SkyCity Suspends Dividends, Downgrades Earnings Amidst Challenges

Powerhouse operator of casinos in Australia and New Zealand, SkyCity Entertainment Group, revealed a significant reorganization on Thursday.

Dividend payments will cease for the entirety of 2024 and 2025 in order to “maintain prudent liquidity,” according to the firm. They have modified their fiscal year (FY24) profit guidance in tandem with this action.

SkyCity provides multiple justifications for the modifications. Their budget is being squeezed by a substantial AU$67 million fee levied by Australia’s financial body, in addition to a nearly NZ$76 million commitment to construct a conference center in New Zealand.

Moreover, the company attributes the decline in expected earnings to a “tough economic climate” that has an impact on customer spending. The strain is increased by the new Horizon Hotel’s construction delays and anticipated increases in casino duty costs.

The news is made while SkyCity continues to encounter regulatory obstacles. Their concerns about the future are heightened by the postponement of a hearing over the possible suspension of their casino license in New Zealand.

Original Story by: Asian Gaming Brief