SkyCity forecasts its full year profit for the year ending June to be down between $10m and $25m. Photo: RNZ / Marika Khabazi
Casino operator SkyCity says full year profit will be down on expectations, amid tough economic conditions, particularly in Auckland, which are expected to continue into the next financial year.
While customer numbers remained strong, spending was down at its hotels, bars, restaurants and casino.
Another delay in the opening of the Horizon Hotel, adjacent to the International Convention Centre in Auckland, was also contributing to the downturn - now expected to open in August.
SkyCity expected full year underlying profit to be down for the year ending June by between $10 million and $25m from an earlier forecast to $280m to $285m.
Bottom-line net profit was forecast to be down between $5m and $10m to $120m and $125m.
It also suspended its dividend payout to shareholders.
The company also warned the outlook was subject to a number of regulatory reviews and penalties which could add to costs, such as the potential for an increase in duty expenses at the Adelaide casino and the potential of a temporary suspension of its operator's licence at New Zealand casinos, with a decision set down for August.
SkyCity estimated underlying profit for the 2025 financial year would be between $250m and $270m including potential one-time costs, noted above, of about $20m to $30m.