(AsiaGameHub) –   SkyCity Entertainment Group has lowered its earnings forecast for FY26, citing softer consumer demand, persistent macroeconomic headwinds, and increased operating expenses in both New Zealand and Australia, as stated in a market update on May 1.

The group’s revised projection for underlying EBITDA in FY26 is NZ$180 million to NZ$190 million (US$106 million-US$112 million), a reduction from its prior estimate of NZ$190 million-NZ$210 million. The anticipated range for reported EBITDA has also been adjusted downward to NZ$155 million-NZ$165 million, from the previous NZ$170.6 million-NZ$190.6 million.

As of March 2026, the company reported a deterioration in its trading environment, largely attributed to higher fuel costs and a decline in discretionary visits to its Auckland and Adelaide venues. The outlook for the rest of the financial year remains unclear.

SkyCity noted “significant uncertainty” regarding the persistence of the current macroeconomic climate. A further deterioration in conditions could continue to negatively impact its performance.

In response, the company has intensified its cost-control efforts, surpassing its previously stated NZ$10 million savings goal for FY26. It is now implementing further efficiency measures in both operational and corporate areas with external support.

An update on the company’s asset monetisation strategy confirmed a non-binding agreement has been reached for the possible sale of its 99 Albert Street office building and another investment property on Victoria Street. SkyCity is also gauging potential interest in The Grand Hotel.

The company also confirmed that New Zealand’s Online Casino Gambling Act took effect on 1 May 2026, with the licensing process expected to begin at the start of 2027.