��һ�ǿ�����

Casino and hotel operator SkyCity Entertainment Group’s annual profit dropped 42% to $71.5 million and it today confirmed an expected equity raise of $240m. 

CEO Jason Walbridge said: “Our financial results reflect the difficult operating environment we’ve navigated in FY25. 

“The delayed economic recovery in New Zealand has led to lower discretionary spend impacting our business and that has come through the same time as a period of elevated investment”. 

After Tuesday’s trading halt, Walbridge today announced the company going to the market to get money. 

“In light of current trading conditions, historical calls on capital from a number of extraneous matters and the ongoing investment requirements of the business, SkyCity has today announced a $240m equity raising,” it said. 

That is to provide balance sheet resilience to navigate this period of continued economic weakness; and execute on near-term priorities, it said. 

Jason Walbridge started as SkyCity CEO in July, 2024. Photo / Jason Oxenham 

SkyCity will issue 343m new shares and Macquarie has been appointed to the job along with Jarden and UBS. 

Full-year results to June 30, 2025 showed revenue fell 5% to $825.2m. 

Reported group net profit of $29.2m included a $27.3m impact from the South Australian casino duty settlement, and compared with a loss of $143.3m in the prior period. 

Horizon by SkyCity is between TVNZ and the NZICC. Photo / Michael Craig 

Underlying group net profit of $71.5m excluded the impact of the South Australian casino duty settlement and the B3 costs, compared with $123.3m in the prior period 

Gaming revenue in Auckland was hit by the challenging market conditions and customer churn in the premium and VIP customer segments. 

The reduction was partially offset by the contributions from the Horizon by SkyCity Hotel since last August, and the carpark income due to the buyback of the carpark concession. 

SkyCity carparking is to be sold, in a second attempt. Photo / Janna Dixon 

SkyCity will also sell $200m of assets in the next year to 18 months, with key assets identified for divestment. 

That includes a second attempt to sell the Auckland carparks, as well as selling its own offices at 99 Albert St. 

The giant property owner would then rent its HQs. 

In 2023, SkyCity paid $204m compensation to finance giant Macquarie over a failed deal to offload its carparks in Auckland. 

Television cameras caught a loan shark working out of a SkyCity carpark. File picture 

That was a “mutually beneficial commercial resolution to the outstanding disputes with MPF Parking NZ in relation to a long-term concession agreement. 

In April 2019, SkyCity struck a long-term concession agreement with the Macquarie business, getting $220m but the October 2019 fire damaged the carparks which then could not be delivered on time. 

On Tuesday, the company declared a trading halt pending an announcement on a possible capital raise. 

Footage shows drone flying close to Auckland's Sky Tower during New Years Eve fireworks display, 2024/25. Photo / Supplied 

The dual-listed casino operator said on August 19 it expects to make a “material announcement” regarding a capital raise, together with its financial results. 

The Australian newspaper said there had been talk in the investment community that the Auckland-based casino operator could make a cash call to fund managers this week. 

The paper said the capital raise could potentially secure a sum in the ballpark of A$200m ($337m) to replenish its balance sheet. 

In May, SkyCity said it expected June year earnings before interest, tax, depreciation and amortisation to fall to about 4% below the bottom of the guidance range of $225m to $245m. 

Andy Bowley and Paul Laxton Koraua, Forsyth Barr analysts, noted in June that SkyCity’s “other regulatory challenges persist”. 

Their analysis, headed Firing up legal proceedings, cited the Adelaide casino. 

They were reacting to the company suing Fletcher Building for $330m, seeking damages for losses due to delays finishing the NZ International Convention Centre. 

SkyCity Adelaide put profits before compliance historically but has since changed how it operates. Photo / Joe Nes 

On August 13, the Herald reported how SkyCity Adelaide historically put profit ahead of compliance, according to an independent report’s findings out yesterday, although significant changes have since been made. 

Retired Australian Supreme Court Judge Brian Martin, AO, KC, found past failures and ongoing issues at the business owned by the company. 

But he also decided that it could continue to hold South Australia’s only casino licence. 

Significant changes were made at SkyCity, which last year paid a A$67 million ($73.42m) fine for breaching anti-money laundering/countering financing terrorism laws in Adelaide. 

Martin found examples of culture which he said prioritised revenue over regulatory compliance. 

Anne Gibson has been the Herald‘s property editor for 25 years, written books and covered property extensively here and overseas.