SkyCity sees $55m hit to EBITDA vs guidance for 2020

SkyCity Entertainment says it expects its EBITDA for the year to end June to be about $55 million lower than its previous expectations, assuming its properties remain open.

In a statement to the New Zealand Stock Exchange, it said it now expects normalised EBITDA for FY20 to be in the range $230-250 million and normalised NPAT for FY20 to be in the range $85-100 million.”

For March, the group said revenue from table games at its Auckland property is down 43 percent, with electronic gaming revenue down 14 percent. Visitation was down 15 percent for the month.

Revenue to the Auckland hotels is down 15 percent although occupancy is still good at 79 percent.

In its other resorts, SkyCity reports non gaming revenue in Hamilton is down 12 percent but there has been no impact on gaming revenue.

In Queenstown the revenue from its two casinos is down 37 percent and in Adelaide Gaming revenue is down 7 percent and non-gaming revenue down 14 percent.

Chief Executive Graeme Stephens said there had been a substantial decline in international business activity with Asian customers not able to travel to New Zealand and Australia. He is expecting further declines ahead.” While there have been no instances of transmission within communities in New Zealand to date, it is reasonable to assume that this will occur which will have an impact on visitation to our precincts.”