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.