SkyCity underlying EBITDA meets guidance as reported NPAT falls 37.6%

SkyCity's reported-to-underlying EBITDA reconciliation adds back NZ$23.5m of Adelaide B3 costs, a NZ$23.9m regulatory provision, a NZ$52.2m Adelaide impairment, a NZ$10.3m 99 Albert Street impairment and NZ$7.4m of property revaluations, while removing a NZ$56.2m Group-simplification credit. Those adjustments produce the net NZ$61.1m EBITDA bridge. Reported PBT moved from a NZ$68.2m profit to a NZ$12.1m loss.

Revenue bases must be kept separate: statutory income-statement revenue was NZ$813.7m, reported revenue was NZ$878.9m, and underlying revenue was NZ$822.7m. The statement basis fell 0.9% and the underlying basis fell 0.3%; the three bases are not interchangeable.

Reported NPAT fell 37.6% to NZ$18.2m from NZ$29.2m, a valid same-sign comparison. The current-year PBT loss was followed by a NZ$30.3m income-tax benefit, versus a NZ$38.9m tax expense in FY25, so the NPAT decline should not be treated as a continuation of the PBT movement. Net debt fell 21.4% to NZ$590.7m. Net debt to EBITDA stands at 3.1x on SkyCity's disclosed covenant basis; a like-for-like prior-year leverage comparison is not available, so no directional leverage conclusion is drawn.

The Albert Street and Victoria Street property agreement has NZ$74.5m of gross consideration; it became unconditional on 17 July 2026 and was expected to settle on 1 September 2026. The wider asset-monetisation programme is expected to deliver NZ$275m–NZ$300m, with proceeds anticipated by December 2026. Because those sale proceeds fall after the FY26 reporting date, they did not cause period-end net debt of NZ$590.7m; the direct year-end leverage evidence is SkyCity's disclosed 3.1x covenant measure.

Reported EBITDA margin fell to 14.8%, below Annolyse's 20.6% three-year average, while underlying EBITDA also declined 22.3%. The two measures have different bases, but both show weaker earnings than FY25. The partial working-capital balance proxy increased by NZ$5.2m; it is not a cash-flow measure. Debtor days rose to 4.7 from 2.4 days, while operating cash flow and cash conversion are assessed separately below.

SkyCity separately reported 2H26 underlying EBITDA of NZ$96.1m, including an approximately NZ$20m negative impact in 4Q26 compared with 3Q26. The company did not provide FY27 earnings guidance and said it would give a trading update at the October ASM. It targets NZ$30m of FY27 savings and FY27 capex of NZ$80m–NZ$100m.

Free cash flow before lease effects improved to approximately NZ$26.3m from negative NZ$116.4m. The NZ$142.7m change reflects both a NZ$76.5m increase in operating cash flow and a NZ$66.2m reduction in capex. FY26 capex of NZ$95.4m was below SkyCity's NZ$100m–NZ$110m guidance range, while the FY27 guidance range is NZ$80m–NZ$100m.

SkyCity said it would consider resuming dividends only after achieving its capital-management objectives, so payout timing remains conditional rather than committed.