Profits hit by upcoming AUSTRAC penalty
New Zealand’s SkyCity Entertainment Group released its full year financial report for the 12 months leading up to June 30th (FY23) showing a 44.9% year-on-year increase in group revenue to NZ$926.2 million ($551 million/€509.5 million).
According to the report, revenue growth was a result of a “strong rebound and recovery in trading” in its first full year without pandemic-related closures or restrictions.
The report also reveals a 7.1% increase in earnings before interest, taxes, depreciation and amortization (EBITDA) to NZ$165.9 million (US$98.7 million/€91.25 million). However, despite the strong revenue growth, the group’s net profit after tax of NZ$8.0 million (US$4.8 million/€4.4 million) was significantly impacted by the AU$45 million ($29.2 million/€26.6 million) set aside in relation to an upcoming penalty from the Australian Transaction Reports and Analysis Centre (AUSTRAC) as a result of license breaches at its Adelaide casino.
As a result, the group’s normalized net profit after tax came to NZ$138.8 million (US$82.5 million/€76.3 million).
Gaming revenue for FY23 increased by 51% year-on-year to NZ$759.4 million (US$452 million/€417.8 million). This was driven primarily by electronic gaming machines (pokies) making up 50% of gaming floor revenues for the year. This represents a 27% increase on pre-pandemic levels. Meanwhile, table games revenue grew by 50% year-on-year to NZ$231 million (US$137 million/€126.6 million) compared to the previous reporting period. However, this was a 11% lower than pre-pandemic levels.
SkyCity also reported that non-gaming revenue increased by 59% year-on-year to NZ$207.4 million (US$123 million/€113.7 million).
Chief Executive Officer Michael Ahearne said:
“We are pleased to have a full year of no interruptions which has meant SkyCity has rebounded strongly. It is a real credit to our entire team who have responded fantastically to the challenges and the complexities of the last few years to deliver a year where we are now ahead of pre-COVID levels.
The backbone of our business is our team who have been incredible this year – I want to acknowledge and thank them for their hard work.
I also want to thank our loyal customers who have continued to enjoy our precincts and we are excited about what we can offer them in the coming year.”
Speaking of SkyCity Adelaide, he added:
“SkyCity Adelaide has had a mixed year, with solid EGM and non-gaming revenues but has had cost pressures. Major new events such as AFL Gather Round and LIV Golf bolstered the hospitality sector, and we’re pleased that these events have been confirmed to return to South Australia.”
Image credit: Michael Coghlan / CC BY-SA 2.0
