Want to see NZ:SKC full AI Analyst Report?
Top Page
SKYCITY Entertainment Group Limited
(SKC)
Select Model
Select Model
Rating:50Neutral
Price Target:
$0.67
▼(-1.47% Downside)
Action:N/A
Date:10/05/26
The score is held back primarily by weakened financial performance and cash-flow quality (negative free cash flow and margin compression). Technical signals are modestly supportive in the near term, but valuation remains stretched with a high P/E. Earnings-call messaging is balanced: credible asset sales and cost-out plans help, yet near-term macro pressure, elevated leverage, and execution risk keep overall conviction moderate.
Positive Factors
Diversified integrated precinct revenue
The integrated precinct model provides multiple revenue streams beyond gaming, including hotels, food and beverage, and events. Recent non-gaming growth offset a gaming decline, demonstrating diversification that can support resilience and improve revenue quality over the next several quarters.
Negative Factors
Weaker profitability and cash conversion
Revenue contraction, sharply lower margins, and volatile earnings indicate reduced operating leverage and weaker profitability than in earlier years. Negative recent free cash flow further shows that accounting profit is not consistently converting into funds available for debt reduction or reinvestment.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified integrated precinct revenue
The integrated precinct model provides multiple revenue streams beyond gaming, including hotels, food and beverage, and events. Recent non-gaming growth offset a gaming decline, demonstrating diversification that can support resilience and improve revenue quality over the next several quarters.
Read all positive factors
SKYCITY Entertainment Group Limited (SKC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$739.05M
Dividend Yield6.45%
Average Volume (3M)1.57M
Price to Earnings (P/E)38.4
Beta (1Y)0.35
Revenue Growth-1.23%
EPS Growth-50.97%
CountryNZ
Employees4,689
SectorConsumer Cyclical
Sector Strength84
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)0.02
Shares Outstanding1,103,055,000
10 Day Avg. Volume812,640
30 Day Avg. Volume1,566,242
Financial Highlights & Ratios
PEG Ratio-0.58
Price to Book (P/B)0.37
Price to Sales (P/S)0.75
P/FCF Ratio-49.82
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.02
Revenue Forecast (FY)$830.03M
SKYCITY Entertainment Group Limited Business Overview & Revenue Model
Company Description
SkyCity Entertainment Group Limited, known by its ticker SKC.NZ, operates as a diversified entertainment and leisure conglomerate across both New Zealand and Australia. Its extensive business encompasses various sectors including gaming, hospitali...
How the Company Makes Money
SKYCITY generates revenue primarily by operating casino gaming floors and earning gaming win (the net amount retained by the casino after paying out customer winnings) across table games and electronic gaming machines. In addition to gaming, the c...
SKYCITY Entertainment Group Limited Earnings Call Summary
Earnings Call Date:Aug 19, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Feb 25, 2027
Earnings Call Sentiment Neutral
The call presented a balanced picture: management delivered on updated guidance and highlighted tangible positives — NZICC momentum, a clear asset‑sale program (NZ$275m–300m target), a disciplined cost‑out plan (NZ$30m in FY'27 rising to NZ$70m in FY'28), improved notional free cash flow and a material online market opportunity (estimated ~NZ$1.4bn). Offsetting these are meaningful near-term challenges: sizeable accounting write‑downs and provisions (including an AUD21m fine), a significant decline in reported EBITDA, gaming revenue weakness (down 5.9%), macro-driven discretionary spend pressure (~NZ$20m Q4 impact), elevated leverage (3.1x) and execution/timing risk around remediation, Adelaide strategic outcomes and online license costs. Overall the company has clear remediation and value-restoration plans but faces material near‑term headwinds and accounting volatility.Positive Updates
Met Updated Earnings Guidance (Underlying EBITDA)
Delivered underlying EBITDA of NZ$181.6m, in line with May guidance (despite being down 22.3% year-on-year or NZ$52.1m), showing management hit the revised target.
Negative Updates
Significant Accounting Charges and Write-Downs
Several large non-operating items hit reported profit: derecognition of deferred tax assets (NZ$32.5m charge), write-down of Adelaide carrying value (AUD42.9m / NZ$52.2m), impairments on Auckland properties (NZ$10.3m write-down and NZ$6.1m fair value loss), and other adjustments affecting reported earnings.
Read all updates
Q4-2026 Updates
Positive
Negative
Met Updated Earnings Guidance (Underlying EBITDA)
Delivered underlying EBITDA of NZ$181.6m, in line with May guidance (despite being down 22.3% year-on-year or NZ$52.1m), showing management hit the revised target.
Read all positive updates
Company Guidance
SkyCity reiterated it met its updated FY26 underlying EBITDA guidance of NZ$181.6m (reported EBITDA NZ$120.5m) and gave forward-looking targets and parameters: an asset‑monetization program expected to deliver gross proceeds of NZ$275–300m by Dec‑2026 (including NZ$74.5m from 99 Albert/Victoria St settling Sep‑2026), a cost‑out program targeting NZ$30m of realized benefits in FY27 rising to NZ$70m in FY28 (with a potential 200–250 roles impacted), a target to reduce net debt to below 2.0x debt‑to‑EBITDA by end FY27 (current covenant 3.1x), FY27 capital expenditure of NZ$80–100m (including NZ$10m NZICC retention and ~NZ$8m for Adelaide railway work), NZICC to approach breakeven EBITDA in FY27 and reach breakeven in FY28 (NZICC hosted 141 events and ~100,000 visits in FY26 with a FY27 pipeline ~350,000 visits), Carded Play having a NZ impact in line with the previously guided NZ$20–30m EBITDA headwind, an estimated ~NZ$20m EBITDA hit in Q4 FY26 versus Q3 due to the Middle East/fuel shock continuing into early FY27, plans to bid in the online license auction in Sep for a market the DIA estimates at ~NZ$1.4bn (operators to be live by 1 Jun 2027), and no FY27 earnings guidance provided given macro uncertainty.SKYCITY Entertainment Group Limited Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
63
Positive
Cash Flow
38
Negative
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 759.90M | 824.51M | 861.04M | 855.78M | 553.54M |
| Gross Profit | 210.46M | 420.16M | 798.16M | 796.27M | 519.40M |
| EBITDA | 125.07M | 201.10M | 144.49M | 172.35M | 99.43M |
| Net Income | 18.23M | 29.23M | -143.35M | 7.97M | -33.59M |
Balance Sheet | |||||
| Total Assets | 2.60B | 2.76B | 2.78B | 2.86B | 2.74B |
| Cash, Cash Equivalents and Short-Term Investments | 114.42M | 51.50M | 60.54M | 245.01M | 48.70M |
| Total Debt | 719.34M | 809.01M | 730.93M | 691.37M | 650.48M |
| Total Liabilities | 1.06B | 1.43B | 1.48B | 1.33B | 1.17B |
| Stockholders Equity | 1.55B | 1.33B | 1.30B | 1.53B | 1.57B |
Cash Flow | |||||
| Free Cash Flow | -11.45M | -116.43M | -100.11M | -11.12M | 53.98M |
| Operating Cash Flow | 91.52M | 45.16M | 203.57M | 280.10M | 91.12M |
| Investing Cash Flow | -113.67M | -94.70M | -319.41M | -51.44M | -31.68M |
| Financing Cash Flow | 55.07M | 40.50M | -68.64M | -32.35M | -60.68M |
SKYCITY Entertainment Group Limited Technical Analysis
Positive
0.68
Price Trends
0.64
Positive
0.59
Positive
0.70
Negative
Market Momentum
<0.01
Positive
53.11
Neutral
60.61
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NZ:SKC, the sentiment is Positive. The current price of 0.68 is above the 20-day moving average (MA) of 0.66, above the 50-day MA of 0.64, and below the 200-day MA of 0.70, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 53.11 is Neutral, neither overbought nor oversold. The STOCH value of 60.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NZ:SKC.
SKYCITY Entertainment Group Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $615.76M | 19.33 | 5.14% | 4.44% | -9.00% | ― | |
54 Neutral | $676.57M | 17.57 | 12.23% | 4.30% | 9.03% | -2.47% | |
51 Neutral | $222.75M | 21.38 | 3.61% | 10.26% | -1.92% | ― | |
50 Neutral | $739.05M | 38.35 | 1.17% | 6.45% | -1.23% | -50.97% | |
48 Neutral | $133.88M | -0.32 | -79.57% | 4.56% | 6.47% | -193.50% | |
45 Neutral | $8.83M | 20.98 | -17.64% | ― | 90.03% | -53.08% |
* Consumer Cyclical Sector Average
NZ:SKC
SKYCITY Entertainment Group Limited
0.68
-0.03
-4.26%
NZ:WHS
Warehouse Group
0.70
-0.08
-9.74%
NZ:KMD
KMD Brands Limited
1.91
-2.38
-55.51%
NZ:TRA
Turners Automotive Group Ltd
7.38
0.62
9.20%
NZ:THL
Tourism Holdings Limited
2.80
0.21
8.15%
NZ:CCC
Cooks Coffee Company Limited
0.13
-0.08
-38.10%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.