SKC - Sky City

[Balance]

http://nzx-prod-s7fsd7f98s.s3-websit...201/320261.pdf

Good to see SKC taking action to 'right-size' its expenses base during the lockdown and for post the lockdown.

Acceptance that it is going to take a while for the business to recover.

[vorno]

Auckland
• Visitation to the precinct down around 15%
• Electronic gaming machine revenue down 14%
• Domestic table and automated table game revenue down 43%
• Hotel revenue down 19% with average occupancy of 79%
• Food, beverage and conventions revenue down 32%
• Sky Tower revenue down 35%

Not a pretty picture.

Sold out at a loss at $3.17 as I felt it was going below $3, never expected it would go this low.
Intend to buy back but not just yet.

When will you buy back is the question?
...Just as well you sold at $3.17

[Biscuit]

Not a recommendation, as what do I know, but I bought some today. Hard to say no at that price. Even if all SKC revenue was written off for a whole year that would not come close to the value that has been wiped off this company recently. I know that we are in a bear market and that they will likely be cheaper tomorrow and cheaper again the next day and ..... but these prices look good enough for me.

Sold back what I bought in March, today. The sp has bounced up quite well and there is still a hard road ahead for them I reckon. Level 3 is not going to help them I don't think. Things are going so well in NZ with getting on top of COVID-19 everyone has got their rose-tinted glasses on i think.

[carrom74]

Sold back what I bought in March, today. The sp has bounced up quite well and there is still a hard road ahead for them I reckon. Level 3 is not going to help them I don't think. Things are going so well in NZ with getting on top of COVID-19 everyone has got their rose-tinted glasses on i think.

Sold mine too. Even in level 3 i doubt they will be open and going by the media reports, the unions will be hunting down the management- the way the staff have been fired without any consultations... Tough going for SKC for sure...(NZICC fire seems just a smoke if compared with the present scenario)

[clip]

SKC looking to do an AIR, good for a quick trade

[bull....]

I agree skc needs a capital raising

$1b wiped from SkyCity - dividend suspension, capital raising forecast

https://www.nzherald.co.nz/business/...ectid=12330260

[Cadalac123]

I agree skc needs a capital raising

$1b wiped from SkyCity - dividend suspension, capital raising forecast

https://www.nzherald.co.nz/business/...ectid=12330260

wow who would have thought, with the 100% share price increase recently , didn't that mean skycity is a booming company /sarcasm

[huxley]

Hmmm, they had over $400m liquidity and they are burning through about $20-$30m a month. So they should be all good for a wee while. Long term this IS a good value play, hence the share price movement. They’ll be back to paying 20-15c pa dividends in a year or two

[Balance]

Sobering.

https://www.nzherald.co.nz/business/...ectid=12330899

"Casino operator SkyCity Entertainment Group has revealed "incredibly difficult" plans to slash another 700 jobs which a union says is mainly in Auckland and almost a third of the approximately 3000 part and full-time jobs there.

The company is blaming "weaker economies, lower personal disposable income, changed entertainment habits, restrictions on mass gatherings and physical distancing requirements" and long-term travel restrictions for the decision."

[dompf]

Sobering.

https://www.nzherald.co.nz/business/...ectid=12330899

"Casino operator SkyCity Entertainment Group has revealed "incredibly difficult" plans to slash another 700 jobs which a union says is mainly in Auckland and almost a third of the approximately 3000 part and full-time jobs there.

The company is blaming "weaker economies, lower personal disposable income, changed entertainment habits, restrictions on mass gatherings and physical distancing requirements" and long-term travel restrictions for the decision."

I think many larger companies will be streamlining. Despite the terrible job loss coming at least Skycity are being upfront and proactively realistic about what their future is looking like albeit grim .