SkyCity Entertainment Group Limited (SKC.ASX) announced on 1 May 2026 an update to its FY26 guidance, citing the ongoing impact of macroeconomic conditions on consumer discretionary spending across New Zealand and Australia. SkyCity Entertainment Group operates integrated entertainment complexes featuring casinos, hotels, and convention centres in Australasia. The company noted increased fuel prices since March 2026 have particularly affected trading and visitation at its Auckland and Adelaide precincts, contributing to uncertainty in the trading outlook for the remainder of the financial year.
Despite challenging economic environments, particularly in New Zealand, SkyCity reported exceeding its previously announced target of $10 million in cost savings for FY26. In response to current conditions, the group is now implementing additional cost-saving initiatives across its operations and corporate functions, engaging external advisors to support these efforts. Consequently, SkyCity now anticipates underlying EBITDA for FY26 to be in the range of $180 million to $190 million, down from its prior guidance of $190 million to $210 million. Reported EBITDA for FY26 is now expected between $155 million and $165 million, a revision from the previous range of $170.6 million to $190.6 million. This updated guidance is predicated on current trading conditions persisting, with significant uncertainty noted regarding the breadth and duration of prevailing macroeconomic factors.
In its asset monetisation programme update, SkyCity confirmed it has entered into a non-binding heads of agreement for the sale of the 99 Albert Street office building, along with investment properties on Victoria Street. This agreement remains subject to customary conditions, including due diligence and final documentation, with financial terms undisclosed. The company also announced it is seeking expressions of interest from potential investors for the acquisition of The Grand Hotel as part of its ongoing strategic asset review. Additionally, SkyCity acknowledged the Online Casino Gambling Act 2026 came into effect on 1 May 2026, with the Department of Internal Affairs expecting to issue licences from early 2027.
