SkyCity cuts full-year EBITDA forecast as market conditions weigh on consumer spend

SkyCity Entertainment Group has revised its earnings forecast downward, warning that group EBITDA for the 2025 financial year will fall approximately 4% below the lower end of its previously stated guidance range of NZ$225 million ($133.3 million) to NZ$245 million ($145 million). 

The downgrade comes amid ongoing challenges in consumer spending across its hospitality and gaming businesses.

In a trading update released on Tuesday, the New Zealand-based operator said spend per visit continued to decline across several of its precincts, making earnings projections increasingly difficult. SkyCity Auckland in particular reported softer revenue from both its gaming and hospitality segments, while properties in Hamilton and Queenstown are said to be performing in line with expectations.

In South Australia, the group’s Adelaide property has seen weaker-than-expected performance, largely attributed to lower visitation and reduced VIP patron spending. SkyCity linked this decline to enhanced anti-money laundering (AML) measures and a strengthened harm minimization program.

Still, electronic gaming machine turnover in the state rose year-on-year, and the group remains committed to a NZ$60 million ($35.5 million) uplift program in Adelaide through FY27.

“The difficult market conditions that businesses like ours – which are reliant on discretionary consumer spending – are experiencing continue to have a significant impact on both our revenue and earnings,” said CEO Jason Walbridge in the update.

While he noted that visitation across all SkyCity precincts remains steady, reduced spend per customer has pressured the group’s financials. The company is currently undertaking cost adjustments in response.

Despite near-term headwinds, Walbridge struck an optimistic tone on the group’s long-term prospects. He highlighted the anticipated opening of the New Zealand International Convention Centre (NZICC) in February 2026 as a key opportunity for future growth.

SkyCity also reiterated its preparations for New Zealand’s forthcoming regulated online casino market, expected to launch in 2026. The company is working with authorities on regulatory development and is expected to be among the applicants for new iGaming licenses alongside both domestic and international operators.