SkyCity Entertainment Group is a well-known entertainment and gambling company from New Zealand which owns five properties in NZ and Australia where visitors can not only play casino games but also visit bars and restaurants, stay in luxury hotels, and enjoy their leisure listening to music or holding meetings in convention centers.
The first SkyCity casino was launched in Auckland in February 1996 and since then has entered the market in Adelaide, Hamilton, Darwin, and Queenstown. SkyCity’s shares are traded on the New Zealand and Australian Stock Exchanges.
Here is a brief overview of SkyCity in numbers:
- 22 restaurants;
- 20 bars;
- 5 casinos;
- 4 hotels;
- 1 online gambling site.
Even though land-based casinos prevail, their online platform also deserves attention. Check out the full SkyCity review and other CasinoHEX brands with the biggest payout percentage to choose the best casinos for you.
SkyCity’s financial conditions
Recently, SkyCity Entertainment Group scaled down its earnings for the fiscal year. The loss of Adelaide’s casino value was named the main reason. Their fiscal years end in June, and the company’s representatives stated that their expected earnings are similar to the previous year – between $142.9 million – $144 million (compared to $138 – $145 in the prior fiscal year).
The lower estimated revenue is explained by higher insurance payouts after the damage to the Horizon Hotel and International Convention Center in October.
Let us remind you, that the fire broke out on October 22, 2019, on the roof of the International Convention Center in Auckland. The place wasn’t open to the public and was occupied by builders. The fire continued to burn for more than 48 hours, and authorities asked locals to stay as far away from the center as possible.
The official reason wasn’t determined, but the media think that the blowtorch, left on the roof by accident, was the cause. SkyCity Entertainment Group officials didn’t comment on the situation and kept the name of the insurer secret. However, the repair will cost millions of dollars, and the center won’t open until 2021.
The possible earnings increase was compensated by the lower book value of the casino in Adelaide. According to an updated report from EBITDA, the revenue is expected to reach $252 million compared to $318 million. This means that the net profit after paying taxes will equal $169 – $170 million compared to $238- $260 indicated in June’s report.
According to the company’s representatives, lower earnings from Adelaide’s Casino weren’t easy to predict due to the pandemic and the absence of business activity. Very likely that it will take them years to recover. According to the local restrictions, SkyCity’s Auckland casino is still closed until further instructions on the lockdown are given.
SkyCity’s locations
SkyCity can boast five offline and one online casino, each of which is a real state-of-the-art. Let us tell you more about their properties across New Zealand:
- Adelaide. This casino was bought by the SkyCity Group in 2000 and can boast almost 1000 machines and 90 tables. It is the only representative in the area to have a license from the South Australian Government, which makes Adelaide casino a monopolist;
- Auckland. There are three casinos at the moment: SkyCity Auckland, Skycity Hotel, and SkyCity Grand Hotel. The first casino is the largest in the SkyCity group and has been operating since 1996. It offers more than 1600 machines and 1100 game tables. The building consists of a Sky Tower 328 meters high, two hotels, a theatre, a convention center, over 20 bars, restaurants, DJ areas, and other entertainment places.
- Hamilton. The newest casino of the group, Hamilton, opened its doors in 2002 and offers 340 slot machines and 22 tables. Visitors can spend their time in restaurants, bars, and a bowling area;
- Queenstown. There are only two casinos in the Queenstown area, and both of them are owned by Skycity. They opened in 2000 and contain 160 machines and almost 20 tables.
Leader in the global gambling arena
The modern state of affairs has significantly changed the market and the way operators behave. However, SkyCity Entertainment Group remains one of the gaming industry leaders and knows how to overcome problems. Hopefully, all their facilities will soon reopen, attracting millions of players and businesses from all over the world as it has been before.
About the author: Maia Hall is an Igaming professional working at NZCasinoHex. She’s been involved in the industry for the past seven years and has gained a lot of valuable experience from working with different game providers.