SKC - Sky City

[ratkin]

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.

Only thing putting me off is all the anti gambling sentiment, but now labour gone maybe it will ease up a little

[Norwest]

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?

[mikelee]

Only thing putting me off is all the anti gambling sentiment, but now labour gone maybe it will ease up a little

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.

[moimoi]

Take a look at recent presentations and you'll see the China Junket market isn't the primary driver of SKC earnings

[Muse]

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.

[ratkin]

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.

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

[NZSilver]

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 ...

[Sideshow Bob]

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

[bull....]

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

[winner69]

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

Can’t be true bull ….a den of iniquity in turmoil running out of cash

Shares are dirt cheap I hear ..but I’m not buying