SkyCity profit drops as it proposes hundreds of job cuts

SkyCity, the casino operator, has announced a significant 38 percent decrease in its full year net profit for FY26. The company is undergoing a major restructuring process aimed at simplifying, streamlining, and enhancing its operations. CEO Jason Walbridge revealed that the restructuring will lead to annual savings of $30 million in FY27, escalating to a total saving of $70 million in FY28.

This strategic move is in response to the evolving operating environment and the future direction of the business, particularly considering the regulation of online gambling.

For the 12 months ending June, SkyCity did not provide a profit outlook but will update the market at the annual shareholders meeting in October. However, Walbridge noted that one-off costs from their cost-out program may impact reported earnings. The company expects capital expenditure in FY27 to range between $80 million to $100 million, which includes retention payments for the NZICC and excludes any costs associated with online licences.

The primary focus for SkyCity is to execute key priorities, restore positive cash flow, and once achieved, reinstate dividends. Last week, reports emerged that hundreds of jobs were potentially at risk due to the economic challenges the company faces. According to SkyCity, most of the roughly 200 roles potentially affected are located in Auckland.