Rob Campbell buying more shares
https://www.nzx.com/announcements/359638
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Rob Campbell buying more shares
https://www.nzx.com/announcements/359638
You need to pay people commensurate with the job that they do, these share rights issues are effectively salary at risk as part of their employment agreement.
e.g. Graeme's target under DSTI is 50% of his base salary.
Remember back in April, Graeme took a 40% pay cut, as did the CFO and COO till the end of 2020 and the board's fees were reduced by 50%.
There is no doubt that Graeme, Rob and the exec team have worked very long and hard hours during this Covid outbreak to sail the ship in the right direction.
I have no problem with them being issued these shares as part of their salary, infact I believe it is a good thing.
Its a casino stock.. lots of people being paid high salaries to keep the gambling and entertainment machine going. Casino stocks always pay management position well to keep pushing entertainment message. Lots of over paid upper management but thats what you do else they will go and talk rubbish in another casino.. Working in management in these companies is as addictive as it is for some punters, just like horse racing.. You should see the types horse racing attracts..
DSIC: trade this stock.
It will be a solid investment long term - very good property and license assets.
"It will be a solid investment long term - very good property and license assets."
exactly.
Comes 2021, comes negative interest rates.
Hugh yielding stocks like SKC will be re-rated massively imo and I fully expect the sp to have at least a $5 in front of it within the next 2 years.
Seen it all before when interests dropped sharply in the 1990s and 2000s.
Except that this time, with negative interest rates I will add - ‘you ain’t seen nothing yet!’
Not so far back pension fund models relied on 6% return (I recall one using 7%). Current environment makes even 3% a big challenge. That's a huge difference, they will be burning capital. If you believe interest rates will stay "low for long", and that SKC reverts to a half decent 5%+ divvy (given all the new shares on issue 20c seems unlikely for a while) consider the appeal for the non-ethical international pension fund.
I've never really understood the whole "non-ethical" thing about SKC. They sell entertainment to people who want to buy it. The entertainment is not damaging per se. Almost all companies will do their level best to get you to buy something you don't need and can't afford with money you don't have. Gambling can be addictive and can damage people's lives. The same is true, to some degree, of many products and services. SKC would be one of very few companies who go out of their way to identify problem customers and discourage them from their consumption. I'd call that within the bounds of normal ethical behavior.
Exactly the view I have ... I'm glad I'm not alone.
SkyCity has a "Surveillance" team of 50-100 people constantly watching people inside the Casino and looking for signs of "gambling distress" ... all staff are trained to look out for the signs that guests are no longer having fun and will eject them from the casino if this is detected (hence SkyCity may lose their casino licence). There is also a permanent police/government information sharing agreement due to the highly regulated nature of the business. I don't believe the same can be said for the pokies at the local workingmans club or RSA! I always find it's a huge double standard that the TAB and Lotto get to advertise on prime time TV where SkyCity is not allowed to advertise anywhere except for brand signage around their precinct ... you may notice the complete lack of "Casino" signs except for the single one at the front of the building ... this is because of regulations.
No matter whatever others think that casino in Auckland it is a den of iniquity .. and that's being kind.
Out of curiosity went inside once - a couple of minutes in a dingy area squelching through wet carpet was enough to put me off for good....and then some poor souls heading off to the carpark (no doubt to check on the kids).
was staying at the place for a conference - not by choice
Should move towards 3.50.
3.50? No please please not yet... awa NOOOOOooooo... waste of a good pandemic.. cant these newbies understand... no dividends... low profits... no asian high rollers.... oh well we will trade the sell off back from 4 dollars then..
the new chairs in the bar areas in hamilton very nice pitty the champagne bar is closed!
Den of iniquity is a lovely phrase. Apparently taken from Jesus's phrase "den of thieves" referring to traders working in the temples. Does not seem to apply to gambling particularly though. "Iniquity" apparently refers to wickedness or being sinful. From Jesus's perspective that would principally mean transgression of the commandments of the God of the Bible, the ten commandments. Pretty much any trader open on a Sunday would meet that threshold.
that so called church in south auckland is a den of well... slick tribal leaders ... quick fleecing dinner every day in the lords name... not sure whats worse casinos that say they are gambling.... or prayer that is ? local prayer group here meet in each other homes... we could shut down horse racing and sport betting as well...better stop looking at that horse painting on the wall... that horse must have made a lot of people a lot of money on the track and a lot of sport gamblers a lot of money...
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I wouldnt try to think too hard about the logic of it all (Mcdonalds is hardly good for humanity or the planet but I dont see that on many "avoid" lists). Just important to remember that fashionable marketing parameters, which influence the SP, are in play. You cant fight it.
SkyCity is prohibited from advertising their online casino in NZ ... even though it's only available for people in NZ. You will not see any print media, tv advertisements, mailers etc.
The online casino is not allowed to be hosted in NZ so is therefore hosted offshore in Malta as a separate business entity ... however SkyCity has pledged to still pay tax on the profits made by the online casino (even though by law it does not have to).
I guess the business leaders can try their best to be good corporate citizens but at the end of the day the haters are still going to hate ... those of us who have an open mind can appreciate it's actually an awesome entertainment and hospitality company doing some really cool and unique things!
Attachment 11984
SKC was the top performer by a long shot on the ASX200 for September 2020, up over 22%, whilst the ASX200 overall fell 4%
My notes from the Virtual AGM.
Other companies should really pay attention to this as some of the virtual AGM's have been a real disappointment in their live technology use. SKC's Videos, Transitions, Audio and Visual quality was outstanding.
Challenging Year thus Far. (obviously)
They were very clear no further capital raising.
Thanks to government for wage subsidy. Hundreds of people still have jobs because of Wage Subsidy, otherwise they wouldn't be employed today.
Really odd comment from Graeme, "our balance sheet allows us sufficient liquidity to sustain one or two further lockdowns" but they currently have half a Billion of available liquidity?
International business won't be back for a year at least. Not expected to have international tourists back until 2022 at least.
Group is now fully carbon neutral in (NZ was in FY19, Adelaide in FY20)
New "6th" Pillar to "Create Value for its Shareholders" while being conscious of the area's they operate. (bit of a no brainer you would think!)
#1 objective is to "Stay Open" - lockdowns obviously hurting them a lot, pretty self explanatory.
Graeme Spoke multiple times about "Able to Stay Open"... I suspect they are very nervous if they keep getting locked down again and again. (obviously)
No new capital allocations to be made in FY21.
No change to financial guidance around FY21.
Expected to pay Final Dividend in FY21 (no interim dividend end of Calendar 2020) - Graeme later went on to say "Hopefully..."
Auckland:
The second lockdown in Auckland cost SKC $20million
Level 8/9 redeveloped, new bar, new food court due to open in Auckland customers will be "suprised and delighted about these developments"
Rebuild of NZICC starting "imminently" - ICC to open 2023
Horizon Hotel open 2021
Hobson St Air-bridge will be installed this month (I think I heard that correctly).
Gaming Business has been very positive
Non-Gaming Business is "very light" during the week but "very strong" during the weekends (read: Food/Accomodation).
Excited about new VIP gaming room "black" which is twice the size of the previous VIP gaming room which will be relevant for the years to come.
Hamilton:
Applications for swapping 3x Blackjack tables for 60x EGM's was turned down.
New Lounge opened which is very positive.
Queenstown:
Really strong recovery since reopening with domestic tourism very strong.
Note: Any Further Developments are currently paused at ZQN/HLZ.
Adelaide:
weeks away from opening (November 2020) - Graeme looked very happy and spoke very positively about the precinct opening up.
"The best integrated resort in Australia". "EOS will be Most Luxurious Hotel in SA". "World-Class". Initially targetting local and inter-state customers. Project will be delivered inline with $330m budget.
I noted some of the pictures of Adelaide are absolutely amazing, they look better than any other hotel that I have stayed in (and I've stayed at a lot over the years).
Online:
Online business well above expectations, it is now a meaningful business for us.
35,000 customers, of which 25,000 are active. Profitable on month by month basis.
Believe in the "relatively near" future, there will be regulations allowing an "online casino" allowed to be hosted in NZ. Have been in discussions with the regulators around this. (remembering this is operated via a Malta based subsidary, even though they are paying Tax in NZ and following all "expected" regulations.)
Thanks for sharing Norwest!.
Thanks Norwest.
I completely forgot about the presentation. Your summary is wonderful.
I am bullish about sky city. I think they are well-positioned for the recovery, the online website is a good addition to cash flows with more to come and it seems that SKC can withstand any future adverse events.
Here is a summary of the meeting from the Herald
https://www.nzherald.co.nz/business/...M4TPSCFA762Q4/
Crown Resorts: Australian casino operator faces laundering probe https://www.bbc.co.uk/news/world-australia-54595050
would be an interesting opportunity for SKC if Crown lost a licence or two!! more likely a fine though (if proven). Still.... might make it harder at renewal time eh...
https://www.nbr.co.nz/story/skycity-...st-re-election
I think this shows a distinct lack of self-awareness from Rob Campbell... for someone so woke, seems more asleep.
"SkyCity chair Rob Campbell blames lazy proxy advisers for vote backlash"
- Campbell had 91.3 million shares or 16.76% of the vote directed against his re-election last week
- Votes against were due to proxy adviser recommendations
- Campbell states these proxy advisers don't speak to management and it's just formulaic "box-ticking"
- Proxy advisers claimed he is potentially too stretched across multiple directorships to be effective
- Campbell claims he doesn't play golf or sail boats or do anything else to chew up his time like a lot of other directors
- NZSA voted in favour of his re-appointment despite policy that directors shouldn't have more than 5 directorship
Gist of the comments section (around 15 of them)
- Rob spends too much time on LinkedIn and other social media pontificating
- He is hypocritical taking the wage subsidy given his broader virtue signaling social media posts
- One comment suggesting a blanket rule on number of directorships are rubbish
- Comment that proxy voters are actually quite well informed and Rob just doesn't like the advice
...and it appears Rob himself has replied in the comments:
- If you don't like my posts block them
- I have 29,000 connections
- Comments on the underlying business performance across his directorships are not well informed - albeit THL is suffering due to Covid (i.e. out of his control)
https://www.nzx.com/announcements/363264
Plenty of exec changes and a trading update coming.
Not much time between announcement and the CEO leaving....
It sounds like Rob Hamilton is leaving because he was in contention for the CEO role (and wanted it), thus has decided to leave.
Though Graeme is retiring from this role, he will "stay active in the NZ Market" (read: he'll be looking for another job, however he does not have another role to go to).
Graeme had 6 months requirement to leave in his contract, thus with only 2 weeks notice it was a "mutual parting"... he will be paid out all his entitlements under his contractual agreement, no extra inducements paid out.
Michael's priorities (other than to get new exec structure in place)... focus on core business, navigating through Covid, focus on execution in Adelaide as part of the opening and completing NZICC.
Also it sounds like the Michael is going to be getting remunerated less than Graeme was.
That was yesterday news...
I think Skc... retailers..will be okay as people are not spending thier overseas holidays money.
People will spend on hobbies... restaurants....movie... entertainment coming this Christmas
SKC has to be one of the best potential recovery stocks once everyone gets vaccinated and borders open. I'm sure there will be a lot of pent up demand with IB. I'm thinking one from now we should be aroung $4-$4.50.
Oz crown is in the deep sheet...facing money laundering. Will see fundies coming to SKC shortly
You may not see 3 dollars again any time soon but you never know... Topped up a few months back in the high 2's
possibly responding to the round 3 of virus in europe the world..
3 was probably getting a bit carried away and 3.20 was sale able...
we have this down as the last stock to revalue in the NZX after all others revalue.
we though perhaps the sharie people would prop it up... i appears they are running out of spare cash in summer...
GFC share price .
I don't think Sharesies people understand that SKC is building its online income and can do well out of local high rollers in the VIP section. Obviously it's not going to do as well without tourists but it's a well run company
EPS: 10.4cps: down from 49.3cps - Ouch!
https://www.nzx.com/announcements/367765
It was interesting listening to Michael deliver for the first time, he was quite nervous in his delivery and potentially out of his depth to a degree, I thought he was quite lucky to have someone else who was much, much more confident sitting with him (It wasn’t Rob, I’m not sure who it was) to interject and save him a few times during questions. Also the call quality was pretty bad which didn’t help.
Questions: Forsyth Barr
Q: Coming back to Adelaide, trying to understand the profile from here.
A: Domestic Trading activity only (obviously), its early days, over the period the consistency has been good with plenty of upside from the hotels.
Q: From the group level, you've been taking costs out, have you put costs back (read: operational).
A: Some costs have come back as activity has recovered, more marketing and more hires to support gaming. We are being pretty cautious, but don't expect to add back all the costs that we've taken out moving forward.
Q: So you'll be able to sustain these cost decreases?
A: Yes we think it’s sustainable, but it’s very difficult to see a clean margin but in reality we are seeing a higher underlying margin in the market.
Q: Re: Hamilton, currently you are hitting it out the park. Interested in how you think of this sustainably?
A: Happy with Hamilton, significant changes made and the product, pricing and outlook is very positive and it’s a sustainable level of earnings this is not just a one off. Once international boarders open up, you will see people in the Waikato wanting to head to Aussie, Overseas etc and this may impact FY22 results.
Questions from Goldman Sachs
Q: Slide 10 can you give us info on performance on Jan-Mid Feb.
A: It's been pretty consistent, it’s a progression over time in performance, getting more confident over time. January very similar to December, it’s been consistent across each category.
Q: Full year guidance has been re-iterated, FY21 above FY20, but below FY19. Is there a degree of conservatism baked into this?
A: We just don't know. Increased lockdowns may have impact on EBITDA. Level 2 operation is half of what Level 1 is. We've been deliberately cautious, last week has shown how this can change so quickly.
Questions from Macquarie
Q: When can you structurally expand margin?
A: If you look at Hamilton it is dominated by EGM, good table performance, margins up significantly. Stronger gaming performance which is our higher margin performance. We're not looking to add costs back in where we don't need to. Auckland is different due to wider array of outlets e.g. food, beverage and hotels are relatively weak. Significant adverse effect on this property, but gaming margins are equivalent if not slightly up. If we are back to normal revenue activity in Auckland, we would expect to see margins slightly up. Re: Adelaide, the growth we are expecting will be higher margin for our business, hopefully we can see that flow in to improvement on our current 15-18% EBIDTA as we further open up.
Q: With IB, do you think NZ will ban "Junket Tours"
A: We haven't had any communications from this around DIA. This has been major focus on NSW obviously. The key thing is border opening. Our business in the international side has been operated much more conservatively than our peers. Look at FY19, 15% of IB turnover was junkets.
Q: Are you getting a benefit because of being ahead of any reform changes?
A: I don't think that’s beneficial even though we are ahead.
Questions from UBS (Marcus was quite frustrating in his line of questioning around the crown casino issues).
Q: On Adelaide, could you give us hard numbers since it’s opened?
A: It's difficult to put numbers here, I wouldn't be comfortable doing that. We're not in a habit of giving out monthly results and we aren't about to start.
Q: Is the right working assumption moving forward, is that you want be involved in junket play?
A: Borders are closed for 12months, so it’s not relevant at this time.
Q: When do you think you'll announce this?
A: There is a review underway, however our reliance on these junkets are a lot smaller as I've reiterated earlier.
Q: The issues crown has run into, would these equally apply to yourselves or could you manage the junket operators in an appropriate way?
A: We don't want to get into the crown casino issues, we've operated our business successfully since inception so these issues don't apply to Skycity.
Questions from Evans & Partners
Q: Can you give us EBITDA figures for Auckland for the December quarter.
A: We don't put out quarterly EBITDA numbers.
Q: Re: your comment of costs coming back into your business, how much headcount did you remove, and how much did you add back?
A: ~900 were made redundant, ~150 have come back, mainly casual and part time. Equivalent additional FTE is around 20. I would say we are not sure about outlook on when the business will recover and we're taking a cautious approach.
Q: What is the long-term guidance on Adelaide
A: $60M EBITDA target
Q: How soon do you expect to get up to 1500 slots at Adelaide, do you need this to hit $60m.
A: We don't need this to hit the target (anytime soon). It's a nice option to have to grow. There is some capacity, there are space in the facility to convert non-gaming to gaming depending on future demand.
Questions from Jarden
Q: Re: Slide 45, would it be normal to think this EBITDA contribution without using jobkeeper?
A: If you take this out, July-Nov was pretty close to PCP during this period, despite the constraints around construction and covid. December was obviously a much better month. Clearly out expectations for Adelaide in our second half will be better.
Q: Would you expect Adelaide to be higher EBITDA in second half?
A: Jobkeeper does impact first half, we don't expect to be below this in second half. No jobkeeper flowing into second half.
Q: Would you expect full year profits to flow into the dividend, or just the second half? e.g. a catchup dividend.
A: It will be half of full year. It won't be a catchup dividend, it will be sustainable consistent with the new policy. Our performance doesn't justify a catchup dividend.
It was also interesting to note that Michael shut down call quite abruptly at the end.
over priced at the moment but long term a return to steady increasing profits in 2022-2023.
You really need to read into financial report more in depth and compare like for like on PCP.
If you do this, you'll see a $193million differential in there regarding the NZICC fire which skews the figures quite a lot. It's still not a great result but once you take into account the above, plus the closures of our international borders and the continued lock downs, the EPS drop isn't as bad as the headline.
the share is still surely a head of its self by about 12 months?
DISC: We Hold .
Vaccines much more effective than previously thought. Time to start accumulating this one?
accum ? we did at 2.96 the other day.
Closed bit strong on ASX at NZ $3.31 equivalent, obviously demand coming from Aus Instos, same deal as in case of FBU too.
Logic? none ! We have missed out on making a lot of money this winter by trying to apply FA to the market. Logic said all high dividend stocks would increase in value. The market did in fact follow this logic much to our surprise. We should have held on to some wonderful NZ stocks but felt the market would roll over again, IT DID NOT.
But other stocks that we thought would be under performers for at least 2 year caught a bid and we have made money of these late reflation trades.
We held sky city in several portfolios all the way through which are under water positions.
As banks have outperformed taking out our loss positions years ahead of our worst case, much to our surprise, we also thought Sky City would attract a bid at under 2.90.
We only bought a small allocation at 2,96 after trading it up from 2,40.
It was a bet that the market MIGHT bet on the stock here.
Sky city is always a trade for us as its a casino stock and we treat it that way until its others business start to perform. NZ will be THE place for people to travel to in the future as it reputation for control virus's will place it at the forefront of safe places to hold a conference and travel the gulf , fly to the south island.
Global pandemic the best advertising the country could ever get.
We also wished we had added to overseas travel last week.
Bought in this week. Bottom draw along with CEN
big move of 2.90 to 3.30 , well the market is buying now for 2023 and beyond. Glad we got some more at 2.94 last week. This stock is always a bit of a coin toss. But a lot of people will want to party soon. Its anyone's guess where this stock goes for the next 12 months.
But we are looking to increase over seas travel stocks that are now firm in profit for us and we dont have enough of them.
The way its going, could well be onto 4 handle very shortly.
We like the stock
Nearing pre covid levels, where the stock had been for years. The upside is surely fairly limited from here? Or does SKC now have a growth runway?
Worst affected negatively due to COVID are travel, tourism, hotel and entertainment sectors. Obviously they're bound to be big beneficiaries when things looking to return to normal in the medium term.
My pick is its got few legs past $4 mark this time around, like most recovery stocks have zoomed past pre-covid levels.
Precisely what SKC & many companies were doing - trimming that fat (as in highly paid staff who could be replaced with cheaper staff), renegotiating supply contracts and streamlining operations.
Meanwhile, the substantial capital spend on ICC and Adelaide lays the platform for the next phase of earnings growth for the company.
Been to Orbit 360 for anniversary night dining with Mrs last week under level 2, super impressed with their protocols and new attractions they've in place like All Black Exp etc.
Not a gambling person, so didn't check out Casino, but from up above looks like ICC coming along nicely.
Article on Rob Campbell where he discusses the ethics of managing SKC.
https://businessdesk.co.nz/article/l...rate-socialist
"He’s fully aware about issues plaguing both the corporate world wider society and knows that change is necessary and inevitable."
"The incongruence of chairing a company that profits from gambling, while advocating for social well being is not lost on Campbell, who says “it’s hard to find that balance” at SkyCity. However, he says the company has a constant vigilance about its potential role in causing social harm; reminders about the host responsibility to mitigate problem gambling have been placed throughout the company’s structure; from the board table to the website and every employee’s key cards."
" “How many other businesses have that level of focus on the potential harm that they can cause?” Campbell asks. “How many petrol companies have that level of focus on the climate damage their products are doing, or fast food companies on the health issues they cause?"
" “The answer is, there’s none I’ve ever come across that has anything like the ongoing focus on wider stakeholder issues that SkyCity has.” "
SNOOPY
This should move back to pre covid levels, once reopening occurs abd ICC is up and running it will be spitting out a lot of cash, at which point it will be 4.50-5
https://www.smh.com.au/business/comp...22-p57csb.html
Takeover offer from Blackstone for Crown Casino for A$8 billion.
Could see some of that institutional money flow into Sky City if the takeover goes ahead.
Or will Blackstone make a tilt at Sky City too?
https://www.smh.com.au/business/comp...22-p57csb.html
Takeover offer from Blackstone for Crown Casino for A$8 billion.
Could see some of that institutional money flow into Sky City if the takeover goes ahead.
Or will Blackstone make a tilt at Sky City too?
thats like saying history doesnt repeat its self. Show us a time in the last 2000 years where human behaviour has changed much.
Does Zealandia today not look like Athens and Sparta and Pompeii.
What did they do in Pompeii, they PARTIED!!!
Imagine your locked up in china what are you going to do with your money. Leave if you can and go somewhere and party. They always find a way to get the money out. Hamilton has never stopped party mode at sky city.
Some solid financial, capital market and investment banking heavy hitters being added to the SKC Board incl SUM outgoing CEO Julian Cook keeping links with Chairman Rob Campbell.
With Crown being acquired recently, wonder if there's somethings up in the air with SKC too coinciding with these new Board appointments...
I thought exactly the same thing when I seen who they appointed.
If Crown are split up, Star is an obvious choice for their Sydney Casino given they own the the sole poker machine casino license in Sydney. That leaves Perth and more likely Melbourne as potential acquisitions if SKC was looking.
Unfortunately they don't have the cash on hand to do anything like this without a massive capital raise, thus I view 2 of the 3 appointments as a defensive move against potential vultures (e.g. Blackstone) looking at SKC, with the third appointment being Rob's association with Julian from working together at SUM.
Suppose not dealing with any international ‘junket operators’ makes Sky City less of a sin stock
Wonder how many zillions has been laundered over the years
It seems one Senior Manager has reduced his holding:
http://nzx-prod-s7fsd7f98s.s3-websit...097/344679.pdf
SkyCity tipped to reach 75% of pre-COVID revenue in 2021, outlook upgraded to stable
https://www.asgam.com/index.php/2021/04/19/skycity-tipped-to-reach-75-of-pre-covid-revenue-in-2021-outlook-upgraded-to-stable/
too optimistic in my opinion, even with the OZ bubble, I reckon it's gonna be another 2yrs or so, similar to AIA, until the business becomes viable again
"Steady as she goes" :t_up:
What is an electronic gaming machine? Is it just a posh name for Pokie
USA Vegas reporting big increases in customer numbers for april.
sky city adelaide being investigated for serious money laundering
@MarkListerNZ
SkyCity shares down 8.5% in Australian trade today, on the back of a range of companies finding themselves in the spotlight for AML compliance issues. Expect a similar fall when our market reopens for the week tomorrow.
If SKC share price collapses tomorrow could be a good buy
Reported in SMH
Meanwhile New Zealand group SkyCity said AUSTRAC had launched an enforcement investigation into its operations, relating to a potential failure to conduct proper due diligence on high-risk and politically exposed patrons at its Adelaide casino.
Down 8.5% on ASX.
https://www.theaustralian.com.au/bus...ed160e1757c3ca Puts the situation in context
Somebody dumped 1.5 million shares a few minutes ago on ASX
I have personally witnessed heavy hitters laying down one strap after another after another after another on the main gaming floor at Sky City Auckland and nobody in authority batted an eyelid. A strap is 100, 100 dollar notes. One strap is $10,000. A brick is 40 straps. i.e. a brick is $400,000. I suspect a lot of bricks get "washed" upstairs in the high rollers room which is closed to the general public. My father always used to call these places dens of iniquity. I find it difficult to believe that many straps and bricks of money come from legitimate sources of revenue...
A real "SIN" stock. One to definitely avoid if you value your soul, in my opinion. Where there's smoke there's usually fire and in SKC's case that's been more than just a metaphor, Karma ?
Two South Australian MPs have called for a royal commission into the operations of the Adelaide casino
https://www.abc.net.au/news/2021-06-...sino/100195002