SkyCity Entertainment reports net profit after tax of NZ$66.5 million

With an 8.5% decrease from the previous year, SkyCity Entertainment Group of New Zealand recorded a net profit after tax of NZ$66.5 million, blaming a “challenging economic climate.”

Sales fell 3.7% to NZ$445.2 million in SkyCity’s interim results, which were released early on Thursday. Group EBITDA also fell 5% to NZ$101 million.

The company had difficulties even with an 8% rise in visitors to its flagship Auckland site, particularly in domestic electronic gaming machine revenues.

CEO Michael Ahearne said that their company this half was harmed by the tough economic environment, particularly domestic electronic gambling machine revenues. Thankfully, their table gaming and hospitality businesses in Auckland have prospered; but, we still expect further cost increases and increased spending on compliance programs.

Following Ahearne’s departure on March 9, 2024, SkyCity stated in a separate statement that Callum Mallett would be joining the company as interim CEO. Mallett has been employed at SkyCity New Zealand since February 2021 and now serves as the Chief Operating Officer.

Chairman Julian Cook will also provide executive support starting on February 26, 2024, on a part-time, fixed-term basis. It said, “Once a new Chief Executive Officer has commenced, it is expected that Mr. Cook will cease this executive role.”

Mallett will continue in his role until the SkyCity Board concludes its search for a new CEO.

Original story by: IAG