Photo: RNZ / Ziming Li
SkyCity's shareholders used this morning's annual meeting to vent disappointment and frustration about the casino operator's poor performance and costly regulatory missteps over the past few years.
Chair Julian Cook told shareholders it still had an outstanding regulatory issue to deal with at the Adelaide Casino, though its recent controversial $240-million capital raise had been critical in maintaining the business's investment grade credit rating.
"We understand the concerns raised by some shareholders about the timing and size of the raise. However, I want to be clear: this decision was made to protect the company's financial flexibility, preserve our BBB-minus investment-grade credit rating and safeguard our casino licences," Cook said.
Chief executive Jason Walbridge said the company's outlook was brighter with the second half of the financial year ending June 2026 expected to deliver underlying profit in line with August's guidance of between $170.6m and $190.6m, including one-time costs.
"Although the broader economic environment remains challenging, there are early signs of stabilisation in the New Zealand economy," Walbridge said.
"That said, trading across our New Zealand precincts in the first three months of FY26 has not revealed any noticeable improvements in consumer spending."
Still, he said there had been a steady number of visitors to the casino, while the opening of the NZ International Convention Centre in Auckland in February had generated a solid pipeline of related-events over the last four months of the current financial year.
The outlook for FY27 was also looking positive, though Walbridge was unable to provide guidance on the Adelaide business, given uncertainty about the outcome of the ongoing regulatory review there.
He said the Auckland business would support anticipated growth in FY27, with the long-awaited opening of the NZICC.
"We expect our online gaming activities will move from investment to operating mode (in FY27)," Walbridge said.
"Card of play should be well embedded . . . and we would expect to see the benefits of an improving New Zealand economy with higher spend levels."
Cook said SkyCity's $330m claim against Fletcher Building over delays in the completion of the NZICC and Horizon Hotel complex was likely to take years to work its way through the legal system.
Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
