Graeme Stephens of SkyCity, shutting in Adelaide. Photo / File
Graeme Stephens of SkyCity, shutting in Adelaide. Photo / File
The Australian Government's lockdown has resulted in SkyCity Entertainment planning to shut its Adelaide Casino by midday today but its properties throughout New Zealand remain open.
SkyCity also withdrew its updated earnings guidance for the year to June 30, 2020, referring to a change in circumstances given Adelaide's closure.
GraemeStephens, Auckland-based chief executive, said that as a result of the government across the Tasman calling for the immediate closure of all licensed clubs, pubs, cinemas, casinos, nightclubs and churches, the Adelaide property must shut.
SkyCity employs around 4000 people in New Zealand and around 1000 at its riverside location in an historic Adelaide railway station.
"We respect the Australian Government's decision to close the Adelaide Casino in order to combat the spread of Covid-19," Stephens told the NZX this morning.
SkyCity's Auckland, Hamilton and Queenstown outlets remain open, SkyCity announced, referring to the current Level 2 response to the virus.
But it could close all New Zealand venues if that changed.
"SkyCity is preparing for the potential closure of its New Zealand properties should the Government raise the Covid-19 alert level. We are working through what the implications may be for our 4000 employees in New Zealand," Stephens said.
Shares in the entertainment business fell to an all-time low $1.25 this morning, and were recently down 17.1 percent at $1.26, valuing the company at $840.7m.
SkyCIty predicted earnings before interest, tax, depreciation and amortisation guidance for the 12 months ending June 30 of $230m-$250m and normalised net profit of $85m-$100m.
Adelaide generated $7m in revenue in the six months to December 31, and $13.1m in normalised ebitda.
