SKYCITY Entertainment proposes $95m impairment

Company News

by Jessica Amir

SKYCITY Entertainment (ASX:SKC) has proposed an impairment of Darwin’s goodwill of $95 million.

SKYCITY will also reduce the book value of the Darwin property to $195 million as at 30 June 2017.

The $95 million impairment corresponds to the full value of the goodwill recognised when SKYCITY purchased the Darwin property in 2004.

The company says its proposing to write-off Darwin’s goodwill, on the back of increased competitive pressures in the gaming machine business.

The pressures came after the previous Northern Territory Government’s decided to scrap the cap on gaming machines in the Northern Territory.

As a result, 75 per cent more gaming machines have hit the market in Darwin (outside of the casino).
 
Shares in SKYCITY Entertainment (ASX:SKC) last traded flat at $3.97.
 

Jessica Amir

Finance News Network
Jessica joined FNN in January 2017 after having worked in financial advising for seven years and in TV journalism for seven years, specialising in finance, equities and analysis. She has interviewed former Prime Ministers of Australia, Tony Abbott, Julia Gillard and Kevin Rudd and ex Treasurer Jo Hockey. Jessica has worked as a journalist with Sky News Business, ABC 1, ABC's The Business, ABC24 and has also been a regional Channel 7 and 9 TV reporter with Prime7 and Win News.