SkyCity to divest non-core businesses, focus on major projects

Casino operator SkyCity Entertainment Group says it is looking to adopt a “asset-lighter” approach to improve returns and allocate capital more efficiently.

During an investor presentation held on Tuesday, SkyCity said it is seeking to monetize selected property assets and divest non-core businesses in order to fund strategic / growth initiatives.

These include the sale of its Federal St carpark, its Auckland main site car park, and the continued consideration on the sale of its Darwin casino.

Looking ahead, SkyCity says it expects modest growth of FY18 group EBITDA, with near-term growth to be achieved by improving operating performance of existing assets.

It also says it expects a significant increase in Adelaide’s EBITDA following completion of its expansion in FY21 – which includes a A$330 million revamp of the Adelaide casino.

Meanwhile, SkyCity has also announced that is plans to raise wages for staff on the minimum wage -currently $16.50 an hour, by about 7 percent over the next three years.

By 2020, staff will see around $20 an hour for the lowest tier.

About 1750 of the company’s 4000 staff members are on the minimum wage at present, according to a report from Radio NZ.