Recovering revenues and tight cost control helped SkyCity's Auckland and Hamilton properties to generate positive cash flow since reopening. The company is still receiving the government wage subsidy with some staff unable to be deployed until alert level 1 takes effect.
Details coming
Prime Minister Jacinda Arden has been signalling she may fast track the move to level 1 following pressure from her coalition partner. The alert level will now be reviewed on June 8 and New Zealand could move to alert level 1 in the coming weeks. Ardern will provide details on how level 1 will operate later today.
SkyCity chief executive Graeme Stephens reiterated that the company expects to be a smaller, domestically focused business, and will go ahead with laying off 700 staff to keep the casino sustainable.
"Unfortunately, this remains necessary to ensure that SkyCity's businesses are sustainable in the medium and long term and can continue to support the thousands of jobs that will still remain," he said.
Stephens said a funding plan will be finalised in the next few weeks in order to support the business in the medium-term. SkyCity holds about $330 million of cash and undrawn debt facilities.
The shares rose 1.9 per cent to $2.67 at market open this morning, paring its loss this year to 34 per cent.