Table of Contents
What changed
Revenue fell 4.6% to NZ$821.3m. Reported EBITDA rose 56.4% to NZ$216.1m, but that figure is flattered by the prior period's impairment and charge base — underlying EBITDA (excluding NZ$17.6m of B3 programme costs) was NZ$233.7m, 15.9% below the prior period. PBT rose 126.2% to NZ$68.2m and NPAT swung from a NZ$143.3m loss to a NZ$29.2m profit, the bulk of which came in the second half (HY25 contributed only 20.8% of full-year NPAT).
Cash told the opposite story. Operating cash flow collapsed 77.8% to NZ$45.2m from NZ$203.6m. Capex was NZ$161.6m, producing pre-lease free cash flow of -NZ$116.4m. Gross borrowings rose NZ$57.0m to NZ$666.5m and cash fell to NZ$51.5m, lifting net debt to NZ$615.0m. Leverage nonetheless improved to 2.85x EBITDA from 3.97x because reported EBITDA recovered. Dividends remain suspended.
What matters
- Reported versus underlying earnings gap. The headline 56.4% EBITDA lift reverses only because FY24 absorbed impairments and charges; on an underlying basis EBITDA contracted 15.9% on a 4.6% revenue decline, implying margin compression in the core business.
- Cash conversion deterioration. OCF/EBITDA dropped from 147.4% to 20.9%. Combined with sustained capex (NZ$161.6m, 19.7% of revenue), this left pre-lease FCF at -NZ$116.4m and forced a NZ$57.0m increase in gross borrowings — the primary reason SkyCity is raising fresh balance-sheet initiatives.
- Leverage optics versus substance. The headline deleveraging (3.97x to 2.85x) is EBITDA-driven, not debt-driven. Absolute net debt rose NZ$66.0m while cash fell NZ$9.0m, so the improvement reverses if underlying EBITDA continues to fade.
Expectations
No quantitative earnings guidance or forward-work target was disclosed in the supplied materials, and no segment revenue split is provided (only that New Zealand operations contributed NZ$271.9m of underlying EBITDA versus Adelaide's NZ$39.6m). The shape data shows HY25 delivered 52.3% of full-year EBITDA but only 20.8% of NPAT, so the second half was profit-weighted largely through lower charges below the EBITDA line rather than through an operating acceleration. The release does not support a view that underlying trading has inflected; it supports a view that reported numbers are normalising off a heavily charged FY24 base.
Quality of result
Low durability. The NPAT swing is substantially a non-repeat of FY24 impairment and tax distortion — FY24's effective tax rate was 575.7% on NZ$30.1m PBT; FY25's is still an elevated 57.1%, making PBT (up 126.2%) the cleaner read than NPAT. Underlying EBITDA down 15.9% is the more representative operating signal.
The working-capital tailwind was modest (receivable days fell from 3.5 to 2.0), so the NZ$158.4m fall in OCF is not a simple working-capital reversal — it reflects weaker operating profitability and higher cash outflows elsewhere. With OCF at just 20.9% of EBITDA versus 147.4% prior, cash conversion deteriorated materially and this is flagged as the single weakest feature of the result. Capex at roughly 19.7% of revenue continues to absorb all operating cash and then some, and the gap is being funded by drawn debt.
Unresolved
- What are the specific drivers of the NZ$158.4m OCF decline beyond the modest working-capital moves, and how much is recurring?
- The release references new balance-sheet initiatives — size, form, and dilution impact are not in the supplied excerpts.
- B3 programme costs of NZ$17.6m are excluded from underlying EBITDA; the supplied materials do not indicate whether these costs recur in FY26 or taper.
- Segment revenue is not disclosed, so the split between New Zealand and Adelaide top-line trajectories cannot be verified against the NZ$271.9m / NZ$39.6m underlying EBITDA contributions.
- The stated dividend suspension horizon and the conditions for resumption are not quantified in the supplied excerpts.
This briefing cannot assess regulatory matters, including the status and financial impact of any AML/CFT proceedings or licence conditions, because none are quantified in the supplied extraction data.
Key metrics
| Metric | FY25 | FY24 | Change |
|---|---|---|---|
| Revenue | $821.3m | $861m | -4.6% ↓ |
| EBITDA | $216.1m | $138.2m | +56.4% ↑ |
| Net profit after tax | $29.2m | −$143.3m | +120.4% ↑ |
| Net cash inflow from operating activities | $45.2m | $203.6m | -77.8% ↓ |
| Operating profit | $121.9m | $46.1m | +164.2% ↑ |
| Profit before tax | $68.2m | $30.1m | +126.2% ↑ |
| Cash and cash equivalents | $51.5m | $60.5m | -14.9% ↓ |
| Total assets | $2.8b | $2.8b | -0.8% ↓ |
Segment breakdown
| Segment | Current revenue | Prior revenue | Current result | Mix shift |
|---|---|---|---|---|
| New Zealand operations | — | — | $271.9m | n/a |
| SkyCity Adelaide | — | — | $39.6m | n/a |
Analytical metrics
| Metric | FY25 | FY24 | Context |
|---|---|---|---|
| PBT growth | +126.2% | — | cleaner earnings measure |
| Effective tax rate | 57.1% | 575.7% | — |
| OCF / EBITDA (cash conversion) | 20.9% | 147.4% | deteriorated |
| FCF pre-lease | −$116.4m | −$100.1m | −$16.3m |
| FCF / NPAT | -398.3% | 69.8% | complementary conversion metric |
| Capex % revenue | 19.7% | 35.3% | — |
| Capex | $161.6m | −$303.7m | +$465.3m |
| Debtor days | 2.0 | 3.5 | -1.5 days |
| Inventory days | 3.6 | 3.5 | +0.1 days |
| Trade debtors | $4.4m | $8.1m | −$3.7m |
| Net debt | $615m | $549m | +$66m |
| Net debt / EBITDA | 2.85x | 3.97x | Strengthening |
| Gross borrowings | $666.5m | $609.5m | +$57m |
| ROE (annualised) | 2.2% | -11.0% | Strengthening |
| HY25 share of FY25 revenue | 51.2% | — | Other half was 48.8% |
| HY25 share of FY25 EBITDA | 52.3% | — | Other half was 47.7% |
| HY25 share of FY25 NPAT | 20.8% | — | Other half was 79.2% |
| Profit from continuing operations | $29.2m | — | — |
This analysis was generated using Annolyse, an AI-powered tool that analyses NZX company announcements. The analysis is based on available company filings and standard Annolyse calculations. This is general information only and does not constitute financial advice. The analysis may contain errors. Always read the original company filings and consult a licensed financial adviser before making investment decisions.