SkyCity Entertainment Group recorded weaker financial results for the six months ended 31 December 2025, as mandatory carded play in New Zealand and increased compliance spending weighed on earnings. Management nevertheless maintained full-year guidance and pointed to the recently opened New Zealand International Convention Center (NZICC) as a key contributor to second-half growth.

Revenue and Earnings Reflect Operational Shifts

Group-wide revenue declined by 2.4 percent in the first half of FY26. The company reported revenue of NZ$411.7 million, while another filing cited total revenue of NZ$406.5 million for the same period. The decrease was primarily driven by softer gaming performance, with total gaming revenue down 6.3 percent year over year.

Reported EBITDA fell 36.3 percent to NZ$71.1 million. Underlying EBITDA for the half stood at NZ$85.5 million, marking a 28 percent year-on-year reduction. Net profit after tax reached NZ$12.1 million, and the board did not recommend a dividend.

At SkyCity Auckland, gaming revenue dropped 9.2 percent to NZ$164.6 million. Non-gaming revenue at the flagship property rose 8.5 percent to NZ$83.5 million. The Hamilton and Queenstown casinos posted a combined 2.8 percent decline in gaming revenue to NZ$31.9 million. In Australia, SkyCity Adelaide reported a 4.0 percent fall in gaming revenue to AU$73.7 million, while non-gaming revenue increased 2.2 percent to AU$36.4 million.

Management attributed the downturn largely to regulatory and operational changes introduced during the period. As reported by Inside Asian Gaming, CEO Jason Walbridge stated on an earnings call that the gaming decline was “predominantly due to the introduction of Carded Play across our New Zealand casinos”, which went live in July 2025. Some previously uncarded customers exited or reduced their spending following implementation.

Walbridge also commented: “Visitation remained steady across the Group, with the small reduction due in part to changes in the way we measure visitation and the introduction of Carder Play. Revenue was down 2.4 per cent or $12.3m, with total gaming revenue down 6.3 per cent or $19m, with lower revenue across both gaming machines and tables. 

The lower gaming revenue was predominantly due to the introduction of card play across our New Zealand casinos that went live in July 2025, and pleasingly, is in line with our expectations and guidance. We also experienced a lower level of activity in premium play compared to the prior period. “

Compliance Costs and Customer Data Gains

In addition to softer gaming volumes, higher compliance expenditure affected margins. The company increased investment in anti-money laundering (AML) systems and host responsibility programs, particularly in Adelaide. Technology upgrades, one-off legal fees, and costs linked to the NZICC opening also contributed to higher expenses.

Walbridge said: “The increase in costs included increased investment across our AML and host responsibility areas, particularly in Adelaide, as I just mentioned, as well as costs associated with the opening of the NZICC and technology costs, some one-off legal fees, and higher costs of sale associated with the growth in non-gaming revenue.”

Management expects a stronger second half of FY26, supported by the NZICC, which opened on February 11th, 2026, with its first live event held the following day. More than 110,000 visitations are already confirmed for the remainder of the financial year.

CFO Peter Fredricson indicated that earnings would be weighted toward the second half, with an expected 43 percent to 57 percent split between first-half and second-half underlying EBITDA. SkyCity reaffirmed its full-year underlying EBITDA guidance of NZ$190 million to NZ$210 million.

In Adelaide, mandatory carded play is scheduled to begin in December 2026, with management estimating that 15 percent to 20 percent of current revenue is uncarded and therefore exposed during the transition.

The company also noted that New Zealand’s online gaming regulation timeline has shifted, with licenses now expected by December 1st, 2026. As a result, any meaningful contribution from online operations would move into FY2027.