SkyCity Entertainment Group expects more Covid-19 alert lockdowns, with a return to normal more than a year away.
“It’s really only 2022 that we expect to be back under full strength,” chief executive Graeme Stephens said to investors in a virtual meeting. “We feel well-positioned to ride out what is ahead of us. I think it will be FY2022 before we have any realistic prospects of [returning to] where we were in FY19.”
The priority for 2021 is to remain open, according to the New Zealand Herald.
“We won’t be spending a lot of capital. Let’s just get through this period and position ourselves for a future beyond this,” Stephens said. “We will not be paying an interim dividend. If we’re able to stay open and trade we are anticipating a final dividend of FY21.”
Last year’s meeting was totally different. It was in-person and the company flourished. A week later a $750 million fire destroyed the NZ International Convention Centre.
“We were going really well again by January/February and then we all know what happened next,” Stephens said referring to the pandemic breakout and alert level 4 in late March.
The company furloughed a quarter of its workforce.
“We restructured and downsized,” he said.
SkyCity became one of the first casinos to reopen, serving as a model for the rest of the world. The online component also did well, turning a profit on a monthly basis, said chief operating officer, Michael Ahearne.
Performance in Auckland following the second lockdown cost at least $20 million, Stephens said.
“Fortunately we had things like wage subsidies to help us through,” he said.
Work on new VIP areas continues during the lockdown. Stephens said facial recognition systems had been implemented across all sites to minimize harm from problem gambling. Fletcher Construction was making progress on the Horizon Hotel, which should open next year as well as the convention center, set for a late 2023 opening, he said.
Food Republic, a new food court, and a new bar, Flare, would open in Auckland soon, Stephens said.
Adelaide general manager David Christian said a $300 million-plus project would open next month, with a new hotel, restaurants and bars. The venue will also feature expanded conference opportunities, a spa and international gaming salons.
