TLDR
- SkyCity Entertainment Group has opened a structured review to seek proposals for its entire business after ongoing takeover interest.
- The board rejected two unsolicited, non-binding offers earlier in the year, calling them opportunistic.
- SkyCity has started a separate formal sale of its Adelaide casino, linked to an agreement that includes an A$21 million fine.
- The company plans to apply for two New Zealand online casino licenses, each costing NZ$15 million.
- Underlying EBITDA fell 22.3% to NZ$181.6 million in FY26, and the company is targeting a return to dividends in FY28.
SkyCity Entertainment Group has opened a formal review to seek proposals for its whole business. The New Zealand casino operator made the move after ongoing takeover interest from outside parties.
Chair Julian Cook shared the plan at the company’s annual shareholders’ meeting in Auckland on October 21. The company is also preparing to apply for two online casino licenses in New Zealand.
Earlier this year, the board turned down two unsolicited, non-binding proposals for the group. Cook said the board viewed those offers as opportunistic.
No new or improved offer for the whole business has arrived since then. However, Cook said interest in buying the group remains.
Advisers Named for Sale Review
SkyCity has hired UBS as its investment banking adviser for the review. Law firm Chapman Tripp will provide legal advice.
The board has also set up a Structured Review sub-committee to oversee the process. Interested parties will get access to selected due diligence information to help them build proposals.
Cook cautioned that the review does not guarantee a deal or an offer. It also does not mean the board has received a replacement for the offers it rejected earlier.
In a separate process, SkyCity has started a formal sale of its Adelaide casino. This follows a non-binding heads of agreement with South Australia’s Minister of Consumer and Business Affairs over outstanding regulatory matters.
That agreement includes a fine of A$21 million. The company first signaled its move toward an Adelaide sale in September.
Online Casino Licenses and Financial Results
On October 13, SkyCity confirmed it took part in the auction for the right to apply for licenses under the Online Casino Gambling Act 2026. Each license costs NZ$15 million.
CEO Jason Walbridge said the company chose to seek two licenses instead of the maximum of three. He said the choice reflected the company’s capital priorities and return targets.
If approved, SkyCity would run two of the 15 brands allowed in the regulated market. Cook estimated the market is worth more than NZ$1 billion a year.
For FY26, SkyCity reported underlying revenue of NZ$822.7 million, mostly unchanged from the year before. Gaming revenue fell 5.9% after carded play was introduced across its New Zealand casinos and premium gaming weakened.
Underlying EBITDA dropped 22.3% to NZ$181.6 million. Trading in the first quarter of FY27 matched the final quarter of FY26, with consumer conditions in New Zealand and Australia still subdued.
SkyCity expects capital spending near the middle of its NZ$80 million to NZ$100 million range. It will also spend NZ$30 million on online license costs.
The company aims to save NZ$30 million in FY27, rising to NZ$70 million in FY28. It is also targeting a return to dividend payments in FY28.
Testing for the new online regime is already underway, with GLI approved as a testing laboratory. The online market is set to launch in the second half of FY27.
SkyCity has not issued formal guidance because the timing of its online market entry is still unclear. The company said it will closely watch advertising levels once the market opens.
