so going forward they are going to make less money in yr25
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interesting the star boss saying casino's may not ever return to the boom days. business might end up being more about hotels and restaurants
Gaming no longer ‘glorious part of the business’: Star boss
https://www.afr.com/companies/games-...0240626-p5jozc
bad news down cycle continues
https://www.nzx.com/announcements/434666
Will have a $5m impact to ebitda
SkyCity Entertainment Group Limited (SkyCity) advises that SkyCity Casino Management Limited (SCML) has reached an agreement with the Secretary for Internal Affairs (Secretary) to resolve the Secretary's application to temporarily suspend SCML’s casino operator’s licence (Application). As part of the agreement, SCML has agreed to close the gambling area of the SkyCity Auckland casino for five consecutive days in 2024.
This has been known for a while. $5m hit is fine.
One more shoe to drop on the Adelaide casino review...
If they're smart, they'll use the time the casino is closed to get every bit of maintenance done, so it doesn't impact on customers
https://www.nzx.com/announcements/436314
Impairment of SkyCity Adelaide assets and adjustment for change to New Zealand tax legislation
Key Points
• SkyCity expects to impair its Adelaide assets by A$86.2 (NZ$94.3 million) to reflect updated assumptions regarding the introduction of mandatory carded play at the SkyCity Adelaide casino in 2026, and additional legal and compliance costs associated with SkyCity Adelaide’s uplift programmes.
• SkyCity also expects to record a tax adjustment of NZ$129.6m following recent changes to New Zealand tax legislation.
• The impairment and tax adjustment are both non-cash, and do not impact the SkyCity Group’s underlying EBITDA or underlying NPAT for the financial year ended 30 June 2024.
• These adjustments and SkyCity’s FY24 Group financial statements remain subject to external audit.
I purchased some today, I was worried I may have put you off buying them, more fool you if you listened to anything I say. No detailed analysis from me but roughly.
They managed a 12 cent dividend or 15.38cents (incl imp crs) in the past so on $1.60 that is a 9.6% yield. By my calculations a 12 cent dividend on current shares is roughly $91mill pa (758,117,231 * .12). Doable???.
They used to manage 20cents or 25.6 cents (incl imp cr).
Dividends to hopefully commence again in Sept 2025, little over a year so gain in share price on falling interest rates should cover the 12 months without a dividend.
Too many assumptions re recessions, govt intervention, new hotel and conference centre etc etc. New boss in the herald on the weekend hopefully he does OK. Earnings out in 3 days. No idea what happens but will meet back here in a year to assess the success or failure of this speculation.