Announcement • Sep 09
SkyCity Entertainment Group Limited has completed a Follow-on Equity Offering in the amount of NZD 239.999999 million. SkyCity Entertainment Group Limited has completed a Follow-on Equity Offering in the amount of NZD 239.999999 million.
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 63,665,552
Price\Range: NZD 0.7
Discount Per Security: NZD 0.0105
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 115,930,214
Price\Range: NZD 0.7
Discount Per Security: NZD 0.0105
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 163,261,376
Price\Range: NZD 0.7
Discount Per Security: NZD 0.0105
Transaction Features: Rights Offering; Subsequent Direct Listing New Risk • Aug 28
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 37% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (2.4x net interest cover). Shareholders have been substantially diluted in the past year (37% increase in shares outstanding). Reported Earnings • Aug 22
Full year 2025 earnings released: EPS: NZ$0.039 (vs NZ$0.19 loss in FY 2024) Full year 2025 results: EPS: NZ$0.039 (up from NZ$0.19 loss in FY 2024). Revenue: NZ$824.5m (down 4.7% from FY 2024). Net income: NZ$29.2m (up NZ$172.6m from FY 2024). Profit margin: 3.5% (up from net loss in FY 2024). The move to profitability was driven by lower expenses. Revenue is forecast to grow 4.0% p.a. on average during the next 3 years, compared to a 4.7% growth forecast for the Hospitality industry in Australia. Over the last 3 years on average, earnings per share has fallen by 61% per year but the company’s share price has only fallen by 38% per year, which means it has not declined as severely as earnings. Announcement • Aug 21
SkyCity Entertainment Group Limited has filed a Follow-on Equity Offering in the amount of NZD 239.999999 million. SkyCity Entertainment Group Limited has filed a Follow-on Equity Offering in the amount of NZD 239.999999 million.
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 226,926,928
Price\Range: NZD 0.7
Discount Per Security: NZD 0.0105
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 115,930,214
Price\Range: NZD 0.7
Discount Per Security: NZD 0.0105
Transaction Features: Rights Offering; Subsequent Direct Listing Announcement • Aug 15
SkyCity Entertainment Group Limited, Annual General Meeting, Oct 31, 2025 SkyCity Entertainment Group Limited, Annual General Meeting, Oct 31, 2025. Announcement • Sep 23
SkyCity Entertainment Group Limited(NZSE:SKC) dropped from FTSE All-World Index (USD) SkyCity Entertainment Group Limited(NZSE:SKC) dropped from FTSE All-World Index (USD) Reported Earnings • Aug 22
Full year 2024 earnings released: NZ$0.19 loss per share (vs NZ$0.011 profit in FY 2023) Full year 2024 results: NZ$0.19 loss per share (down from NZ$0.011 profit in FY 2023). Revenue: NZ$882.5m (up 2.9% from FY 2023). Net loss: NZ$143.3m (down NZ$151.3m from profit in FY 2023). Revenue is forecast to grow 2.7% p.a. on average during the next 3 years, compared to a 6.5% growth forecast for the Hospitality industry in Australia. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 101 percentage points per year, which is a significant difference in performance. Announcement • Jun 26
An undisclosed buyer agreed to acquire 10.46% stake in Gaming Innovation Group Inc. (OB:GIG) from SkyCity Entertainment Group Limited (NZSE:SKC). An undisclosed buyer agreed to acquire 10.46% stake in Gaming Innovation Group Inc. (OB:GIG) from SkyCity Entertainment Group Limited (NZSE:SKC) on June 24, 2024. Following the transaction, SkyCity Entertainment Group Limited does not hold any shares, rights to shares or other financial instruments in the Gaming Innovation. Recent Insider Transactions • Jun 13
Insider recently sold AU$288k worth of stock On the 4th of June, David Christian sold around 194k shares on-market at roughly AU$1.48 per share. This transaction amounted to 100% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Despite this recent sale, insiders have collectively bought AU$178k more than they sold in the last 12 months. Upcoming Dividend • Feb 28
Upcoming dividend of NZ$0.062 per share Eligible shareholders must have bought the stock before 06 March 2024. Payment date: 21 March 2024. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 5.5%. Lower than top quartile of Australian dividend payers (6.4%). Higher than average of industry peers (1.8%). Declared Dividend • Feb 24
First half dividend of NZ$0.062 announced Shareholders will receive a dividend of NZ$0.062. Ex-date: 6th March 2024 Payment date: 21st March 2024 Dividend yield will be 7.1%, which is higher than the industry average of 1.8%. Sustainability & Growth Dividend is not covered by earnings (dividend approximately 11x earnings) and the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. The company's earnings per share (EPS) would need to grow by 1,127% to bring the payout ratio under control. EPS is expected to grow by 134% over the next 3 years, which means the dividend may need to be reduced to reach a sustainable payout ratio. Reported Earnings • Feb 23
First half 2024 earnings released: EPS: NZ$0.03 (vs NZ$0.03 in 1H 2023) First half 2024 results: EPS: NZ$0.03 (in line with 1H 2023). Revenue: NZ$441.9m (flat on 1H 2023). Net income: NZ$22.5m (down 1.3% from 1H 2023). Profit margin: 5.1% (down from 5.2% in 1H 2023). Revenue is forecast to grow 4.9% p.a. on average during the next 3 years, compared to a 6.8% growth forecast for the Hospitality industry in Australia. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 49 percentage points per year, which is a significant difference in performance. New Risk • Feb 22
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 0.9% Last year net profit margin: 2.9% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Dividend per share is over 11x earnings per share. Paying a dividend despite having no free cash flows. Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.9% net profit margin). Announcement • Oct 31
SkyCity Entertainment Group Limited, Annual General Meeting, Oct 31, 2024 SkyCity Entertainment Group Limited, Annual General Meeting, Oct 31, 2024. Announcement • Sep 28
SkyCity Entertainment Group Limited Announces Appointment of Donna Cooper as Independent Non-Executive Director SkyCity Entertainment Group Limited announced that Donna Cooper has been appointed as an Independent Non-Executive Director of SkyCity, effective September 28, 2023. Upcoming Dividend • Aug 31
Upcoming dividend of NZ$0.071 per share at 5.1% yield Eligible shareholders must have bought the stock before 07 September 2023. Payment date: 22 September 2023. The company is paying out more than 100% of its earnings and cash flow. Trailing yield: 5.1%. Lower than top quartile of Australian dividend payers (7.0%). Higher than average of industry peers (1.8%). Recent Insider Transactions • Aug 30
Director recently bought AU$146k worth of stock On the 28th of August, Glenn Davis bought around 70k shares on-market at roughly AU$2.09 per share. This trade did not impact their existing holding. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought AU$216k more in shares than they have sold in the last 12 months. Announcement • Aug 24
SkyCity Entertainment Group Limited Announces Plans to Pay Final Dividend in Respect of the Financial Year 30 June 2023, Payable on 22 September 2023 SkyCity Entertainment Group Limited directors announced plans to pay final dividend of NZD 0.07058824 per share in respect of the 30 June 2023 financial year. The dividend will be payable on 22 September 2023 with record Date 8 September 2023 and Ex Date dividend date of 7 September 2023. Announcement • Aug 23
SkyCity Entertainment Group Limited Announces Plans to Pay Supplementary Dividend in Respect of the 30 June 2023, Payable on 22 September 2023 SkyCity Entertainment Group Limited announced plans to pay supplementary dividend of NZD 0.01058824 per share in respect of the 30 June 2023 financial year. The dividend will be payable on 22 September 2023 with record Date 8 September 2023 and Ex Date dividend date of 7 September 2023. New Risk • Aug 23
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 290% Dividend per share is over 5x cash flows per share. Dividend yield: 5.3% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 290% Dividend per share is over 5x cash flows per share. Minor Risk Large one-off items impacting financial results. Upcoming Dividend • Feb 23
Upcoming dividend of NZ$0.071 per share at 4.7% yield Eligible shareholders must have bought the stock before 02 March 2023. Payment date: 17 March 2023. Trailing yield: 4.7%. Lower than top quartile of Australian dividend payers (6.9%). Higher than average of industry peers (1.8%). Reported Earnings • Feb 15
First half 2023 earnings released: EPS: NZ$0.03 (vs NZ$0.045 loss in 1H 2022) First half 2023 results: EPS: NZ$0.03 (up from NZ$0.045 loss in 1H 2022). Revenue: NZ$440.3m (up 102% from 1H 2022). Net income: NZ$22.8m (up NZ$56.6m from 1H 2022). Profit margin: 5.2% (up from net loss in 1H 2022). Revenue is forecast to grow 8.0% p.a. on average during the next 3 years, compared to a 8.8% growth forecast for the Hospitality industry in Australia. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 88 percentage points per year, which is a significant difference in performance. Board Change • Nov 16
High number of new and inexperienced directors There are 5 new directors who have joined the board in the last 3 years. The company's board is composed of: 5 new directors. No experienced directors. 1 highly experienced director. Independent Non-Executive Director Sue Suckling is the most experienced director on the board, commencing their role in 2011. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Announcement • Nov 03
SkyCity Entertainment Group Limited, Annual General Meeting, Oct 27, 2023 SkyCity Entertainment Group Limited, Annual General Meeting, Oct 27, 2023. Board Change • Nov 01
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Director Glenn Davis was the last director to join the board, commencing their role in 2022. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Board Change • Oct 02
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Director Glenn Davis was the last director to join the board, commencing their role in 2022. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Aug 26
Full year 2022 earnings released: NZ$0.044 loss per share (vs NZ$0.21 profit in FY 2021) Full year 2022 results: NZ$0.044 loss per share (down from NZ$0.21 profit in FY 2021). Revenue: NZ$586.5m (down 18% from FY 2021). Net loss: NZ$33.6m (down 122% from profit in FY 2021). Over the next year, revenue is forecast to grow 49%, compared to a 28% growth forecast for the Hospitality industry in Australia. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 65 percentage points per year, which is a significant difference in performance. Recent Insider Transactions • Mar 04
Insider recently sold AU$303k worth of stock On the 24th of February, Robert Campbell sold around 111k shares on-market at roughly AU$2.73 per share. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of AU$473k more than they bought in the last 12 months. Buying Opportunity • Mar 03
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 4.9%. The fair value is estimated to be NZ$3.46, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 11% per annum over the last 3 years. The company has become profitable over the last year. Executive Departure • Apr 02
Chief Marketing Officer has left the company On the 31st of March, Liza McNally's tenure as Chief Marketing Officer ended after 3.2 years in the role. As of December 2020, Liza personally held 93.53k shares (AU$277k worth at the time). A total of 4 executives have left over the last 12 months. Executive Departure • Mar 01
Chief Financial Officer has left the company On the 26th of February, Rob Hamilton's tenure as Chief Financial Officer ended after 6.4 years in the role. As of December 2020, Rob personally held 374.97k shares (AU$1.1m worth at the time). A total of 3 executives have left over the last 12 months. Reported Earnings • Feb 19
First half 2021 earnings released: EPS NZ$0.10 (vs NZ$0.49 in 1H 2020) The company reported a poor first half result with weaker earnings, revenues and profit margins. First half 2021 results: Revenue: NZ$316.8m (down 24% from 1H 2020). Net income: NZ$78.4m (down 76% from 1H 2020). Profit margin: 25% (down from 79% in 1H 2020). Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Is New 90 Day High Low • Feb 11
New 90-day low: AU$2.77 The company is down 6.0% from its price of AU$2.96 on 13 November 2020. The Australian market is up 9.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Hospitality industry, which is up 7.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is AU$3.24 per share. Is New 90 Day High Low • Dec 04
New 90-day high: AU$3.08 The company is up 21% from its price of AU$2.56 on 04 September 2020. The Australian market is up 8.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Hospitality industry, which is up 9.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is AU$2.99 per share. Is New 90 Day High Low • Nov 12
New 90-day high: AU$3.02 The company is up 39% from its price of AU$2.17 on 14 August 2020. The Australian market is up 7.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Hospitality industry, which is up 20% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is AU$3.24 per share.