• SkyCity Entertainment Group has returned to a net profit of NZ$29.2 million in FY25, compared to a major loss last year, though this was largely due to the absence of significant one-off costs from the prior period.
• A truer measure of operational health, underlying EBITDA, fell by 15.9% to NZ$233.7 million amidst a “difficult operating environment” and lower customer spending.
• The company has issued a profit warning for the year ahead, forecasting that underlying EBITDA in FY26 will fall further to between $190 million and $210 million.
• The weak guidance is attributed to the high costs of regulatory upgrades and the implementation of mandatory “carded play” in New Zealand, which is expected to have a $20-30 million negative impact on EBITDA.
• The company is actively preparing for New Zealand’s new regulated iGaming market, which it expects to be operational in FY27.

SkyCity Entertainment Group has reported a statutory net profit after tax of NZ$29.2 million for the 2025 financial year, a significant swing from the NZ$143.3 million loss it posted in FY24. However, a closer look at the company’s results reveals a much more challenging operational picture.

The return to headline profitability was largely the result of the absence of major one-off costs that plagued the prior year’s results, including regulatory charges and a one-off tax expense of NZ$129.4 million. A more accurate indicator of the business’s core health, underlying EBITDA, actually fell by 15.9% to NZ$233.7 million. This was on the back of a 4.2% decline in group revenue to NZ$825.2 million, which the company attributed to a “difficult operating environment” and lower discretionary spending by customers.

Weak Guidance for the Year Ahead

Looking forward, SkyCity has warned investors to expect a further decline in earnings in the 2026 financial year. The company has issued guidance for its underlying EBITDA to fall to a range between $190 million and $210 million.

CEO Jason Walbridge explained that this is due to several factors, including ongoing challenging market conditions and elevated investment costs. A key driver of the expected decline is the financial impact of implementing mandatory “carded play” across all its New Zealand properties. The new player protection measure is expected to have a negative impact on previously uncarded revenue, equivalent to a $20 million to $30 million hit to EBITDA in FY26. As a result of the weak outlook, the company doesn’t expect to pay a dividend in the coming year.

Preparing for a Digital Future

A key part of SkyCity’s long-term strategy is its preparation for New Zealand’s newly legalised online casino market. The government has confirmed it will issue 15 three-year licences, and SkyCity has shown a strong interest in securing one.

However, Walbridge remained cautious, stating that the company is “awaiting more details from the government and regulator on the auction process and licence terms.” SkyCity’s current offshore online gaming business reported a $1.8 million loss for FY25, a figure that reflects its continued investment ahead of the domestic market opening. The company is targeting a breakeven result for the regulated online business in its first year of operation, expected to be FY27.

A Business in Transformation

The results paint a picture of a company in the midst of a deep and costly transformation. SkyCity is navigating a difficult economic climate while simultaneously investing heavily to meet the demands of a much stricter regulatory regime across both New Zealand and Australia. The weak FY26 guidance reflects the short-term financial pain of this transformation. The company is betting that these investments, combined with the future openings of the NZICC and the regulated online market, will pave the way for a recovery in FY27 and beyond.