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SkyCity Entertainment reports 76% drop in revenues in 2nd half 2020

Feb 21, 2021

AUCKLAND, New Zealand – New Zealand’s SkyCity Entertainment Group reported a steep 76.1 percent decline in its half-year net profit, as the COVID-19 pandemic forced multiple property closures and dried up revenues from its international business.

In the six months to December 31, 2020, the company’s net profit fell to US$56.4 million, SkyCity reported.

It also saw a 99.9-percent drop in revenue from its international VIP business, though it recorded better-than-expected domestic performance, according to Inside Asian Gaming.

SkyCity’s group performance also saw losses due to COVID-19 disruptions, with revenues falling 37.7 percent to US$323.8 million, and EBITDA declining 62.6 percent to US$109.8 million.

Revenues at SkyCity’s flagship Auckland property, which closed temporarily in August and November last year due to coronavirus outbreaks, fell 24.5-percent to US$166.1 million.

In contrast, the company’s Australian casino, SkyCity Adelaide, performed strongly, reporting a 15.8 percent increase in revenues to US$67.0 million following its US$255.7 million expansion, which offset property closures during the reporting period.

The company’s online casino business also remained robust, with the number of registered users increasing by 2,700 to 24,400.

Revenues from the online casino business rose from US$144,000 in the first half of 2020 to US$5.4 million, while EBITDA moved from a loss of US$359.9 million to a profit of US$3.9 million.

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