SkyCity Entertainment Group believes that online casino represents a “substantial long-term development prospect,” based on its performance through the six months ended December 31, 2021, which was “extensively” influenced by COVID-19.

SkyCity Financial Report

SkyCity reports that the first half of the 2022 fiscal year was “another hard period” due to “severe COVID-19 interruptions,” particularly in Auckland, where the company’s operations were shut down for 107 days.

While the New Zealand domestic gaming ecosystem functioned well when unrestricted, the company’s tourism-related industries continued to be harmed by international border closures. SkyCity anticipates a 145.3 percent fall in normalized profit after tax and a 69.2 percent decline in EBITDA, compared to 143.3 percent and 86.4 percent declines in reported profit after tax.

Furthermore, the online casino SkyCity states that its online casino revenue and earnings increased during the period, with approximately 10,000 active clients monthly. According to Michael Ahearne, CEO of SkyCity, the online casino company clearly represents a substantial long-term growth opportunity with the potential to monetize gaming in the future, subject to the online casino sector in New Zealand being regulated. Looking ahead, the company believes that it will remain focused on navigating through the current uncertainty and near-term challenges posed by COVID-19 while ensuring financial resilience through ongoing cost and capital control and good cash management.

Corporate Notes

According to Ahearne, COVID-19 continued to have a significant impact on the business and operations at each of SkyCity’s properties in the first half of the financial year, which is why the government-mandated lockdowns resulted in the closure of SkyCity Auckland for 107 days, SkyCity Hamilton for 65 days, SkyCity Queenstown for 22 days, and SkyCity Adelaide for eight days. 

When the sites were permitted to reopen, they functioned under substantial limits imposed by restrictions on large gatherings and physical separation regulations, and I’m quite proud of how the SkyCity team overcame those obstacles. It has been observed that the domestic gaming business in New Zealand is resilient and quick to revive when operating without constraints.

Due to COVID-19, SkyCity Adelaide had substantial capacity constraints, CBD disturbances, and worker disruptions. The performance of the economy is predicted to improve as restrictions are eased, interstate borders are gradually opened, and overseas tourists are welcomed back to Australia. It has implemented a flexible operating model across the group, adapting as needed to prepare for COVID-19 disruptions, and it has imposed immunization certificates across all locations to ensure the safety of personnel and customers (from December 1, 2021, in New Zealand and from February 10, 2022, in Adelaide). The SkyCity online casino business has been a standout performer over the quarter, exceeding expectations once again with considerable revenue, EBITDA, and customer growth.