Investors are ditching SkyCity’s stock as its gambling business becomes unpalatable for many. Its chairman addresses the major issues putting pressure on its price. Video / NZ Herald
Listed Australasian casino giant SkyCity Entertainment Group’s underlying profit dropped 8.5 per cent in its latest half-year and it has appointed Callum Mallett as interim chief executive when Michael Ahearne leaves next month.
The company made $66.5 million underlying net profit after tax for the half-year to December 31, 2023,down from $72.8m in the previous corresponding period.
Total revenue rose from $487m to $490.2m.
An interim dividend of 5.25cps will be paid on March 7.
Reported net profit after tax was down only 1.3 per cent to $22.5m.
The Department of Internal Affairs said this month it would prosecute SkyCity Entertainment Group and SkyCity Casino Management, which holds the licences for the Auckland, Hamilton and Queenstown operations.
The department alleges SkyCity breached the Anti-Money Laundering and Countering Financing of Terrorism Act.
The company, chaired by Julian Cook, said it was “disappointed” it had not met the standard to which it needed to hold itself.
Michael Ahearne, SkyCity Entertainment Group's chief executive. Photo / Peter Meecham
Charges were filed last Friday, the department’s chief saying it is important criminals don’t launder money in New Zealand.
“Casinos can be an attractive way for criminals to launder proceeds of crime,” said Mike Stone, the department’s group director of anti-money laundering and counter-terrorism financing.
“We cannot take the risk that criminals might choose New Zealand casinos as a way of cleaning their dirty money. Casinos must have robust processes in place to protect them from misuse,” Stone said.
The company’s full-year result for 2023 showed it was in a turnaround, with 2022′s loss turning into a profit although the business then acknowledged a “softer recovery” because electronic gaming revenue was still down on what it was pre-pandemic.
Yesterday, SkyCity shares were trading on the NZX around $1.87, down 28 per cent annually.
Anne Gibson has been the Herald’s property editor for 24 years, has won many awards, written books and covered property extensively here and overseas.
