SkyCity Entertainment Group has reiterated its annual earnings guidance but chief executive Jason Walbridge said the broader economic environment remained challenging.
The company’s annual meeting held in Auckland today heard Walbridge more upbeat about 2027 than 2026.
“FY26 is likely to be the trough year for our earnings and we remain positive about the outlook for FY27,” Walbridge told shareholders.
The company has forecast earnings before interest, tax, depreciation and amortisation (ebitda) for the year to June 30, 2026 to be $190 million to $210m.
“Although the broader economic environment remains challenging, there are early signs of stabilisation in the New Zealand economy. That said, trading across our New Zealand precincts in the first three months of FY26 has not revealed any noticeable improvement in consumer spending,” Walbridge said.
The number of people visiting SkyCity’s properties in Adelaide, Auckland, Hamilton and Queenstown remained strong, Walbridge said.
Company restaurants and bars had served 4.2m people and hotels had 280,000 room nights occupied.
SkyCity also had a solid pipeline of events planned for the new NZ International Convention Centre (NZICC), opening in February.
The NZICC would contribute to previous guidance in the second half of FY26, Walbridge said.
Forward bookings were encouraging and would support Auckland and New Zealand’s visitor economy, Walbridge said.
“As is typical for a project of this scale and complexity, some work will continue post-handover. We’re working closely with Fletcher Construction to finalise these remaining elements ahead of the opening in February 2026,” he said.
A shareholder asked why the company didn’t sell its Adelaide casino because it had never made money.
Chairman Julian Cook said it had made money but changes were being made there, yet there was still more to do before it was fully compliant.
“But I acknowledge returns to shareholders have been very poor,” Cook said of Adelaide.
Asked why SkyCity didn’t sell its Auckland buildings rather than raising $240m capital this year, Cook said it would have been left it with a large rental bill if it had done that.
Asked about resuming dividend payments, Cook said the board was mindful that shareholders had not got those. The share price was also down.
Selling $200m of assets was an aim, with a programme in the next 12 to 18 months.
Then Cook said the credit position should stabilise and the company should be in a position to recommence dividend payments.
Walbridge was bullish about the $330m litigation against Fletcher over the NZICC.
“The timeline for building completion has been disappointing and we’ve taken decisive action by filing legal proceedings against Fletcher Building to recover the significant losses incurred because of the delays,” Walbridge said.
The company is also still trying to sell its Auckland carparks, which Walbridge referred to as an opportunity to “recycle” approximately $200m of assets “to support our balance sheet and reduce debt”.
Walbridge said an update on the first half of trading in the 2026 year would be given at the half-year results.
“The year ahead will be pivotal. The NZICC will transform Auckland’s events market, our transformation programmes will strengthen our operations and the online gambling market will open new growth opportunities,” he said.
The company entered the next phase with confidence.
The Herald has reported 95 events planned at the NZICC next year but it has bookings through to 2028.
In addition to next year’s 95 events, 28 international conferences were confirmed for future years.
Heart rhythm specialists, school principals, coral reef scientists, dairy specialists, public health officials, pest managers and ecologists are some of the thousands booked to arrive soon.
Around 15,000 attendees are expected to attend 15 of next year’s 95 events at the centre built by Fletcher Construction.
In the June 30, 2025 year, SkyCity’s annual profit dropped 42% to $71.5m.
Revenue fell 5% to $825.2m. Reported group net profit of $29.2m included a $27.3m impact from the South Australian casino duty settlement, and compared with a loss of $143.3m in the prior period.
It went to the market for money, announcing in August a $240m equity raising.
In August, BusinessDesk reported investment firm Allan Gray had been planning to vote against any board reappointments if the capital raise went ahead.
Two directors, Kate Hughes and Glenn Davis were up for reappointment at the meeting.
Cook acknowledged some votes had already been exercised against these directors in protest at the capital raise, BusinessDesk reported today.
“We understand that some of our shareholders have voted against the election of one or both of our directors to hold the board accountable for the company’s recent equity raise, and we fully respect shareholders’ rights to do so,” Cook said.
“However, both Kate’s and Glenn’s contributions have been instrumental in guiding SkyCity through a period of significant market challenges and business transformation, and the board unanimously supports their reelection.”
Anne Gibson has been the Herald‘s property editor for 25 years, written books and covered property extensively here and overseas.