SkyCity Records Decreasing Revenue In 2020-2021 Financial Year

SkyCity Entertainment Group, the company that owns and operates five land-based casinos in Australia and New Zealand, has released its financial report for the 2020-2021 fiscal year and the records show decreasing revenue.

The operator has announced revenue figures of 959.2 million dollars for the 2020-2021 financial year, a number that represents a decrease of 17.6 percent compared to the previous year.

The revenue figures coming from gaming in the company’s casinos actually went up from 530.8 million dollars to 579.6 million dollars, while non-gaming revenue amounted to 127.8 million dollars. The company also brought in online revenue of 13.1 million dollars, while the New Zealand International Convention Centre generated revenue of 170.7 million dollars.

The company’s best performing venue was SkyCity Auckland, which brought in 649.6 million dollars. The Adelaide casino generated 196.9 million dollars, while the other operations in New Zealand added revenue of 89.8 million dollars.

SkyCity’s business suffered significant losses due to local lockdowns in New Zealand and Australia. Last year, the company’s casino in Adelaide was forced to close its doors on several occasions. The most recent lockdown has closed the company’s venues in Auckland and Hamilton.

Upon the release of the company’s financial results for 2020-2021, SkyCity chairman Rob Campbell described the year as “complicated” due to property closures and several other restrictions due to the novel coronavirus pandemic.

Taking those factors into account, it is difficult to compare 2020-2021 to any other year in the company’s history. However, the SkyCity executives admitted that the company was helped by the Government with wage subsidies and other protective measures.

The company’s expenses during the last financial year amounted to 641.9 million dollars, so profits before income tax were 193.5 million dollars. That is a better result compared to the previous year, when SkyCity reported a loss of 28.5 million dollars.

“The Group delivered a solid financial performance, despite the challenging operating environment,” Michael Ahearne, the Chief Executive Officer of SkyCity Entertainment, said. “Local gaming has performed well when open and operating without restrictions while our tourism-related businesses, including hotels, food and beverage and International Business, had a weaker result primarily due to ongoing international and domestic border closures.”

Source: “SkyCity records revenue decrease as net profits fall in 2020-21“. iGamingBusiness. August 25, 2021.