SkyCity lowers FY26 earnings outlook amid macro pressure and rising costs

SkyCity Entertainment Group has revised down its FY26 earnings guidance, pointing to weaker consumer demand, ongoing macroeconomic pressure, and higher operating costs across New Zealand and Australia, according to a market update released on May 1.

The group now expects underlying EBITDA for FY26 to be between NZ$180 million and NZ$190 million (US$106 million-US$112 million), down from its earlier forecast of NZ$190 million-NZ$210 million. Reported EBITDA is also expected to fall to NZ$155 million-NZ$165 million, compared with the previous range of NZ$170.6 million-NZ$190.6 million.

As of March 2026, SkyCity Entertainment Group reports that its trading conditions have weakened, which is primarily due to rising fuel prices and reduced discretionary spending on visits to its Auckland and Adelaide properties. It also indicated that its outlook for the remainder of this financial year is uncertain.

The company has stated there is “significant uncertainty” over the continued macroeconomic conditions. If conditions continue to worsen, they believe their performance could also continue to be affected.

The company has reacted by accelerating cost-control initiatives and has exceeded their previously announced NZ10 million savings target for FY26. Now, the company is establishing additional efficiency measures across operational and corporate functions, with assistance from third parties.

SkyCity also provided an update on its asset monetisation strategy, confirming that it has reached a non-binding agreement for the potential sale of its 99 Albert Street office building and other investment property located on Victoria Street. In addition, SkyCity is explore whether there is any interest in The Grand Hotel.

Finally, SkyCity confirmed that New Zealand’s Online Casino Gambling Act came into force on 1 May 2026 and as a result the licensing process is expected to commence from the beginning of 2027.