That's actually a form of advertising, that email. A lot of people will see it and be reminded to put a bet on.
Printable View
Tab turn over could be up this week ....
own goal for DIA....
How much would Sky be worth without its gambling division?
Gee what a shame...so sad...what a surprise.
BTW...What would be the profile of the typical punter.
Are shareholders comfortable about making money from the most vulnerable.
Be interesting to know if there was ministerial advise sort by DIA..
In someway I look at the whole thing about KiwiSaver or people won’t invest in this or that. Give me the maximum results I can get for my future.
It is not that I don’t care about people, it is that whatever I choose to invest in makes little to no difference to the organisation I have invested in. It is like saying I won’t invest in restaurant brands because it makes people fat. How you choose to spend your money is none of my business and I can’t change you if you wish to gamble it is up to you to want to change. I haven’t invested yet but it’s on my watch list
Yes there is a a whole "thing" here. Ethical investments vs investments for your own gain. So where are you going to draw that line? Do you invest in oil and gas? Mining? Clothing or other producers with third world labour? Junk food companies? Arms and militia? Plastic producers? Farming? I bet you could probably find someone who has an ethical issue with just about every company listed.....
Ok..I'm not a raging socialist..however I believe it's plainly obvious that a significant percentage of our population ...are well not well equipped...to deal with so many issues..folk on this site find normal..mundane..I'm not sure what the answer is...but one thing is certain...there will be consequences.
These sort of comments very annoying, people getting on their high horse because they don't approve of what people choose t invest in.
Every time you get in your car you create pollution which will hurt the most vulnerable. Where does it end?
This low life that complained was happy to sit there for hours, yet is now blaming someone else for his own problems, and the woke brigade try to punish one of our prominent entertainment companies, because it trendy to be anti gambling.
Low lifes you detest obviously...How does it end....? NZ has one of highest prison incarceration rates in the world....at 3k each a week.
Mate...Where does it end...?
You like me pay for it.
So 1 person complains to the DIA that the casino allowed them to gamble for long periods. The Secretary then believes thats enough to shut the place down. OTT.?
Presumably one of the possible reasons why the complainant is a "former customer" is as a result of an effective implementation of SKY's "Host Responsibility Programme".ie: the punter was banned.
This has a faint scent of someone being in lala land. Can costs of the action be sheeted back home to the complainant in the event of a vextatious ruling...?
This reminds of a classic situation some 25 odd years back when a punter in his pjamas living with his elderly Mum in a 2 bedroom brick n tile unit in Mt Roskill launched an unconditional takeover bid for RBD. The Company felt obliged to announce it to the market in compliance with the continuous dislcosure reg's but upon investigation it became clear the bloke didn't have sufficient finance lined up for the bid other than his plastic piggy bank.
Oversold here imo.
GLTA.
The chance of ex gamblers forthcoming are pretty high...once the news out...all the people will join the force, claiming the bucks that they lost at the casino.
Just like prince Andrew sex scandal....one news out .... literally many women came forward n claim the scandal real just to get $$$
The same with WINZ clients...they could claim the supermarket failed to stop them spent thier benefits money on buying alcohol n ciggies
Not a shareholder
I believe in personal responsibility. But know people can form addictions that should not spoil it for the majority Skycity ask you questions before you open a online account.
brought some yesterday , complaint still could end up as a smack on the hand once gone thru the process and anyway 10 days of suspension is the worst case.
at the end of the day gambling has been around since adam and eve so i dont think sky city is going away
My take is that this is far more serious than how they manage gambling addicts. The article refers to money laundering.
The Sydney casino years ago was done for not reporting suspicious gambling where one of the biggest drug gangs was regularly laundering $20M at a time and it not being reported. Like banks Casino's are required to report any cash transaction over $10K or what they just deem suspicious.
https://www.nzherald.co.nz/business/...d=csdqp4ku614y
so if they have to report any cash transaction over 10k then nothing to worry about. they were following the law
anyway the announcement made for some good volumes for people who wanted to get in for the div ex 7/9 and remember max fine if i mean if implemented is roughly 10m if you go of reports they make a mil a day
Seems Sky got caught out in 2020 but bought their way out of being suspended (ie a settlement) ….and didn’t tell shareholders they had breached thevregulations
Article mentions changes to top management after that incident though not specifically linked
https://www.nbr.co.nz/investment/dia...ement-in-2020/
I go to Skycity Auckland two or three times a year mainly playing roulette and/or blackjack.
My point is they may not have been reporting suspicious transactions at the Adelaide Casino.
https://indaily.com.au/news/2023/05/...undering-case/
the 50m provision in the accounts means all this is already factored in the price probably.
anyway im feeling very hungry having watched the skc price intently from my screens so i need to go buy a fatty kfc family pack for lunch , maybe wash it down with some of there watered down soft drink
"exactly wouldnt surprise me if they do a negotiated settlement again if they are proven in the wrong"
No doubt about it they wont get away without money even if they arnt proven in the wrong. Money has to change hands unless SKC takes it to the courts...
There are a lot of organisations that want that license to print money and who knows how deep the conspiracy goes on this one.....
Did the minister encourage this action? Be interesting to know when the minister became aware of the investigation and was it encouraged and pushed along.
https://www.nzherald.co.nz/nz/man-cl...EW6OEPXY7IGAA/
Mother hell....bad news after another
https://fortune.com/2023/09/13/mgm-c...ed-ransomware/
Not anything that may affect Skycity right now, but it’s a question of when will it. MGM casino apparently losing up to 30 million a day in lost revenue. SKC is small fry in comparison.
SKC will keep falling until $1.00, theres just too much bad sentiment about it and from a ESG perspective,
Fund managers won't go near it, it's not cool
Would love to here how you came up with that magical figure... why don't you endow the rest of us with your magical analysis of one whole, round NZ dollar price estimate rather than just blatant downramping.
Stop spreading disinformation
International Fund Managers have a massive stake in SKC, e.g. Citicorp, JP Morgan, HSBC, BNP Paribas etc.
NZ Fund Managers do too, e.g. ANZ, Accident Compensation Corporation, Forsyth Barr etc
End of the day, why wouldn't it be worth $1? Why's it worth anything ?
It's a casino without a license !
I think you're in for some more negative shocks my friend
shareman you are once again factually incorrect. Why don't you try adding some actual intellect to the thread rather than lies, lies and more blatant lies?
Here are the five casino licenses that Skycity owns:
1. Auckland Casino - valid until 30th June 2048, with renewal until 2063
2. Hamilton Casino - valid until 18 September 2027, with renewal until 2042
3. Queenstown Casino - valid until 6 December 2025, with renewal until 2040
4. Queenstown Wharf Casino - valid until 11 September 2024, with renewal until 2039
5. Adelaide Casino - valid until 20th June 2085
Read the news, 4 of those casinos are under threat of losing their license,
If anything this is a body blow to the confidence of SKC which is my point,
SKC is trading under book value now. Pretty good value here
Nah, it'll be $1.00 a share in no time, watch it drop, don't catch a falling knife
https://www.nzx.com/announcements/419988
CEO jumping ship....
Al buying more.....
http://nzx-prod-s7fsd7f98s.s3-websit...752/406110.pdf
Allan is by definition a Contrarian Fund manager - that's how they differentiate themselves from other funds in the market.
So always expect them to front up when others are fleeing!
https://www.allangray.com.au/b/performance/
Positive news for Sky City for once
https://www.nzx.com/announcements/422714
Great news and I had no doubt this would be the outcome, Macquarie were always trying to double dip.
https://www.nzx.com/announcements/423144
SkyCity Entertainment Group Limited (SkyCity) advises that, following the completion of the first five months of trading across the Group, it now expects Group normalised EBITDA for FY24 of between $290 million and $310 million. This compares to Group normalised EBITDA of $310 million in FY23 and previous guidance on 27 October 2023 of a modest year-on-year increase in Group normalised EBITDA for FY24.
The key drivers to this change in earnings guidance are:
-a reduction in electronic gaming machine revenue across the New Zealand sites, reflecting continued cost-of-living pressures and economic uncertainty, which is impacting discretionary consumer spending;
-a weaker than expected performance in the Adelaide property based on a lower revenue outlook with continued legal and compliance cost pressure. SkyCity continues to review the cost base for the Adelaide business;
-a delay in the settlement of the termination of the Auckland Car Park Concession Agreement with MPF Parking NZ Limited (Macquarie), resulting in lower car park earnings. Notwithstanding the recent High Court judgment in SkyCity’s favour, there remains uncertainty regarding the timing for the reacquisition of the SkyCity Auckland car park assets given further recent actions from Macquarie to delay resolution of this matter; and
-accelerated investment in the Group’s New Zealand online gaming operations ahead of the potential regulation of the online gaming market in New Zealand. Whilst potential regulation remains at an early stage, SkyCity is optimistic about the medium-term earnings opportunity this offers the Group.
SkyCity currently expects Group normalised NPAT for FY24 of $125 million to $135 million. This reflects the lower level of financing costs due to the delay in settlement of the Auckland Car Park Concession Agreement, which partially offsets the lower earnings of the Auckland Car Park assets.
SkyCity will provide additional detail on these key drivers as part of its FY24 interim result release in February 2024.
The updated Group normalised EBITDA and NPAT guidance does not reflect the impact of any potential temporary suspension of SkyCity Casino Management Limited’s casino operator’s licence in New Zealand, which is currently being considered by the Gambling Commission following an application made by the Department of Internal Affairs in September 2023 (for a period “in the range of 10 days”, as previously flagged to the market on 3 September 2023).
Due to the uncertainty around the potential adjustments required as part of SkyCity’s accounting processes, SkyCity is unable to provide an update for FY24 reported (statutory) results at this time.
Bit of a profit downgrade eh Bob …..the modest ebitda increase over F23 now likely to be a modest decrease
I visited the Auckland casino 3 times this week during daytime hours.
Compared to any other daytime visits, it seemed to be ticking over quite well.
Plenty of $5 a push buttons getting a hammering.
$17M of jackpots paid out last month makes Lotto look a bit tame!
Needless to say, l left a donation behind for shareholders...
Update on Oz proceedings against Sky City Adelaide - settlement in principle reached and subject to court approval.
Provision increased to A$73m or NZ$79m but no loss of operating license as feared by some commentators.
Provision is about half of the $150m estimated by analysts.
https://www.nzx.com/announcements/425626
In accordance with the requirements of accounting standard NZ IAS 37 in connection with the preparation of SkyCity's financial statements for the six months ended 31 December 2023, SkyCity has revised its provision for a potential AUSTRAC civil penalty and associated legal costs from A$45 million (NZ$49 million) as at 30 June 2023 to A$73 million (NZ$79 million) as at 31 December 2023.
a step in the right direction.
just need to get the 10 day NZ suspension over with, complete the odd ongoing independent review, & assuming SKC take their medicine and learn from it, the significant regulatory overhang/discount should dissipate over time (in my view).
although needs to be said, SKC NZX announcements the last few years have been a bit like whack a mole....never know what you are going to get and sometimes it pops out pops you in the nose
So let me get this straight in my head.
Sky and AUSTRAC the people after skys money have got together and agreed how much AUSTRAC wants, and SKY has set aside 79M to cover this plus legal fees.
However ultimately the court will decide, so it maybe less than the figure AUSTRAC want. Question is, is there a possibility that the court will give AUSTRAC more than the Two sides have agreed upon?
Have I understood it correctly?
This thing is on a huge surge. Im back to breakeven on my small parcel of shares.
I dont understand why its going up though. Lots of uncertainty still out there. Volume pretty low so its not the big boys buying in?
https://www.nzx.com/announcements/425971
SkyCity Entertainment Group Limited (SkyCity) has been informed by the New Zealand Department of Internal Affairs (Department) that it intends to file civil penalty proceedings in the High Court against SkyCity Casino Management Limited (SCML) for non-compliance by SCML with the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (Act) on 16 February 2024. The Department’s proposed enforcement response follows a review of SCML’s compliance with the Act.
SCML is a subsidiary of SkyCity and the holder of the casino operator’s licence for the SkyCity Auckland, SkyCity Hamilton and SkyCity Queenstown casinos in New Zealand.
Draft pleadings have been provided to SkyCity setting out five separate causes of action. Those causes of action allege significant compliance issues in relation to the Act. These are largely, although not exclusively, historical matters. Some matters relate to incidents of non-compliance which have previously been self-reported to the Department.
Since late 2021, SkyCity has had in place a significant AML/CFT enhancement programme to address compliance systems and correct historical shortcomings. This has involved, and continues to involve, significant investment in people and technology, and various reviews of SkyCity’s processes and systems to identify areas which require improvement.
SkyCity is disappointed that it has not met the standard to which it needs to hold itself, and this has resulted in the action taken by the Department. SCML and SkyCity will engage constructively with the Department in relation to the proposed proceedings, with a view to resolving these matters expeditiously. Given that the matter will be before the Court, it would be inappropriate for SkyCity to comment further at this stage.
In the event the Department’s claim was to be accepted in whole or in part by the High Court, SCML would be subject to a civil penalty to be imposed by the Court as set out in subpart 3 of the Act. Under the Act and relevant case law, SkyCity and the Department assess SkyCity's maximum liability in relation to these claims as being NZ$8 million in aggregate.
SkyCity is committed to continuing to uplift its processes and systems, particularly with respect to AML/CFT and host responsibility matters.
Ends
star casino under another investigation gone in halt .... skc adelaide again next ?
https://www.nzx.com/announcements/426619
Reported: Net Profit After Tax: $22.5m (-$0.3m) -1.3%
Underlying: Net Profit After Tax: $66.5m (-$6.2m) -8.5%
I like the guidance for 2024 - $130m NPAT against an EV of $1.45b. P/E of 11 if they can achieve it. Got some upside to come here as the new conf centre and hotel kick in 2025...
This is a buy for me.
Dividend in the bank today.
Next thing to execute was Horizon Hotel to be opening up April, per interim results less than a month ago "Horizon by SkyCity, our new 5-star hotel in Auckland, is planned to open in April 2024", but it looks to only be taking bookings from 16th May on their website.
The Horizon website design is really bad design when trying to book on mobile (it is OK on Desktop) - can someone else confirm it is terrible on their mobile device too or just me?
Sky City's old business model is in deep S***. Article in the news yesterday about how China is cracking down on its citizens gambling overseas. Even though gambling is legal here and many parts of the world, it's illegal in China and its citizens must abide by Chinese law even when overseas. The 2 casinos in Singapore, along with many others around the world, have been warned. Not sure whether Sky City is on the list too.
Take a look at recent presentations and you'll see the China Junket market isn't the primary driver of SKC earnings
aye the Chinese junket days are long gone and some of the VIP trading will never return to pre covid days, and even low end cashy gambling with carded play coming in. I think that's increasingly reflected in the consensus. Depreciation on commercial properties will have an impact on the tax bill and distributable profit. But the business has spent big on new assets (convention centre, hotel etc), used debt to fund, is bearing interest bills now, but none of the profit. That's set to change soon.
another positive is the cabinet has made an in principle decision to regulate online casino gambling, which is a real positive for SKC. NZ is unique amongst the developed world in that we dont regulate on line gambling / casinos, and the Gov has decided to regulate that. According to a broker report there are 10-15 meaningful players (but over 100 total), and that number is expected to drop to sub 5. that could see SKC mktshare go from 7.5% to +30% and more than triple online EBIT to +30m.
There are a lot of headwinds for the business (macro and regulatory certainly) but some good growth areas as well. the opening of its new convention centre and hotel can't come soon enough for the business with all the whack a mole of bad news NZX updates being released.
When is this going to happen, I hope it is not going to stop me placing bets with the likes of bet 365. The TAB is one of the least competitively priced odds makers in the world, no wonder people in NZ have a gambling problem when both teams in a match are paying 1.87
can't come soon enough for the business with all the whack a mole of bad news NZX updates being released
That's bang on, that's been the case since I bought back a fair few years ago. Upcoming America's cup, new convention center and tourism booming + the good cash gen and therefore div yield was my investment thesis. Covid, fires, regulatory trouble/money laundering multiple times, higher interest rates, car parks, esg.... It hasn't stopped for 5 or so years ...
https://www.nzx.com/announcements/429677
SkyCity Entertainment Group Limited advises that Jason Walbridge has today been appointed as Chief Executive Officer.
Jason has more than two decades of senior executive public company experience in the global land-based and online gaming industries. He is currently a Strategic Advisor to global gaming and technology company Aristocrat Leisure Limited on its proposed acquisition of NeoGames S.A, and Executive Chairman of National Entertainment Network LLC, the largest amusement route operator in the United States. He has been appointed to the role after an extensive international search.
SkyCity Board Chair, Julian Cook, said today “the Board is delighted to announce Jason’s appointment as CEO of SkyCity, and we are looking forward to the valuable contribution Jason will make to the business. Jason has extensive global experience in the land-based and online gaming industries, which will position him well to lead SkyCity through its next phases.”
Mr Walbridge commented “it will be a privilege to lead SkyCity, and I am excited to be joining the business at this time as SkyCity looks to pursue the many opportunities ahead of it.”
Mr Walbridge is expected to start in early July 2024, following his move back to New Zealand.
Prior to his current roles, Mr Walbridge held roles with the online gaming supplier NYX Gaming Group Limited and its acquirer Light & Wonder Inc, and before that he spent 18 years with Aristocrat Leisure Limited where he held executive leadership roles in New Zealand and the United States. Previously, he held senior roles within consulting, including with Ernst & Young, and was an Officer in the New Zealand Defence Force. Mr Walbridge holds an MBA in International Management from the Auckland Institute of Studies.
Mr Cook confirmed that Callum Mallett will continue as Interim Chief Executive Officer until Mr Walbridge’s commencement date. “I’d like to thank Callum for his continued leadership and his support during this period.”
Mr Walbridge’s confirmation as CEO is subject to the usual regulatory approvals.
ENDS
Is this the latest company with trouble brewing
Another casino operator is in trouble. Nobody is talking about it
until last week the company lacked a permanent chief executive, a chief financial officer or a local chief operating officer. And the board is in a state of flux too – SkyCity chairman Julian Cook says he will to step down once a new chief executive takes over.
The most worrying sign for SkyCity shareholders is the attitude of its banks. Sources close to the casino group, not authorised to speak publicly about the matter, say that the company is having trouble convincing lenders to loan it money.
https://www.afr.com/companies/games-...0240419-p5fl81
One of the analysts on The Bull has SKC as a sell....even at $1.70 AUD
https://thebull.com.au/18-share-tips/22-april-2024/
On February 1, 2024, SKC announced it had revised its provision for a potential civil AUSTRAC penalty and associated legal costs from $A45 million on June 30, 2023, to $A73 million at December 31, 2023. The casino operator’s revised provision is an estimate of the potential exposure to penalties and legal costs. AUSTRAC filed civil penalty proceedings against SkyCity Adelaide, alleging contraventions under the Australian Anti-Money Laundering and Counter-Terrorism Financing Act. Reported revenue and profit from continuing operations fell marginally for the six months to December 31, 2023, when compared to the prior corresponding period.
$AU67 million fine
https://announcements.nzx.com/detail/431290
https://www.afr.com/companies/games-...0240520-p5jf09
Competitor Star getting some takeover interest. Could we see similar for SKC?
https://www.nzx.com/announcements/431368
$4M fine; better than the expected 10-day suspension.
slowly being de-risked.
Good grief ….no divies for a while from a stock many held for the dividend
https://api.nzx.com/public/announcem...366-420265.pdf
This is going to be a great buy at some point. I have a $1.50 target (to buy at). NZ monopoly casino for gawds sake. How can they loose.
Holding a small parcel already and bleeding slowly..... lol
$1.50 would be awesome. Might be some more bad news to come, as 2025 is going to be nasty for the economy.... no hurry IMO
Poor trading conditions is making Skycity Auckland more greedy with their EGM which can control payouts ...met many regulars who claim that machines are not behaving normal ...coming from LT players mean there. cud be some truth ...so many have decided to stay away or go online way ...Maybe. case of farmer killing the golden goose ...business will suffer .
holy smoke $1.44.... sadly dont have any $$ to hand, which might be a good thing....
Lets see big Alan Gray rush under this falling piano first ..... their portfolio must be getting absolutely smoked KMD, Fletcher, SKC. Long term though bro.. no worries, cheaper is better bro... back up the truck.... fearful/greedy etc etc..