New Zealand gambling operator SkyCity recently updated its FY2025 earnings guidance, expecting the full-year EBITDA to fall an additional 4% below the previously forecasted range of NZ$225-245 million. This adjustment stems from the company's latest half-year financial report for 2025, which shows a continuously deteriorating operating environment.
Financial data reveals that SkyCity Group's revenue in the first half of the year decreased by 5% year-on-year to NZ$422 million (approximately US$241.7 million), with net profit after tax plummeting by 41% to NZ$38 million. Despite stable overall visitor numbers and a 16% increase in total room sales, core business performance was poor.
Specifically, the Auckland operations faced challenges with declining per capita spending, with noticeable reductions in spending on gambling and hotels. The Adelaide operations were also under pressure, with both foot traffic and VIP spending declining. This was partly due to a weak overall consumer environment and also related to the venue's enhanced anti-money laundering and harm minimization measures. Notably, SkyCity Adelaide was fined a hefty AU$67 million (approximately US$43.1 million) in June last year for breaches of anti-money laundering regulations.
Facing operational pressures, SkyCity CEO Jason Walbridge stated: "Businesses reliant on discretionary spending are facing severe challenges. We are actively adjusting our cost structure to cope with the decline in revenue, while remaining cautiously optimistic about the business outlook." The company's recent seven-year partnership agreement with Light & Wonder is seen as one of the strategic moves to address the current difficulties.
Despite short-term pressures, SkyCity's management remains optimistic about medium and long-term development, hoping to seize market opportunities as consumer confidence recovers. However, in the current environment, the company has had to lower its profit expectations to reflect the real operational pressures.
