NZ$822.7m Revenue, NZ$181.6m EBITDA: SkyCity Entertainment Group Reports Its FY26 Full Year Results
SkyCity Entertainment Group reported its FY26 results on 20 August 2026, and the headline number is a 22.3% fall in underlying EBITDA to NZ$181.6 million for the year ended 30 June 2026. Underlying revenue was almost flat at NZ$822.7 million, down 0.3%, while underlying net profit after tax dropped 46.9% to NZ$38.0 million. The company says the result sits within the NZ$180 million to NZ$190 million guidance range it set in May.
On a reported basis the picture is heavier. Reported EBITDA was NZ$120.5 million, down 44.2%, and reported NPAT was NZ$18.2 million, down 37.6%, both affected by accounting adjustments and NZ$23.5 million of costs tied to the Building a Better Business remediation programme in Adelaide.
How SkyCity earnings performed in FY26
The company rolled carded play out across all of its New Zealand casinos during FY26, and it names that rollout, alongside reduced visitation and spending in the fourth quarter in Auckland and Adelaide, as the reason gaming revenue fell. Higher non-gaming revenue, including the NZICC’s contribution in the second half, offset part of that. Second-half underlying EBITDA was NZ$96.1 million, with the fourth quarter carrying a negative impact of approximately NZ$20 million compared with the third.
CEO Jason Walbridge said: “In FY26, we implemented carded play across our New Zealand casinos, opened the NZICC, advanced our asset monetisation, exceeded our cost-out targets, continued preparing for the regulated New Zealand online gambling market, and settled in principle the outstanding major regulatory issues in Adelaide.”
The result met the guidance the company gave in May, which had already flagged softer consumer spending in the final quarter of the year.
What carded play cost the casino business
On the rollout, Walbridge said: “The rollout of carded play across our New Zealand casinos is complete, and the financial impact is in line with our guidance. We also launched our rebranded loyalty programme, SHOW by SkyCity.” The company adds that carded play has improved its visibility into individual customer activity and strengthened its host responsibility capability.
Lower gaming revenue in exchange for customer-level data and a stronger compliance position. For any casino operator moving towards account-based play, SkyCity has now published the cost of that trade over a full year rather than a forecast.
Why the new convention centre matters
The New Zealand International Convention Centre opened on 11 February 2026 and hosted 141 events in FY26, with approximately 100,000 visitations. The FY27 pipeline is larger, at approximately 350,000 visitations, including several large international conferences.
The company points to the increased visitation the centre brings to its Auckland precinct, with FY27 set to be its first full year of operation.
How SkyCity plans to cut its debt
Net debt was NZ$591 million at 30 June 2026, or 3.1x EBITDA on a debt covenant basis. In July 2026 the company renewed part of its banking facility, lifting the total to NZ$277.5 million and extending certain maturities by two years.
The reduction runs through property. The sale of 99 Albert Street and Victoria Street for NZ$74.5 million is unconditional and settles in September 2026, and a non-binding heads of agreement has been signed for the Grand Hotel. Together the programme is expected to deliver NZ$275 million to NZ$300 million in gross proceeds by December 2026, all earmarked for debt repayment. Capital expenditure was NZ$95.4 million, below guidance, including NZ$32.9 million for the NZICC.
Where the cost savings come from
SkyCity exceeded its FY26 savings target and is now targeting NZ$30 million of realised benefits in FY27, growing to NZ$70 million in FY28. The company describes this as a group-wide reset of its operating model, recognising the structural change in its land-based revenue and the introduction of online gaming in New Zealand. The programme may affect 200 to 250 predominantly New Zealand-based corporate and back-of-house roles. Alvarez & Marsal has been engaged to help identify revenue, visitation and cost initiatives, which remain under assessment.
What is happening in Adelaide
SkyCity is formalising a non-binding agreement with Consumer and Business Services, its South Australian regulator, relating to the review undertaken in response to the Martin independent report. It expects to pay a fine of A$21 million in three equal instalments over two years.
The B3 programme is now expected to receive final approval in early FY28, which the company attributes to the pace of design approvals and casino system delays. In the market release the company describes an A$43 million write-down of the Adelaide carrying value; its audited financial statements in the Annual Report 2026 record the same charge as an impairment of NZ$52.2 million (A$42.9 million). A strategic review of SkyCity Adelaide will begin in the first half of FY27, with further updates promised as appropriate.
What SkyCity expects next
No FY27 earnings guidance has been given, with a trading update due at the October shareholder meeting. Early 1Q27 trading has continued at the fourth-quarter EBITDA run-rate, with the NZ$30 million of FY27 savings partly offset by higher online costs as the regulated market opens. FY27 capital expenditure is forecast at NZ$80 million to NZ$100 million, before any online licence costs.
SkyCity says it remains on track to bring net debt to EBITDA below 2.0x by the end of FY27, subject to the Grand Hotel sale completing and before any online licence payment. The company has lodged a bid to participate in New Zealand’s online casino licence auction, and intends to reinstate dividends once positive cash flow is achieved.
Source: SkyCity Entertainment Group
