Positive news for Sky City for once
https://www.nzx.com/announcements/422714
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Positive news for Sky City for once
https://www.nzx.com/announcements/422714
Great news and I had no doubt this would be the outcome, Macquarie were always trying to double dip.
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.
Bit of a profit downgrade eh Bob …..the modest ebitda increase over F23 now likely to be a modest decrease
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...
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
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?