Skycity Entertainment Group Limited · NZX:SKC
Skycity Entertainment — H1 2025 Earnings Presentation
34 slides from Skycity Entertainment's earnings presentation, Feb 20, 2025
Slide 1: First Half 2025 Results
FIRST HALF 2025 RESULTS 1H25 INVESTOR PRESENTATION | 20 FEBRUARY 2025 THE ULTIMATE EXPERIENCE IN ENTERTAINMENT
Slide 2: Important Notice
IMPORTANT NOTICE • All information included in this presentation is provided as at 20 February 2025. This disclaimer applies to this document and the verbal or written comments of any person presenting it. • The information in this presentation has been prepared by SkyCity with due care and attentio
Slide 3: Contents
CONTENTS GROUP FINANCIAL OPERATING OVERVIEW RESULTS PERFORMANCE OUTLOOK APPENDICES JASON WALBRIDGE PETER FREDRICSON CALLUM MALLETT JASON WALBRIDGE CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER CHIEF OPERATING OFFICER CHIEF EXECUTIVE OFFICER page 3 page 10 page 15 page 22 page 26 2 SKYCITY 1H25 | I
Slide 4: Overview
OVERVIEW JASON WALBRIDGE | CHIEF EXECUTIVE OFFICER
Slide 5: 1H25 Results Overview
1H25 RESULTS OVERVIEW Strong visitation amid market challenges REPORTED/UNDERLYING 1 1H25 REVENUE BY T YPE REVENUE $422M (5%) PCP 2 Non-Gaming 29% Food and beverage 14% Hotels 8% Entertainment and other 7% Gaming 71% REPORTED/UNDERLYING UNDERLYING REPORTED UNDERLYING EBITDA NPAT NPAT EPS $113M (22%)
Slide 6: Visitation and Spend
VISITATION AND SPEND 1H25 1H24 Group Visitation 5.4m 5.1m Group Underlying EBITDA 1 $113.1m $144.3m Group EBITDA/Visitation 2 ~$21 ~$28 Difference $7/visit • Key business drivers include visitation, spend per visit and costs • Spend per visit leads into EBITDA per visit and at a Group level this has
Slide 7: Evolving for the Future
EVOLVING FOR THE FUTURE CHANGING LANDSCAPE HOW WE ARE RESPONDING Internal regulatory reset has increased compliance costs Multi-year risk transformation program to retain our gaming and impacted revenue and social licences Historical capital investments, previously targeted at Recycling capital thro
Slide 8: Delivering Value and Enabling Growth
DELIVERING VALUE AND ENABLING GROWTH Learn from the PAST, make the most of NOW, and create an exciting FUTURE for SkyCity STRATEGIC PRIORITIES CORE BUSINESS OPTIMISATION CUSTOMER FOCUS ONLINE GAMING Make the most of our existing assets to help grow Engage our customers with amazing experiences, Use
Slide 9: Strengthening Our Future Through Action
STRENGTHENING OUR FUTURE THROUGH ACTION $4.8M in community Delivering on our priorities in 1H25 contributions, sponsorships and donations in 1H25 CORE OPERATIONS CUSTOMER FOCUS ONLINE GAMING Asset review completed, monetisation Engaged with government on global best Delivered gaming system upgrade a
Slide 10: Risk Transformation
RISK TRANSFORMATION GOVERNANCE, BOARD RISK AND COMPLIANCE RE-ESTABLISHING EXECUTIONAL CULTURE CONDUCT ADELAIDE B3 AND MANAGEMENT MANAGEMENT TRUST ENABLEMENT • Board Transformation • Independent third • SkyCity Integrated Risk • New code of conduct • Monthly/quarterly • Facial recognition long • Dedi
Slide 11: Group Financial Results
GROUP FINANCIAL RESULTS PETER FREDRICSON | CHIEF FINANCIAL OFFICER
Slide 12: 1H25 Group Results
1H25 GROUP RESULTS Financial performance reflects challenging trading conditions $M 1H25 1H24 1 • Total revenue lower due to a 12% reduction in Auckland gaming revenue, partially offset by: Total Revenue 2 422.0 442.8 (5%) – Gaming revenue growth in Adelaide and Queenstown (up 5% and 4% respectively
Slide 13: Solid Balance Sheet
SOLID BALANCE SHEET $309 M available liquidity 31 DEC 24 30 JUN 24 • Leverage ratio of 2.8x well within banking Net debt to EBITDA 2.8x 2.3x covenants and consistent with BBB- Total drawn debt $722.4m $663.1m credit rating from S&P Global Ratings Available liquidity (cash and undrawn facilities) $30
Slide 14: Solid Operating Cashflow
SOLID OPERATING CASHFLOW • Cashflow from operations $78m (excluding regulatory penalties of $76m) • The business continues to generate positive cash flow from operations across the board, reinforcing a reliable and resilient financial model $428M ($268M) ($30M) $3M $78M ($76M) ($54M) $2M Receipts fr
Slide 15: Looking Beyond Current Factors
LOOKING BEYOND CURRENT FACTORS • Business performance is driven by visitation, spend per visit and costs FY25 PROFORMA EBITDA 1 FY25 EBITDA Add back anticipated Add back major Adjust for NZICC Adjust for Less assumed FY25 PROFORMA (forecast) FY25 risk and digital project investments visitation uplif
Slide 16: Operating Performance
OPERATING PERFORMANCE CALLUM MALLETT | CHIEF OPERATING OFFICER
Slide 17: Auckland: Resilient Visitation Amid Softer Spending
AUCKLAND: RESILIENT VISITATION AMID SOFTER SPENDING Gaming KEY OPERATING METRICS 1H25 1H24 • 1H25 visitation was 7% lower, primarily due to the prior period Gaming benefiting from the World Cup Visitation 1.01m 1 1.09m (7%) • WPUPD and WPOH down reflecting weaker market conditions EGM WPUPD $424 $44
Slide 18: NZICC: Set to Boost Auckland Visitations
NZICC: SET TO BOOST AUCKLAND VISITATIONS 10 % INCREASE An expected 500k additional visitors annually to the precinct • NZICC opening Feb 26 with pre-opening activities to commence in the second half of calendar 2025 following handover from the Contractor, including: – 1H26: Installations, testing an
Slide 19: Hamilton and Queenstown: Solid Operating Performance
HAMILTON AND QUEENSTOWN: SOLID OPERATING PERFORMANCE Gaming KEY OPERATING METRICS 1H25 1H24 • Visitation up 2% driven by increased tourism in Queenstown Gaming • WPUPD stable, with improvement in Queenstown offset by weaker Visitation 216k 212k 2% spend at Hamilton EGM WPUPD $383 $388 (1%) – Hamilto
Slide 20: Adelaide: Solid Visitation Growth
ADELAIDE: SOLID VISITATION GROWTH Gaming KEY OPERATING METRICS 1H25 1H24 • Visitation up 4%, supported by major Adelaide events Gaming • WPUPD and WPOH slightly up reflecting increased visitation and improved Visitation 570k 547k 4% hold rates, partially offset by changes in customer composition EGM
Slide 21: Online: Building Capability
ONLINE: BUILDING CAPABILITY • Significant growth potential in a regulated online market • Ambition to be a top 4 operator (subject to securing licences in the regulated market) PLATFORM AND CAPABILITY GROW MARKET SHARE 2024 2025 2026+ • Established office in Malta • Optimise current .com offshore op
Slide 22: MCP: Carded Play Programme
MCP: CARDED PLAY PROGRAMME Preparing for a seamless customer experience • Planning for 100% carded play across NZ by Jul 25 (Adelaide early 26) BENEFITS OF CARDED PLAY • Reflects our proactive approach to risk and customer care Enhanced customer loyalty opportunities • Incorporating industry learnin
Slide 23: Outlook
OUTLOOK JASON WALBRIDGE | CHIEF EXECUTIVE OFFICER
Slide 24: Revised FY25 Outlook
REVISED FY25 OUTLOOK • Based on the 1H25 result and the expectation of continued economic weakness, we take the view that a lower range of EBITDA is likely in FY25 • Revise previous FY25 Underlying Group EBITDA guidance to between $225m and $245m (previously $245m and $265m) – Impacted by lower cust
Slide 25: Supporting Growth and Returns to Shareholders
SUPPORTING GROWTH AND RETURNS TO SHAREHOLDERS IME G R OWT H OVER T OF EARNINGS DRIVERS 1. ECONOMIC RECOVERY 2. NZICC 3. GROW ONLINE Increased customer spend Increased visitation Grow online channel customers Increased visitation Cross spend opportunities Ambition to be a top 4 operator Margin improv
Slide 26: SkyCity Investment Proposition
SKYCITY INVESTMENT PROPOSITION Platform for success and growth SIGNIFICANT GAMING OWN AND OPERATE WORLD CLASS GROWTH FINANCIAL RETURN OPERATOR IN NZ AND AU INTEGRATED RESORTS OPPORTUNITIES PROFILE ASX/NZX listed casino operator World class gaming, entertainment Improved economic conditions Attractiv
Slide 27: Appendices
effeye sk CITY @ ENTERTAINMENT GROUP APPENDICES
Slide 28: SkyCity Overview
SKYCITY OVERVIEW HAMILTON AUCKLAND AND QUEENSTOWN ADELAIDE ONLINE (MALTA) Operated since 1996 2002 & 2000 2000 2019 Gaming licence expiry 2048 2027 Hamilton 2085 (exclusive to 30 June 2035) 2025 Queenstown 1 Gaming licences total 1,877 EGMs 425 EGMs 1,500 EGMs 390 Table games 35 Table games 200 Tabl
Slide 29: Group Results
GROUP RESULTS 1H25 1H25 REVENUE REVENUE BY BY SEGMENT 2 $M 1H25 1H24 SEGMENT 2 Auckland 258.3 280.6 Hamilton and Queenstown 38.3 38.8 Adelaide 123.2 116.8 Online 2.1 5.6 Auckland 61% Auckland 61% Corporate 0.1 1.1 Hamilton & Queenstown 9% Hamilton & Queenstown 9% Adelaide 29% Total underlying revenu
Slide 30: Underlying Profit to Reported Result Reconciliation
UNDERLYING PROFIT TO REPORTED RESULT RECONCILIATION 1H25 1H24 (RESTATED) 1 $M REVENUE EBITDA EBIT NPAT REVENUE EBITDA EBIT NPAT Reported Results 422.0 113.1 67.8 6.1 445.2 101.0 56.7 22.5 Remove impact of NZICC Fire Accounting – – – – (2.4) 5.5 5.5 4.2 Remove AUSTRAC regulatory penalty – – – – – 37.
Slide 31: Operating Results by Segment
OPERATING RESULTS BY SEGMENT HAMILTON AND 1H25 GAMING REVENUE AUCKLAND QUEENSTOWN ADELAIDE ONLINE CORPORATE TOTAL BY TYPE $M 1H25 1H24 1H25 1H24 1H25 1H24 1H25 1H24 1H25 1H24 1H25 1H24 Gaming machines 118.3 127.9 26.0 26.4 50.3 46.6 0.0 0.0 0.0 0.0 194.6 200.9 Table games 57.1 66.4 7.0 6.5 30.3 29.1
Slide 32: Debt and Liquidity
DEBT AND LIQUIDITY DEBT FACILITIES $M DRAWN DEBT SOURCES Maturity Total Facility Amount Type date amount amount drawn Undrawn USPP Mar-28 65.4 AUD 72.1 NZ 72.1 NZ – USPP Feb-30 75.0 US 129.0 NZ 129.0 NZ – USPP 67% NZ Bond 26% USPP Sep-31 150.0 US 246.9 NZ 246.9 NZ – Bank 7% NZ Bond May-27 175.0 NZ 1
Slide 33: Important Information
IMPORTANT INFORMATION • Average NZ$ vs. A$ cross-rate for 1H25 = 0.9122 and 1H24 = 0.9246 GLOSSARY • Weighted average number of shares excludes executives’ shares held on trust under the Group’s executive AML Anti-money laundering and counter terrorism financing incentive schemes: – 1H25 = 759,218,9
Slide 34: Thank You
THANK YOU 1H25 INVESTOR PRESENTATION | 20 FEBRUARY 2025 CONTACT Craig Brown Head of Investor Relations Craig.Brown@skycity.co.nz
SkyCity Entertainment Group — H1 2025 Earnings Presentation on 6ix