditions is making Skycity Auckland more greedy with their EGM which can control payouts ...met many regulars who claim that machines are not behaving normal ...coming from LT players mean there. cud be some truth ...so many have decided to stay away or go online way ...Maybe. case of farmer killing the golden goose ...business will suffer .

[bull....]

Is this the latest company with trouble brewing

Another casino operator is in trouble. Nobody is talking about it


until last week the company lacked a permanent chief executive, a chief financial officer or a local chief operating officer. And the board is in a state of flux too – SkyCity chairman Julian Cook says he will to step down once a new chief executive takes over.

The most worrying sign for SkyCity shareholders is the attitude of its banks. Sources close to the casino group, not authorised to speak publicly about the matter, say that the company is having trouble convincing lenders to loan it money.

https://www.afr.com/companies/games-and-wagering/another-casino-operator-is-in-trouble-nobody-is-talking-about-it-20240419-p5fl81



banks must be getting closer to talks ?

[Leemsip]

holy smoke $1.44.... sadly dont have any $$ to hand, which might be a good thing....

Lets see big Alan Gray rush under this falling piano first ..... their portfolio must be getting absolutely smoked KMD, Fletcher, SKC. Long term though bro.. no worries, cheaper is better bro... back up the truck.... fearful/greedy etc etc..

[Leemsip]

My casino is a bit strapped for cash... lol. Another NZX disaster.

[Entrep]

Alan Gray as a shareholder or buyer of whatever you own is a very, very bad sign.

[Leemsip]

Massive knife catchers...can imagine the interview process at the fund... give the interviewees a bag to hold and leave them somewhere for a couple of weeks... if you come back and they are still there then....

it does work out for them long term though, I looked at their returns. Pretty decent.
Getting absolutely pumped lately though. Sadly they havent been my exit liquidity on SKC, naieve of me.

[Filthy]

Another NZX disaster.

might turn into another $1 stock. so many around these days.... STU, NZX, WHS, GXH, ARV, HGH, CVT(?) - reckon we need a poll soon... figure out who punters think would win the race up to $2 bucks the fastest.... i must confess, I actually thought SKC was going to close out some of its compliance uncertainties, make guidance & kick-up.

hard to make money on the NZX these days. almost everything going backwards. got to play the long game.

[LaserEyeKiwi]

$1 Billion market cap (Almost dropped below it at low of the day so far).

[nztx]

might turn into another $1 stock. so many around these days.... STU, NZX, WHS, GXH, ARV, HGH, CVT(?) - reckon we need a poll soon... figure out who punters think would win the race up to $2 bucks the fastest.... i must confess, I actually thought SKC was going to close out some of its compliance uncertainties, make guidance & kick-up.

hard to make money on the NZX these days. almost everything going backwards. got to play the long game.

dont disagree with you there on what nZX is descending into

[LaserEyeKiwi]

might turn into another $1 stock. so many around these days.... STU, NZX, WHS, GXH, ARV, HGH, CVT(?) - reckon we need a poll soon... figure out who punters think would win the race up to $2 bucks the fastest.... i must confess, I actually thought SKC was going to close out some of its compliance uncertainties, make guidance & kick-up.

hard to make money on the NZX these days. almost everything going backwards. got to play the long game.

“$1 stock” is a fairly meaningless designation though, as it says nothing of the market capitalization, earnings growth or share price performance.

There are “$1 stock” companies on NZX worth under $50 million, and there are some worth more then $1 billion.

There are “$1 stock” companies on NZX that are down 50%+, there are some that are up 50%+

Reminds me of the time I was talking to someone who decided to invest in Napier Port at something near $3, I asked them why and they said because Port of Tauranga was trading at $7, so in his mind there was no reason that Napier port share price shouldn’t also increase to $7. I had no words.

[Filthy]

Reminds me of the time I was talking to someone who decided to invest in Napier Port at something near $3, I asked them why and they said because Port of Tauranga was trading at $7, so in his mind there was no reason that Napier port share price shouldn’t also increase to $7. I had no words.

thanks, I've just stuck another $100K on NPH since its such a bargain.... too the moon!

where is your sense of fun gone these days LEK?

[tim23]

thanks, I've just stuck another $100K on NPH since its such a bargain.... too the moon!

where is your sense of fun gone these days LEK?

Can’t see your order for NPH in the depth?

[kiwikeith]

“$1 stock” is a fairly meaningless designation though, as it says nothing of the market capitalization, earnings growth or share price performance.

There are “$1 stock” companies on NZX worth under $50 million, and there are some worth more then $1 billion.

There are “$1 stock” companies on NZX that are down 50%+, there are some that are up 50%+

Reminds me of the time I was talking to someone who decided to invest in Napier Port at something near $3, I asked them why and they said because Port of Tauranga was trading at $7, so in his mind there was no reason that Napier port share price shouldn’t also increase to $7. I had no words.


Quite a few people use this logic and think $1 shares are cheap and $10 shares are expensive without any reference to earnings per share or dividends per share. The old timers on this site may remember Brrieley investments and their bonus shares. It was just an administrative waste of time but many of the shareholders luxuriated in it.

[777]

. The old timers on this site may remember Brrieley investments and their bonus shares. It was just an administrative waste of time but many of the shareholders luxuriated in it.

Luxuriated enough to buy my first house with about an 80% deposit.

[Filthy]

Quite a few people use this logic and think $1 shares are cheap and $10 shares are expensive without any reference to earnings per share or dividends per share. The old timers on this site may remember Brrieley investments and their bonus shares. It was just an administrative waste of time but many of the shareholders luxuriated in it.

think this is a cross purposes discussion though Kiwi. wasn't talking market cap, divie return, shares on issue, trailing or future EPS or overall value. I'm inciting a playful discussion, under an assumption that $1 buys you 1 share in 1 of those companies; based on an assumed parity.... not for example $0.94ARV vs $1.08WHS; but.... exactly 1:1. yes some, have been trading slightly higher or lower, yes some are trading up down or sideways at the moment, but all within a rough range, so $1 for.... 1 share. so which would you 'back' to reach $2 a share first, not which is the cheapest, biggest, best yield etc. seems to have been lost on some folk.... but hey ho. Brierley was one of my first shares too - what a trip down memory lane that is!

[Norwest]

Back in March, I posted in this thread that it looked like they were delaying their opening of Horizon Hotel - https://www.sharetrader.co.nz/showthread.php?5609-SKC-Sky-City&p=1045670&viewfull=1#post1045670

Skycity knew about it then and kept kicking the can down the road, yet they are only telling the market now... remember this is one of three "key drivers" to a profit downgrade so they are telling us.

If this was so material why have they not advised their shareholders earlier? Is it malicious or they are just asleep at the wheel? Either way it is blasphemous to their shareholders intelligence.

I was traveling today so wasn't able to jump on the call - did anyone take any notes? I can't listen to it from their website because Skycity's website links to a image file not the audio file - I guess that's what we get when they hired Andrew McPherson as their "IT guy" - the same person that ruined the stuff website and called it a success.

[shareman]

Yes, I listened to the call,

Just your usual analyst questions, but some of them were critical towards management, which is fair

[Balance]

The die is cast imo.

Sky City unlikely to be a listed NZX stock by year's end.

Amen.

[buy_high_sell_lo]

Where did you listen to the call? Can't seem to get the link to work.

[shareman]

Where did you listen to the call? Can't seem to get the link to work.

I just used the link on the NZX announcement, rang the 0800 number and entered PIN

[buy_high_sell_lo]

I just used the link on the NZX announcement, rang the 0800 number and entered PIN

Thank you, I'm currently overseas at the moment so can't use that option. I'll have to wait until the site link works for the download audio file or for them to reply my email.

Do you happen to remember if they mentioned anything regarding their creditors asking for them to take this course of action or if they are willingly doing it to remain prudent?

[Leemsip]

The die is cast imo.

Sky City unlikely to be a listed NZX stock by year's end.

Amen.

What do you mean Balance. SKC might go lower, still going to be listed, still making $$.

[Rawz]

SKC has been in a bad news down cycle since covid. Poor fellas.

Balance sheet too weak to sustain the div. Hmmm.

[Entrep]

What do you mean Balance. SKC might go lower, still going to be listed, still making $$.

takeoverrr

[winner69]

NBR says Sky got $350m of those dreaded USPP debt …some due next March

Suppose they couldn’t resist a headline like

SkyCity’s Ryman nightmare

https://www.nbr.co.nz/hunters-corner/skycitys-ryman-nightmare/
Prob paywalled

[Leemsip]

peak bad news cant be too far away... I think there is one more piece of bad news to come with the DIA discussions in June...

Interesting to see which way this goes today. Some institutions will want to get out and take a while to make the decision. My 2c is that we will see it drift lower still over the next few weeks,

[Rawz]

2.5m trade before the open at $1.485

[Leemsip]

takeoverrr

So I guess you are thinking about getting in then?

[LaserEyeKiwi]

think this is a cross purposes discussion though Kiwi. wasn't talking market cap, divie return, shares on issue, trailing or future EPS or overall value. I'm inciting a playful discussion, under an assumption that $1 buys you 1 share in 1 of those companies; based on an assumed parity.... not for example $0.94ARV vs $1.08WHS; but.... exactly 1:1. yes some, have been trading slightly higher or lower, yes some are trading up down or sideways at the moment, but all within a rough range, so $1 for.... 1 share. so which would you 'back' to reach $2 a share first, not which is the cheapest, biggest, best yield etc. seems to have been lost on some folk.... but hey ho. Brierley was one of my first shares too - what a trip down memory lane that is!

Not taking it seriously don’t worry.

But in fact some very serious people take the $1 stock thing seriously - none other than NASDAQ have this absurd rule that if a stock price is under $1 for a certain amount of time, then the company must delist! Its so weird, makes no allowance for market cap or profitability - so usually when a company finds itself in that situation they simply do a reverse stock split (and nothing else) and NASDAQ is then fine with them remaining listed.

[LaserEyeKiwi]

Looking at its assets, its pretty attractive to someone as a takeover target considering a long term slice & dice. Private equity might be sniffing.

[nztx]

Time for ...

A couple of cheap Casinos going - owned by one listed company on hard times & looking for a takeout .. or too early yet ? ;)

[kiwikeith]

Not taking it seriously don’t worry.

But in fact some very serious people take the $1 stock thing seriously - none other than NASDAQ have this absurd rule that if a stock price is under $1 for a certain amount of time, then the company must delist! Its so weird, makes no allowance for market cap or profitability - so usually when a company finds itself in that situation they simply do a reverse stock split (and nothing else) and NASDAQ is then fine with them remaining listed.

There is a reason for the rule. When a share trades for $1, a one cent rise is a rise of one percent. When a share trades for 10c, a one cent rise is a rise of ten percent. So the exchange is concerned about a lack of liquidity. In low volume stocks there can be major movements and more scope for manipulation and fraudsters. You could argue the $1 barrier is too high but they have to have the barrier at some level and better for it to be in the high side than low side.

[nztx]

What was the NZX halt on SKC Trading earlier this afternoon all about ?

ASX remained trading without restriction

[Leemsip]

This is starting to look pretty good price wise. Currently on p/e of 9 or 10, coming out of a huge capex cycle (Horizon Hotel, Conference centre), and having paid some serious wedge to settle fines. These new facilities will all start to print money when they go live, I think the latest on the hotel is August, not sure about ICC. Hopefully the company has taken action to ensure no further breaches of regulations etc.

I would press the buy button, but we are only mid way through the epic series of punishing regulatory actions. Still got Adelaide casino review (is SKC ok to keep holding the license) and the NZ govt (DIA) smack down to come...

So currently $1.50 share price. I am very confident this will work out well in the long term. However I think this goes down further when these next regulatory actions hit. Just a waiting game now... trying not to go too early... Crazy that this could go lower still....

[Aaron]

9 times forecast NPAT.

Is retail spending still falling? and are we through the recession yet? I would have thought that for most people gambling is a discretionary expense and how much will that affect SKC's turnover if the recession has further to go.

I would have thought that a lot of SKC's expenses are largely fixed and any drop in turnover would flow through to the bottom line, although I have not done any research.

Job layoffs and higher interest rates as fixed loans rollover are they just happening now?

I have not done any research but wonder if online gambling might take a chunk of the hard core gamblers money? Obviously a night out at the casino can't be replaced at home.

Just posting because I am avoiding work, I have not done any research so ignoring my comments above is probably a good idea.

[Leemsip]

yeah Aaron, good calls, recession will impact, slowdown in tourism coming through with reduced cruise ships. Economy is sh#t and getting worse.

I am of the view that the share price will turn around before the economy does, so trying to time this and go early (but not too early).

[bull....]

star entertainment saying today revenue down 5% last quarter so i guess adelaide be down similar amounts

[Sideshow Bob]

https://www.nzx.com/announcements/433350

SkyCity sells equity investment in Gaming Innovation Group Inc

SkyCity Entertainment Group Limited (SkyCity) advises that it has entered into an unconditional agreement to sell its entire shareholding of around 10% in Gaming Innovation Group Inc (GiG), a European-based online gaming platform provider and media services operator. The net proceeds of the sale are approximately NZ$55 million after brokerage and legal costs.

SkyCity intends to use the proceeds of the sale to pay down debt as part of its ongoing prudent approach to capital management.

SkyCity continues to have a valuable relationship with GiG through its involvement with the SkyCity Online Casino (operated from Malta). However, SkyCity has decided to divest its shareholding in GiG as it is non-core to its ongoing operations, and is now not considered strategically necessary for SkyCity.

SkyCity acquired its shareholding in GiG in April 2022 for €25 million (approximately NZ$40 million at that time).

[bull....]

another earnings downgrade today

[buy_high_sell_lo]

another earnings downgrade today

Looks the same as their previous update?

[Balance]

Looks the same as their previous update?

Shows just how shallow Bull… really is. No analysis, no assessment and no comprehension.

[bull....]

Looks the same as their previous update?

6/6/24 ebitda is 280 - 285 in there trading update
26/6/24 ebitda is forecast to be 250 - 270 it is mentioned for early 25 forecasts in there trading update in the presentation

anyway i stayed the night there this week and had a good look round etc offering discounts at the moment which they dont normally do on stuff , relatively quiet compared to other visits i have done so i can understand the downgrade to outlook. just a reflerction of the times

[buy_high_sell_lo]

6/6/24 ebitda is 280 - 285 in there trading update
26/6/24 ebitda is forecast to be 250 - 270 it is mentioned for early 25 forecasts in there trading update in the presentation

anyway i stayed the night there this week and had a good look round etc offering discounts at the moment which they dont normally do on stuff , relatively quiet compared to other visits i have done so i can understand the downgrade to outlook. just a reflerction of the times

I believe you have gotten the FY24 update and FY25 forecasts confused.
All SKC have done is reiterated their earnings update from 06 of June.

Underlying Group EBITDA for FY24 of between $280 million and $285 million and underlying Group NPAT for FY24 of between $120 million and $125 million

Underlying Group EBITDA for FY25 to be between $250 million and $270 million.

[bull....]

I believe you have gotten the FY24 update and FY25 forecasts confused.
All SKC have done is reiterated their earnings update from 06 of June.

Underlying Group EBITDA for FY24 of between $280 million and $285 million and underlying Group NPAT for FY24 of between $120 million and $125 million

Underlying Group EBITDA for FY25 to be between $250 million and $270 million.

so going forward they are going to make less money in yr25

[buy_high_sell_lo]

so going forward they are going to make less money in yr25

Correct however I imagine that is partly because they will need to absorb higher than usual opex for the NZICC without significant revenue to cover the expense in the first year of operations.

[bull....]

Correct however I imagine that is partly because they will need to absorb higher than usual opex for the NZICC without significant revenue to cover the expense in the first year of operations.

be the same with the convention centre. The return of GDP growth might help absorb the costs quicker. probably a yr26 + story considering the lag of int rate effect.