Posted on: December 8, 2023, 06:51h. 

Last updated on: December 8, 2023, 06:51h.

New Zealand-based SkyCity Entertainment foresees a stagnant or lower operating profit for the fiscal year. This comes after previously projected revenue improvement.

SkyCity, which owns casinos in New Zealand and Australia, cites diminished revenue as the reason for this financial outlook. Additionally, uncertainties surrounding parking garage repossession after a deal with Macquarie Group collapsed also contribute to the forecast.

SkyCity now anticipates a normalized earnings before tax to range between NZD290 million and NZD310 million ($178.3 million – $190.58 million). This is a decline from last year’s NZD310 million and contradicts the previous report from October.

Factors driving this earnings adjustment include decreased revenue from electronic gaming machines due to “cost-of-living pressures and economic uncertainties.” SkyCity also revealed increased investments in iGaming operations in Malta, tapping into a growing market.

Stock Market Trends

The company’s stock price has generally been on the decline, apart from a high point in August last year. It has seen fluctuations and currently stands at NZD1,790 ($1,100.49).

The 12-month range has seen the stock price reach a high of NZD3,200 ($1,967.36) in December 2021, and a low of NZD1,720 ($1,056.46) on November 22.