INTERIM RESULT FOR THE SIX MONTHS ENDED 31 DECEMBER 2018

13 February 2019

Client Market Services
NZX Limited
Level 1, NZX Centre
11 Cable Street
WELLINGTON

Copy to:
ASX Market Announcements
Australian Stock Exchange
Exchange Centre
Level 6
20 Bridge Street
Sydney NSW 2000
AUSTRALIA

Dear Sir/Madam

RE : SKYCITY ENTERTAINMENT GROUP LIMITED (SKC)
INTERIM RESULT FOR THE SIX MONTHS ENDED 31 DECEMBER 2018

Please find attached the following information relating to SKYCITY Entertainment
Group Limited’s result for the six months ended 31 December 2018:

1. NZX Appendix 1 (as required by NZX Listing Rule 10.3.2) detailing the
preliminary announcement;

2. 1H19 Result - Investor Presentation;

3. 1H19 financial statements and notes;

4. NZX Appendix 7 (as required by NZX Listing Rule 7.12.2) detailing the interim
dividend of NZ 10.0 cents per ordinary share to be paid on 15 March 2019 to
those shareholders on the company’s share register as at 5pm (NZ time) on
1 March 2019. The company’s Dividend Reinvestment Plan will not be activated
in respect of the interim dividend; and

5. a market announcement (for the purposes of NZX Listing Rule 7.6.2) concerning
the company’s intention to undertake an on -market share buy back programme
from 18 February 2019 to 31 December 2019.

SKYCITY is hosting a conference call for investors and analysts today at 12.00 noon
(NZ time) to discuss the 1H19 result. Details for this call were released on the NZX
and ASX on 14 January 2019.

Yours faithfully

Rob Hamilton
Chief Financial Officer

---

SKYCITY Entertainment Group Limited
Results for announcement to the market
Reporting Period 1 July 2018 to 31 December 2018
Previous Reporting Period 1 July 2017 to 31 December 2017

Reported Amount (millions) Percentage change
Reported revenue including
gaming GST from ordinary
activities
2

NZ$460.2 1.0%
Reported revenue from ordinary
activities
1 2

NZ$411.4 0.3%
Reported profit (loss) from
ordinary activities after tax
attributable to security holders
2

NZ$68.8 -18.9%
Reported net profit (loss)
attributable to security holders
3

NZ$82.8 -11.4%

Normalised
3
Amount (millions) Percentage change
Normalised revenue including
gaming GST from ordinary
activities
NZ$598.0 10.9%
Normalised revenue from ordinary
activities
NZ$541.2 10.4%
Normalised profit (loss) from
ordinary activities after tax
attributable to security holders
NZ$97.0 11.4%
Normalised net profit (loss)
attributable to security holders
NZ$97.0 11.4%



.








Notes:
- ‘Reported’ information is per the unaudited financial statements
- ‘Normalised’ results sets International Business win to theoretical win rate of 1.35% and adjusts for
certain revenue and expense items. Reconciliation between reported and normalised financial
information is provided at the end of this document
- ‘EBITDA’ = Earnings before interest, tax, depreciation and amortisation
- ‘EBIT’ = Earnings before interest and tax
- ‘NPAT’ = Net profit after tax
- Certain totals, subtotals and percentages may not agree due to rounding


1
On the Income Statement this is the total of Revenue, Other income and Share of losses from associates
2
Excludes Darwin operations treated as discontinued operations
3
Includes Darwin operations

Interim Dividend Amount per security Imputed amount per security
NZ$ 0.10 $0.038889

Record Date 1 March 2019
Payment Date 15 March 2019

Comments: SKYCITY’s 1H19 performance is set out in the
Company’s Investor Presentation which is attached to
this announcement. It provides detail and explanatory
comment on operating and financial performance for
each business unit and the Group as a whole and
various other relevant aspects of the financial
performance for the six months ended 31 December
2018.

The Investor Presentation will be available on the
Company’s website from 13 February 2019.


NTA Backing
2018 2017

Net tangible asset backing per ordinary share

$0.569

$0.446

Auditors
This report is based on accounts that have been the subject of a review by the company’s
auditor. Their review report is provided with this report.

Earnings per share
Amount (cents per
share)
Percentage change
Reported
4
12.3 -11.5%
Normalised 14.3 10.0%

Reported earnings per share from continuing operations for the six months to 31 December
2018 were 10.2 cents per share (31 December 2017: 12.6 cents per share). Normalised
earnings per share for the six months to 31 December 2018 were 14.3 cents per share (31
December 2017: 13.0 cents per share). “Normalised” eliminates certain revenue and expense
items and adjusts International VIP commission business win rate to theoretical.

Dividends
100% of the March 2019 dividend will be imputed at the company’s New Zealand tax rate of
28% and not franked for Australian purposes.

The company’s Dividend Reinvestment Plan will not be activated in respect of the interim
dividend.

4
Includes both continuing and discontinuing operations on the Income Statement

Reconciliation between Reported and Normalised Financial Information




SKYCITY’s objective of producing normalised financial information is to provide data that is
useful to the investment community in understanding the underlying operations of the Group.

Total revenues are gaming win plus non-gaming revenues.

Application of the group’s non-GAAP financial information policy is consistent with the
approach adopted in FY18.


1H19 adjustments (from reported to normalised)

• Apply theoretical win rate of 1.35% for IB vs. actual win rate of 0.98%
• Remove one-off payment to the ATO following tax review (A$3.5m)
• Eliminate benefit from ceasing Darwin depreciation following classification as
discontinued operation (from November 2018)
• Eliminate benefit of reversing Darwin’s deferred tax liability following classification as
discontinued operation (from November 2018)
• Reverse impact of NZIFRS 15 “Revenue from Contracts with Customers” which reduced
both reported revenue and operating expenses within IB
• Include Darwin in revenue, EBITDA, EBIT and NPBT instead of treating as discontinued
operation


1H18 adjustments (from reported to normalised)

• Apply theoretical win rate of 1.35% for IB vs. actual win rate of 1.70%



1H191H18
Revenue
$m
EBITDA
$m
EBIT
$m
NPAT
$m
Revenue
$m
EBITDA
$m
EBIT
$m
NPAT
$m
Reported460.2148.3107.782.8455.7161.6
121.493.5
IB at theoretical win rate28.023.423.416.8(15.3)(9.4)(9.4)(6.4)
ATO tax review3.9
Darwin depreciation(1.8)(1.8)
Darwin deferred tax(4.8)
NZIFRS 15 –revenue adjustment44.731.2
Darwin –discontinued operation65.117.412.667.819.012.1
Normalised598.0189.1141.997.0539.4171.2
124.187.0

---

SKYCITY
Entertainment
Group Limited
SKYCITY
Entertainment
Group Limited
SKYCITY Entertainment Group Limited
1H19 Result –Investor Presentation
13 February 2019

2
2
Important Information
◼Average NZ$ vs. A$ cross-rate for 1H19 = 0.9291 and 1H18 = 0.9141
◼Weighted average number of shares
(1)
for 1H19 = 676,386,477 and 1H18 = 665,907,545
◼Revenue (incl Gaming GST), calculated as gaming win (incl GST) plus non gaming revenue (excl GST), is
shown to facilitate Australasian comparisons
◼NZIFRS 15 “Revenue from Contracts with Customers” has been adopted for FY19, with implications for
reported revenue and operating expenses within IB
◼Darwin has been treated as a discontinued operation from 8 November 2018
◼Normalised revenue and earnings adjusted for IB at the theoretical win rate of 1.35% versus an actual win
rate of 0.98% in 1H19 (1H18: 1.70%) NZIFRS 15, Darwin classification and certain other items (see pages 9-
10 for more details)
◼EBITDA margin is calculated as a % of revenue (incl Gaming GST) to facilitate Australasian comparisons
◼Certain totals, subtotals and percentages may not agree due to rounding
(1) Excludes treasury shares

3
3
Contents
Appendices
4
27
Group Strategy Update
16
1H19 Key Achievements
Outlook
17
1H19 Results
5

4
4
1H19 Key Achievements
Strong financial performance for six-month
period − normalisedNPAT up 11.4%
Ongoing focus on efficient capital
allocation − buy-back of up to 5% of total
shares
Successfully progressed key
strategic initiatives − sale of Darwin and
Auckland car parks
Good progress on major projects in
Auckland and Adelaide
Continue to enhance CSR initiatives −
intention to go carbon neutral in NZ for
FY19 (group by FY20)
New senior management appointments –
property, online, IB Asian sales

1H19 Results

6
6
Results Overview
(1)
1H191H18Movement
$m$m$m%
Normalised Revenue (incl Gaming GST)598.0539.458.510.9%
Normalised EBITDA189.1171.218.010.5%
Normalised NPAT
(2)
97.087.010.011.4%
Normalised EPS14.3cps13.0cps1.3cps10.0%
)
1H191H18Movement
$m$m$m%
Reported Revenue (incl Gaming GST)460.2455.74.51.0%
Reported EBITDA148.3161.6(13.3)(8.2%)
Reported NPAT82.893.5(10.6)(11.4%)
Reported EPS12.3cps13.9cps
(1.6cps)(11.5%)
Interim Dividend DPS10.0cps10.0cps0.0cps0.0%
(1) See pages 9-10 for a reconciliation of normalised and reported results
(2) When adjusted for post-tax accounting impact of interest currently being capitalised on major projects, 1H19 Normalised NPATup 9.7% on the pcp to $86.9m (vs. $79.2m in 1H18)

7
7
1H19 Revenue by Business
(1)
1H19
$m
1H18
$m
Movement
%
Properties (excl IB)
Auckland307.7289.96.2%
Hamilton31.630.63.1%
Queenstown/other6.36.30.1%
Adelaide (A$)77.978.1(0.2%)
Total Property Revenue (continuing operations) (excl IB)
429.5412.34.2%
Normalised IB Revenue103.359.374.3%
Total Normalised Revenue (continuing operations) 532.8471.613.0%
Darwin (A$) (excl IB)60.462.0(2.6%)
Normalised Revenue 598.0539.4
10.9%
NZIFRS 15 –revenue adjustment
(2)
(44.7)(31.2)
Non-GAAP adjustments
(2)
(93.1)(52.6)
Reported Revenue460.2455.71.0%
(1)Including Gaming GST
(2)See pages 9-10 for more details

8
8
1H19 EBITDA by Business
1H19
$m
1H18
$m
Movement
%
Properties (excl IB)
Auckland138.0131.05.3%
Hamilton14.013.72.4%
Queenstown/other1.21.018.0%
Adelaide (A$)12.413.0(4.9%)
Total Property EBITDA (continuing operations) (excl IB)
166.5159.94.1%
Normalised IB EBITDA24.79.4164.5%
Corporate Costs
(16.7)(15.1)(10.3%)
NZICC/Horizon Hotel Operating Costs
(2.0)(1.2)(62.4%)
Total Normalised EBITDA (continuing operations) 172.5153.012.8%
Darwin (A$) (excl IB)15.416.7(7.7%)
Normalised EBITDA189.1171.2
10.5%
Non-GAAP adjustments
(1)
(40.8)(9.6)
Reported EBITDA148.3161.6(8.2%)
(1)See pages 9-10 for more details

9
9
◼SKYCITY’s objective of producing normalised financial information is to provide data that is useful to the
investment community in understanding the underlying operations of the group
◼Application of the group’s non-GAAP financial information policy is consistent with the approach adopted
in FY18
◼1H19 adjustments (from reported to normalised)
•Apply theoretical win rate of 1.35% for IB vs. actual win rate of 0.98%
•Remove one-off payment to the ATO following tax review (A$3.5m)
•Eliminate benefit from ceasing Darwin depreciation following classification as discontinued operation
(from November 2018)
•Eliminate benefit of reversing Darwin’s deferred tax liability following classification as discontinued
operation (from November 2018)
•Reverse impact of NZIFRS 15 “Revenue from Contracts with Customers” which reduced both reported
revenue and operating expenses within IB
•Include Darwin in revenue, EBITDA, EBIT and NPBT instead of treating as discontinued operation
◼1H18 adjustments (from reported to normalised)
•Apply theoretical win rate of 1.35% for IB vs. actual win rate of 1.70%
Reported and Normalised Earnings

10
10
Reported and Normalised Earnings (cont.)
1H191H18
Revenue
$m
EBITDA
$m
EBIT
$m
NPAT
$m
Revenue
$m
EBITDA
$m
EBIT
$m
NPAT
$m
Reported
460.2148.3107.782.8455.7161.6121.493.5
IB at theoretical win rate
28.023.423.416.8(15.3)(9.4)(9.4)(6.4)
ATO tax review
3.9
Darwin depreciation
(1.8)(1.8)
Darwin deferred tax
(4.8)
NZIFRS 15 –revenue adjustment
44.731.2
Darwin –discontinued operation
65.117.412.667.819.012.1
Normalised
598.0189.1141.997.0539.4171.2124.187.0

11
11
Results Commentary
New Zealand Properties
▪Auckland: Record EBITDA with improved gaming activity (+6% vs. pcp), particularly in EGMs and a positive
non-gaming performance
▪Hamilton: Modest growth vs. strong pcp − record EBITDA with positive EGM performance (+7%)
▪Queenstown: Positive EBITDA performance driven by increased table games activity and cost control
Group
▪Strong financial performance for six-month period
▪Normalised EBITDA growth of 10.5% (up 12.8% excl Darwin)
▪Key drivers were strong results in IB and Auckland and positive performance in Adelaide on a like-for-like
basis, offset by increase in corporate costs
Australian Properties
▪Adelaide: Adjusting for staff restructuring costs, EBITDA up 8% on a like-for-like basis despite construction
disruption –stable local gaming activity and focus on cost control
▪Darwin: Satisfactory performance in difficult trading conditions

12
12
Results Commentary (cont.)
Dividends and Capital Management
▪Fully-imputed interim dividend of 10cps, payable 15 March 2019
▪Dividend Reinvestment Plan currently not available for interim dividend (reliance on safe harbour
provisions for Auckland car parks sale)
▪Refreshed capital allocation framework agreed with the Board
▪Plan to buy-back up to 5% of total shares (on NZX) during 2019
Corporate Costs and Other Expenses
▪Higher corporate costs due to corporate bonus provisions (vs. low prior year)
▪D&A flat due to increased capex offset by certain assets being fully depreciated
▪Net interest expense slightly below pcp − capitalised interest of $14m from major projects ($11m in pcp)
▪As previously flagged, changes to tax legislation increased effective tax rate to ~29% (was ~26%)
International Business
▪Record six-month turnover ($7.7bn, +74%) and normalised EBITDA
▪Actual win rate of 0.98% vs. theoretical of 1.35% (and 1.70% in pcp)
▪Significant margin improvement due to operating leverage (from increased volumes) and low bad debts

13
13
Capital Expenditure
◼Growth capex primarily related to NZICC and
Horizon Hotel project, Adelaide expansion
and Auckland property acquisitions
◼Timing of capex on NZICC and Horizon Hotel
project further delayed due to changes to
construction programme
1H19 capital expenditure (NZ$m)
(1)
Projected capex for major projects ($m)
(1) Includes accruals for capital expenditure incurred, but not yet paid
25
31
121
143
0
20
40
60
80
100
120
140
160
180
200
1H181H19
Growth projectsStay-in-business capex
$146m
$174m
398
68
100
127
9
59
19
45
170
37
0
50
100
150
200
250
300
350
400
450
Spent to
FY18
1H192H19FY20FY21+
NZICC & Horizon hotel projects (NZ$)Adelaide expansion (A$)

14
14
Funding and Capital Structure
Movement in net hedged debt (NZ$m)
◼Gross hedged debt of $601m at 31
December 2018
◼Cash at bank of $17m
◼Net hedged debt up ~$140m
reflecting increased capex from
major projects and Auckland
property acquisitions
◼Average interest rate of 6.08%,
reflecting higher cost USPP debt
issued in 2011 (down 13bps vs.
FY18)
447
583
(166)
20
33
59
16
174
0
100
200
300
400
500
600
700
Opening
net debt
(June 2018)
Cash
EBITDA
Gross
funding
costs
Cash taxDividends
(net of
DRP)
OtherCapexClosing net
debt
(December
2018)

15
15
Capital Allocation Framework
◼Significant capital to be sourced from asset sales during FY19 (change from prior years)
◼Expect to have significant surplus cash by end of FY19 (aided by delayed capex on major projects)
◼Future growth investments (i.e. Auckland, Hamilton, Queenstown) still being developed/evaluated
◼Prudent to return some capital to shareholders
•On-market buy-back (on NZX) for up to 5% of total shares during 2019
•Buy-back to partially offset EPS dilution from asset sales and be value-enhancing for
shareholders
Share buy
-
back
Overview
◼Refreshed capital allocation framework consistent with group strategy
◼Committed to maintaining BBB-credit rating and current dividend policy
◼Priorities for allocation of capital (in order) − stay-in-business capex, growth investments, debt
repayments, dividends, capital returns
◼Growth investments required to achieve internal return benchmarks − 12% post-tax IRR and 9%
post-tax ROIC (year 3)

16
16
FY19 Outlook
▪Corporate costs expected to be around $37m, in-line with previous guidance
▪NZICC operating costs expected to be around $5m
▪Net interest expense expected to be around $15m, with $30m of capitalised interest
▪D&A expected to be around $100m
▪Effective normalised tax rate expected to be around 29% (was 26.6% in FY18)
▪Combined NZ properties expected to achieve modest EBITDA growth in 2H19 − Auckland to perform
well, Hamilton to remain capacity constrained
▪Growth expected in Adelaide EBITDA in 2H19 − improved gaming activity, cost efficiencies and
weaker pcp
▪IB inherently difficult to predict but targeting turnover of $13-$14bn for FY19
Properties
Corporate/Other
▪Expect to achieve around 5% growth in normalised group EBITDA in FY19 vs. pcp (assuming Darwin
sale settles on 30 June 2019)
▪Domestic and international economic environment becoming more challenging –2H19 YTD trading
slightly below expectations
▪Growth rates in Auckland and IB expected to moderate in 2H19 due to stronger pcp
▪Normalised group NPAT for FY19 expected to be slightly above pcp (previously slightly below)
▪Plan to continue existing dividend policy with minimum annual dividend of 20cps
▪Maintenance capex expected to be around $80-$85m
Group

Group Strategy Update

18
18
Group Strategic Plan

19
19
Creating Long-Term Value

20
Improve Our Operating Performance
◼Improved marketing/promotions/events − visitation up at
Auckland
◼Ongoing investment in premium gaming across the group
•IB/IS EGMs performance improving
•Planning significant upgrade to Auckland premium
gaming areas
◼Benefits of new EGM product and changes to floor layouts
being realised
◼Ongoing investment in ICT and digital capability
◼Group-wide review of brand completed − refreshed
corporate brand and logo to be launched during 2019
◼Ongoing focus on operating efficiencies to offset cost
inflation in NZ
◼Tables restructuring completed in Adelaide
◼Managing construction disruption in Auckland and Adelaide

21
Optimise Our Existing Portfolio
◼Federal St car park sale ($40m) due to settle in
April
◼Potential sale of long-term concession over car
parks in Auckland progressing well
•Close to selecting preferred party
•Expect to conclude a transaction by end of
FY19
◼Binding agreement to sell Darwin to Delaware
North for A$188m
•Financing condition satisfied
•Regulatory approval process for Delaware
North progressing well
•Expect transaction to settle by end of FY19
•Little Mindil (A$11m book value) being
marketed for sale

22
Optimise Our Existing Portfolio (cont.)
◼Ongoing concept development and feasibility
analysis for Auckland master planning
•Opportunities for further accommodation, F&B,
new gaming spaces and entertainment
•Intend to introduce development partners to
unlock value in precinct
◼Land acquired for future hotel development in
Queenstown − OIO application submitted
◼Progressing master plan in Hamilton to leverage
riverbank opportunity
•Includes potential hotel development, F&B and
entertainment
•EGM business capacity constrained during peak
periods
•Applied to Gambling Commission for change in
product mix (3 tables for 60 EGMs)
◼Chief Property Officer (Peter Alexander)
commenced in January 2019

23
NZICC and Horizon Hotel Project
◼Engaging positively with Fletcher Construction on
project timing/potential claims/broader relationship
◼First tranche of NZICC car parks (~600 spaces)
completed and handed over in December 2018
◼Contractual completion deadlines passed for both NZICC
and Horizon Hotel
•Expect Horizon Hotel to complete within 12 months
•Expect NZICC to open in second half of 2020
◼Remain comfortable with contractual position
•$30m of liquidated damages collected under NZICC
contract
•Horizon Hotel contract provides for $9.5m of
liquidated damages
◼Removing all ACP from NZICC façade –additional cost of
around $25m
◼Subject to resolving ACP, total project cost for SKYCITY
(net of liquidated damages) not expected to be
materially above original budget ($703m)
◼NZICC bookings scheduled for 2020 being reviewed due
to completion delays
NZICC and Horizon Hotel development
site (as at January 2019)

24
Adelaide Expansion
◼Project on-time and on-budget
◼Positive working relationship and
collaboration with Hansen Yuncken
◼Total project costs remain at A$330m
(including contingency)
◼Expect car park to be opened
contemporaneous with expansion in 1H21
(September 2020)
◼SA Government regulatory review
expected to be completed before end of
FY19
◼Master planning continues for existing
building − new F&B venue to open in 2019
Adelaide expansion development site
(as at January 2019)

25
Grow and Diversify Our Business
◼Progressing strategy to grow hotel business
•Medium-term focus on existing casino precincts
(i.e. Auckland, Hamilton, Queenstown)
•Separate hotel brand being finalised
•Remain keen to introduce investment partner
for existing and new hotels
◼Online casino strategy well progressed
•In advanced discussions with preferred offshore
partner
•Support future regulation in NZ
•Online Director (Steve Salmon) hired
◼Non-gaming attractions/partnerships secured for
Auckland (e.g. All Blacks, Weta)
•To ensure long-term relevance and attract new
customers (i.e. families, millennials)
•Further opportunities for F&B and amusement
being considered

26
26
Character and Culture Goals
Offer a great and safe place to
work
Always put customers first
Be responsible leaders in our
communities
◼“Values” refresh underway
with staff
◼ACC Health & Safety review
completed
◼Move to $20 minimum wage
by 2020 in NZ commenced
◼Upweighted focus on mental
health/wellbeing
◼Training programmes and
employment initiatives being
recognised
•Deloitte top 200 award for
Diversity & Inclusion
◼Launch of new executive
performance incentive plan
◼Investing in customer-focused
digital initiatives (i.e. CXM,
web & mobile)
◼Good progress on review of
loyalty programme
◼Continued investment in host
responsibility programme
•Facial recognition
technology near
implementation
•Digital tracking feasible
when ICT rollout complete
◼Carbon footprint now
accurately measured/audited
•Science-based targets set
•Going carbon neutral in NZ
for FY19 (group by FY20)
◼Good progress in reducing
waste
•In Auckland, 500 tonnes of
food waste diverted from
landfill
◼Ongoing investment in youth
development/employment
initiatives

Appendices

28
28
1H19 Results Overview –Normalised
Normalised
1H19
$m
1H18
$m
Movement
$m %
Normalised Revenue (including Gaming GST)
598.0539.458.510.9%
Gaming GST(56.8)(49.0)(7.8)(15.9%)
Normalised Revenue541.2490.450.810.4%
Expenses(352.0)(319.3)(32.8)(10.3%)
Normalised EBITDA189.1171.218.010.5%
Depreciation and Amortisation(47.3)(47.1)(0.2)(0.3%)
Normalised EBIT141.9124.117.814.4%
Net Interest(5.9)(6.2)0.34.6%
Normalised NPBT135.9117.818.115.4%
Tax(39.0)(30.9)(8.1)(26.2%)
Normalised NPAT97.087.010.011.4%
Normalised EPS
14.3cps13.0cps1.3cps10.0%

29
29
1H19 Results Overview –Reported
Reported
1H19
$m
1H18
$m
Movement
$m %
Reported Revenue (including Gaming GST)460.2455.74.51.0%
Gaming GST(48.8)(45.6)(3.2)(7.0%)
Reported Revenue411.4410.11.30.3%
Expenses(263.1)(248.5)(14.6)(5.9%)
Reported EBITDA148.3161.6(13.3)(8.2%)
Depreciation and Amortisation(40.7)(40.3)(0.3)(1.0%)
Reported EBIT107.7121.4(13.7)(11.2%)
Net Interest(5.9)(6.3)0.34.8%
Reported NPBT101.7115.1(13.4)(11.6%)
Tax(32.9)(30.2)(2.7)(8.9%)
Profit from Continuing Operations68.884.9(16.1)(18.9%)
Profit from Discontinued Operations14.08.65.463.2%
Reported NPAT82.893.5(10.6)(11.4%)
Reported EPS12.3cps13.9cps
(1.6cps)(11.5%)
Interim Dividend DPS10.0cps10.0cps0.0cps0.0%

30
30
1H19
$m
1H18
$m
Movement
%
Revenue
Gaming Machines134.7125.77.2%
Tables85.081.14.8%
Gaming Revenue (incl GST)219.6206.76.2%
Non-Gaming Revenue88.183.25.9%
Total Revenue
(incl gaming GST) (excl IB)
307.7289.96.2%
Gaming GST(28.4)(26.7)(6.4%)
Total Revenue
(excl gaming GST) (excl IB)
279.3263.26.1%
Expenses(141.3)(132.2)(6.9%)
EBITDA (excl IB)138.0131.05.3%
EBITDA Margin (excl IB)44.8%45.2%-
Depreciation & Amortisation(23.7)(25.2)-
EBIT (excl IB)114.3105.88.0%
Normalised EBITDA (incl IB)159.6136.716.7%
SKYCITY Auckland
◼Record EBITDA performance for six-month period
◼Record local gaming revenue driven by:
•Strong performance from EGMs continuing on
from a positive 2H18
•Positive tables performance –starting to see
benefit from automated table games
◼Positive non-gaming performance overall
•Restaurant and bar covers up 4%
•Sky Tower visitation up 4% − continues to be #1
Auckland attraction on Trip Advisor
•Hotels continue to outperform peers despite flat
RevPAR –20% new rooms in CBD since 1H18
◼Margins slightly weaker vs. pcp due to higher ICT
costs and increased bonus provision

31
31
SKYCITY Hamilton
1H19
$m
1H18
$m
Movement
%
Revenue
Gaming Machines22.821.37.0%
Tables4.34.8(9.7%)
Gaming Revenue (incl GST)27.126.13.9%
Non-Gaming Revenue4.44.5(1.6%)
Total Revenue
(incl gaming GST) (excl IB)
31.630.63.1%
Gaming GST(3.5)(3.4)(4.3%)
Total Revenue
(excl gaming GST) (excl IB)
28.027.23.0%
Expenses(14.0)(13.6)(3.6%)
EBITDA (excl IB)14.013.72.4%
EBITDA margin (excl IB)44.3%44.6%-
Depreciation & Amortisation(2.3)(2.1)-
EBIT (excl IB)11.711.51.6%
Normalised EBITDA (incl IB)14.213.73.7%
◼Record EBITDA performance for six-month period
− supports plans for future development
◼Growth rates broadly consistent with FY18
◼Strong EGM performance offset by weaker tables
activity
◼New EGM product and improved floor layout well
received by customers
◼EGM business capacity constrained during peak
periods –WPU average remains comparable to
Auckland
◼Non-gaming contribution up vs. pcp following
closure of non-profitable outlets
◼Margins slightly weaker vs. pcp due to higher ICT
costs

32
32
SKYCITY Queenstown/Wharf Casino
1H19
$m
1H18
$m
Movement
%
Revenue
Gaming Machines3.33.3(0.6%)
Tables2.42.34.3%
Gaming Revenue (incl GST)5.75.61.4%
Non Gaming Revenue0.80.8(0.5%)
Total Revenue
(incl gaming GST) (excl IB)
6.56.41.2%
Gaming GST(0.7)(0.7)2.2%
Total Revenue
(excl gaming GST) (excl IB)
5.85.71.0%
Expenses (4.6)(4.7)1.7%
EBITDA (excl IB)1.21.013.6%
EBITDA margin (excl IB)18.0%16.1%-
Depreciation & Amortisation(0.5)(0.5)-
EBIT (excl IB)0.60.528.4%
Normalised EBITDA (incl IB)3.32.624.9%
◼Improved performance driven by increased
table games activity and cost control
◼Continue to benefit from reduced operating
hours at Wharf
◼IB turnover up 18% vs. pcp (8% of group
turnover) highlighting attractiveness of
location for premium/VIP customers

33
33
1H19
A$m
1H18
A$m
Movement
%
Revenue
Gaming Machines26.026.1(0.2%)
Tables41.340.81.3%
Gaming Revenue (incl GST)67.366.80.7%
Non Gaming Revenue10.611.3(5.8%)
Total Revenue
(incl gaming GST) (excl IB)
77.978.1(0.2%)
Gaming GST(6.1)(6.1)(0.8%)
Total Revenue
(excl gaming GST) (excl IB)
71.872.1(0.3%)
Expenses (59.4)(59.0)(0.7%)
EBITDA (excl IB)12.413.0(4.9%)
EBITDA margin (excl IB)15.9%16.7%-
Depreciation & Amortisation(8.8)(8.3)-
EBIT (excl IB)3.64.7(23.4%)
Normalised EBITDA (incl IB) 13.114.6(10.4%)
Adelaide Casino
◼EBITDA up 8% on like-for-like basis
(1)
despite
construction disruption
◼Stable local gaming performance
•Improved premium activity (both EGMs and
tables) offset by weaker main floor
•EGM market share in SA consistent with pcp (at
around 7.0%)
◼F&B revenue weaker vs. pcp due to lack of key
events and closure of certain outlets to
accommodate expansion
◼Margins improved on like-for-like basis
(1)
due to
effective cost management and increased F&B
contribution
◼Regulatory review expected to be completed by
end of FY19 − focus on ‘level playing field’ for SA
vs. other states
(1) ~A$1.7m of one-off restructuring costs incurred in 1H19 but not pcp

34
34
1H19
A$m
1H18
A$m
Movement
%
Revenue
Gaming Machines27.728.6(3.3%)
Tables9.19.6(5.6%)
Keno7.68.0(4.6%)
Gaming Revenue (incl GST)44.446.2(4.0%)
Non-Gaming Revenue16.015.81.4%
Total Revenue
(incl gaming GST) (excl IB)
60.462.0(2.6%)
Gaming GST(4.0)(4.1)3.0%
Total Revenue
(excl gaming GST) (excl IB)
56.457.9(2.6%)
Expenses(41.0)(41.2)0.5%
EBITDA (excl IB)15.416.7(7.7%)
EBITDA Margin (excl IB)25.6%27.0%-
Depreciation & Amortisation(6.1)(6.3)-
EBIT (excl IB)9.310.5(11.1%)
Normalised EBITDA (incl IB)15.516.9(8.6%)
SKYCITY Darwin
◼Satisfactory performance in difficult trading
conditions
◼Local gaming activity slightly weaker due to
softer visitation and increased discounting by
competitors
◼Positive non-gaming activity driven by key
events and effective marketing
◼Hotels continue to trade positively and
outperform peers
◼Margins weaker due to operating leverage
despite focus on cost control
◼Property treated as discontinued operation for
accounting purposes pending settlement of sale
to Delaware North

35
35
Group International Business
1H191H18Movement1H191H18
Turnover$bn$bn%Actual Win %
Auckland6.42.5150.9%
Other NZ 0.70.517.7%
Adelaide (A$)0.50.8(41.6%)
Darwin (A$)0.10.5(72.9%)
Total Turnover7.74.474.3%0.98%1.70%
Total Normalised
Revenue ($m)
103.359.374.3%
Total Reported
Revenue ($m)
75.374.51.0%
1H191H18Movement1H191H18
Normalised EBITDA$m$m%Margin %
Auckland21.65.7276.8%
Other NZ 2.31.631.8%
Adelaide (A$)0.81.8(56.6%)
Darwin (A$)0.00.2(79.6%)
Total Normalised
EBITDA
24.79.4164.5%24.0%15.8%
Total Reported
EBITDA
1.418.8(92.7%)
◼Record six-month turnover and normalised
EBITDA
◼1H19 turnover probably aided by win rate below
theoretical
◼Strong performance driven by:
•Increased use of junkets
•Repeat visits from major customers
•Higher average spend per customer
•Significant margin improvement due to
operating leverage and low bad debts
◼Low bad debts consistent with conservative
approach to credit
◼President Asia Sales and Commercial Strategy
(John Chong) commenced in January 2019

36
36
Debt Maturity Profile
Hedged debt maturity profile as at 31 December 2018 (NZ$m)
◼Committed debt facilities (at
hedged exchange rates) of
$1.1bn at 31 December, with
$601m currently drawn
◼Net hedged debt/LTM
normalised EBITDA of 1.7x
◼Average debt maturity of 3.5
years
$21
$106
$147
$69
$125
$133
$67
$294
FY19FY20FY21FY22FY23FY24FY25FY26FY27FY28
USPPNZ BondBank - DrawnBank - Undrawn
$120

37
37
Disclaimer
◼All information included in this presentation is provided as at 13 February 2019
◼This presentation includes a number of forward-looking statements. Forward-looking statements, by
their nature, involve inherent risks and uncertainties. Many of those risks and uncertainties are matters
which are beyond SKYCITY’s control and could cause actual results to differ from those predicted.
Variations could either be materially positive or materially negative
◼This presentation has not taken into account any particular investors investment objectives or other
circumstances. Investors are encouraged to make an independent assessment of SKYCITY

SKYCITY
Entertainment
Group Limited
SKYCITY
Entertainment
Group Limited

---

-1-

SKYCITY Entertainment Group Limited
Income Statement
For the six month period ended 31 December 2018


Unaudited
6 months
31 December
Restated
Unaudited
6 months
31 December
Restated
Audited
12 months
30 June
2018 2017 2018

Notes $'000 $'000 $'000
Continuing operations
Gaming win plus non-gaming revenue 458,599 455,334 905,614
Gaming GST (48,815) (45,591) (91,786)
Total revenue 409,784 409,743 813,828
Other income 1,770 476 2,405
Share of losses from associates (201) (75) (347)

Employee benefits expense (146,497) (134,915) (278,246)
Other expenses 5 (46,266) (44,291) (86,373)
Directors fees (591) (692) (1,273)
Gaming taxes (19,457) (19,613) (38,422)
Direct consumables (31,101) (30,373) (62,061)
Marketing and communications (12,396) (11,845) (24,406)
Community contributions, levies and sponsorships (6,707) (6,801) (14,260)
Fair value adjustment to investment property - - (799)
Earnings Before Interest, Taxes, Depreciation and
Amortisation Expenses (EBITDA)
148,338 161,614 310,046
Depreciation and amortisation expense 5 (40,669) (40,277) (80,861)
Earnings Before Interest and Taxes (EBIT) 107,669 121,337 229,185
Net finance costs 7 (5,957) (6,260) (12,526)
Profit Before Income Tax 101,712 115,077 216,659
Income tax expense (32,888) (30,193) (57,827)
Profit from continuing operations 68,824 84,884 158,832

Profit from discontinued operations 14 14,000 8,576 10,687

Profit for the Period Attributable to Shareholders of the
Company

82,824 93,460 169,519
Earnings per share for Profit Attributable to
the Shareholders of the Company:
Cents Cents Cents
Attributable to continuing operations:
Basic and diluted earnings per share 10.2 12.6 23.7
Attributable to discontinuing operations:
Basic earnings per share (cents) 2.1 1.3 1.6
The above Income Statement should be read in conjunction with the accompanying notes.

-2-


SKYCITY Entertainment Group Limited
Statement of Comprehensive Income
For the six month period ended 31 December 2018



Unaudited
6 months
31 December
Unaudited
6 months
31 December
Audited
12 months
30 June
2018 2017 2018

Notes $'000 $'000 $'000
Profit for the period 82,824 93,460 169,519
Other Comprehensive Income

Items that may be Reclassified Subsequently to Profit or
Loss

Exchange differences on translation of overseas subsidiaries (9,988) 10,917 8,436
Cashflow Hedge Reserve
- Cash flow hedges - revaluations 5,068 (4,604) (18,241)
- Cash flow hedges - transfer to finance costs (4,470) 569 8,376
- Cash flow hedges - income tax (229) 1,179 2,855
Cost of Hedging Reserve
- Cost of hedging reserve - costs incurred 442 (2,828) (2,622)
- Cost of hedging reserve - transfer to finance costs (233) - (135)
- Cost of hedging reserve - income tax (58) 792 772
Other Comprehensive (Expense) / Income for the Period
Net of Tax

(9,468) 6,025 (559)
Total Comprehensive Income for the Period 73,356 99,485 168,960
The above Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

-3-

SKYCITY Entertainment Group Limited
Balance Sheet
As at 31 December 2018


Unaudited
31 December
Restated
Unaudited
31 December
Restated
Audited
30 June
2018 2017 2018

Notes $'000 $'000 $'000
ASSETS
Current Assets
Cash and bank balances 59,940 115,774 75,955
Receivables and prepayments 30,597 21,279 23,379
Inventories 7,695 8,584 7,570
Current tax receivables 1,682 5,149 4,799
Derivative financial instruments 1,913 9,448 -
Assets classified as held for sale 13 32,987 - 22,175
Assets of discontinued operations held for sale 14 210,789 - -
Total Current Assets 345,603 160,234 133,878
Non-Current Assets
Property, plant and equipment 1,447,542 1,467,947 1,498,610
Investment properties 43,400 - 35,300
Intangible assets 788,632 831,681 831,833
Investment in associate 2,089 2,562 2,290
Derivative financial instruments 48,768 38,245 42,597
Total Non-Current Assets 2,330,431 2,340,435 2,410,630
Total Assets 2,676,034 2,500,669 2,544,508
LIABILITIES
Current Liabilities
Payables 171,956 180,571 193,725
Current tax liabilities 4,348 2,088 7,376
Derivative financial instruments 25 1,844 534
Interest bearing liabilities 8 - 105,678 -
Liabilities of discontinued operations held for sale 14 18,272 - -
Total Current Liabilities 194,601 290,181 201,635
Non-Current Liabilities
Interest bearing liabilities 9 643,482 403,643 508,453
Provisions 2,007 3,166 3,288
Deferred tax liabilities 79,904 84,922 84,547
Derivative financial instruments 26,870 26,232 28,770
Deferred licence value 555,269 562,274 560,835
Total Non-Current Liabilities 1,307,532 1,080,237 1,185,893
Total Liabilities 1,502,133 1,370,418 1,387,528
Net Assets 1,173,901 1,130,251 1,156,980
EQUITY
Share capital 10 1,163,576 1,127,877 1,152,260
Reserves (73,397) (57,345) (63,929)
Retained earnings 83,722 59,719 68,649
Total Equity 1,173,901 1,130,251 1,156,980
The above Balance Sheet should be read in conjunction with the accompanying notes.

-4-

SKYCITY Entertainment Group Limited
Statement of Changes in Equity
For the six month period ended 31 December 2018



Share
Capital
Cashflow
Hedging
Reserve
Foreign
Currency
Translation
Reserve
Cost of
Hedging
Reserve
Retained
Earnings
Total
Equity

Notes $'000 $'000 $'000 $'000 $'000 $'000
Balance as at 1 July 2018 as
previously reported 1,152,260 (21,491) (40,453) (1,985) 69,695 1,158,026
Adjustment on adoption of IFRS15 - - - - (1,046) (1,046)
Restated balance at the beginning of
the half-year

1,152,260 (21,491) (40,453) (1,985) 68,649 1,156,980
Total comprehensive
income/(expense) - 369 (9,988) 151 82,824 73,356
Dividends provided for or paid 6 - - - - (67,751) (67,751)
Share rights issued for employee
service 10 2,475 - - - - 2,475
Share rights issued under Dividend
Reinvestment Plan 10 8,591 - - - - 8,591
Net issue of treasury shares 10 250 - - - - 250
Balance as at 31 December 2018

1,163,576 (21,122) (50,441) (1,834) 83,722 1,173,901
Balance as at 1 July 2017 as
previously reported 1,100,792 (14,481) (48,889) - 33,515 1,070,937
Adjustment on adoption of IFRS15 - - - - (1,046) (1,046)
Restated balance at the beginning of
the half-year

1,100,792 (14,481) (48,889) - 32,469 1,069,891
Total comprehensive
income/(expense) - (2,856) 10,917 (2,036) 93,460 99,485
Dividends provided for or paid 6 - - - - (66,210) (66,210)
Share rights issued for employee
service 10 1,489 - - - - 1,489
Share rights issued under Dividend
Reinvestment Plan 10 25,596 - - - - 25,596
Restated balance as at 31 December
2017

1,127,877 (17,337) (37,972) (2,036) 59,719 1,130,251
Balance as at 1 July 2017 as
previously reported 1,100,792 (14,481) (48,889) - 33,515 1,070,937
Adjustment on adoption of IFRS15 - - - - (1,046) (1,046)
Restated balance at the beginning of
the year

1,100,792 (14,481) (48,889) - 32,469 1,069,891
Total comprehensive
income/(expense) - (7,010) 8,436 (1,985) 169,519 168,960
Dividends provided for or paid 6 - - - - (133,339) (133,339)
Share rights issued under Dividend
Reinvestment Plan 10 48,257 - - - - 48,257
Share rights issued for employee
service 10 2,983 - - - - 2,983
Net issue of treasury shares 10 228 - - - - 228
Restated balance as at 30 June 2018

1,152,260 (21,491) (40,453) (1,985) 68,649 1,156,980
The above Statement of Changes in Equity should be read in conjunction with the accompanying notes.

-5-

SKYCITY Entertainment Group Limited
Statement of Cash Flows
For the six month period ended 31 December 2018


Unaudited
6 months
31 December
Restated
Unaudited
6 months
31 December
Restated
Audited
12 months
30 June
2018 2017 2018

Notes $'000 $'000 $'000
Cash flows from operating activities
Receipts from customers 462,255 468,147 919,852
Payments to suppliers and employees (278,667) (231,311) (508,830)


183,588 236,836 411,022
Gaming taxes paid (31,119) (30,731) (59,189)
Income taxes paid (32,707) (41,530) (62,744)
Net cash inflow from operating activities 16 119,762 164,575 289,089
Cash flows from investing activities
Purchase of property, plant and equipment (162,262) (146,438) (206,466)
Payment for investment in associate - (2,637) (2,637)
Payments for investment property (8,100) - (36,099)
Payments for intangible assets (11,316) (3,059) (8,589)
Net cash (outflow) from investing activities

(181,678) (152,134) (253,791)
Cash flows from financing activities
Cash flows associated with derivatives 697 (7,697) 9,736
New borrowings 133,000 110,000 206,956
Repayment of borrowings - - (112,459)
Net issue / (purchase) of treasury shares 250 - 228
Dividends paid to company shareholders (59,160) (40,614) (85,082)
Interest paid (19,405) (15,083) (35,449)
Net cash inflow / (outflow) from financing activities 55,382 46,606 (16,070)
Net Movement in cash and bank balances (6,534) 59,047 19,228
Cash and bank balances at the beginning of the period 75,955 56,727 56,727
Cash and bank balance classified as discontinued operations 14 (9,481) - -
Cash and cash equivalents at end of the period 59,940 115,774 75,955
The above Statement of Cash Flows should be read in conjunction with the accompanying notes.

SKYCITY Entertainment Group Limited
Notes to the Financial Statements
For the six month period ended 31 December 2018

-6-


1 GENERAL INFORMATION
SKYCITY Entertainment Group Limited (SKYCITY or the company and its subsidiaries or the Group) operates in the
gaming, entertainment, hotel, convention, hospitality and tourism sectors. The Group has operations in New Zealand and
Australia.
SKYCITY is a limited liability company incorporated and domiciled in New Zealand. The address of its registered office is
Federal House, 86 Federal Street, Auckland. The company is dual listed on the New Zealand and Australian stock
exchanges.
The interim financial statements of the Group have been prepared in accordance with the requirements of the Financial
Reporting Act 2013, the Companies Act 1993 and the New Zealand Stock Exchange (NZX). SKYCITY Entertainment
Group Limited is a company registered under the Companies Act 1993 and is an FMC Reporting Entity under part 7 of the
Financial Markets Conduct Act 2013.
These financial statements have been approved for issue by the Board of Directors on 12 February 2019.
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
These general purpose financial statements for the interim half-year reporting period ended 31 December 2018 have been
prepared in accordance with generally accepted accounting practice in New Zealand, International Accounting Standard 34
and NZ IAS 34 Interim Financial Reporting.
The preparation of interim financial statements in accordance with NZ IAS 34 Interim Financial Reporting requires
management to make judgements, estimates and assumptions that affect the application of policies and reported amounts
of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical
experience and various other factors that are believed to be reasonable under the circumstances, the results of which form
the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other
sources. Actual results may differ from these estimates.
The same significant judgements, estimates and assumptions included in the notes to the financial statements for the year
ended 30 June 2018 have been applied to these interim financial statements.
These financial statements have been prepared under the historical cost convention except for the revaluation of certain
financial instruments (including derivative instruments) and investment properties. The Group is designated as a
profit-oriented entity for financial reporting purposes.
Other than the adoption of NZ IFRS 15, the accounting policies that materially affect the measurement of the Income
Statement, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and the Statement of
Cash Flows have been applied on a basis consistent with those used in the audited financial statements for the year ended
30 June 2018 and the unaudited financial statements for the six months ended 31 December 2017.
These interim financial statements do not include all the notes of the type normally included in an annual financial report.
Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 June 2018.
In the current period the Darwin operations have been accounted for as a discontinued operation (note 14). As a result:
- The Income Statement has been adjusted (including prior periods) to disclose the results of the Darwin operations as a
single line. Revenue and expenses are separately disclosed in note 14
- Assets and liabilities of the Darwin operations in the 31 December 2018 Balance Sheet have been adjusted to a single
line in current assets and currently liabilities respectively. The prior period Balance Sheets have not been adjusted
- The Statement of Cash Flows includes the Darwin operations in all periods
- Income Statement and Balance Sheet notes are consistent with the relevant primary statement
(a) Changes in Accounting Policies
The following new standards impacting disclosures are mandatory for the first time for the financial period commencing 1
July 2018:
NZ IFRS 15, Revenue from Contracts with Customers

SKYCITY Entertainment Group Limited
Notes to the Financial Statements
For the six month period ended 31 December 2018
(continued)

-7-

NZ IFRS 15, 'Revenue from Contracts with Customers', deals with revenue recognition and establishes principles for
reporting useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue
and cash flows arising from an entity’s contracts with customers. Revenue is recognised when a customer obtains control
of a good or service and thus has the ability to direct the use and obtain the benefits from the good or service. Revenue is
recognised net of rebates to International Business customers. The standard replaced NZ IAS 18 'Revenue' and NZ IAS 11
'Construction contracts' and related interpretations.

The Group adopted NZ IFRS 15 from 1 July 2018. The Group used the full retrospective approach to applying the new
standard.

As part of the impact of adopting NZIFRS 15, the Group reassessed how certain arrangements with International Business
customers should be treated. As a result of adopting this new standard "Revenue" and "Other expenses" in the Income
Statement and "Receipts from customers" and "Payments to suppliers and employees" in the Cash Flow Statement are all
reduced by $44.7 million, $31.1 million and $68.6 million for periods ending 31 December 2018, 31 December 2017 and 30
June 2018 respectively. Also, liabilities for loyalty points increased by $1.0 million, with the adjustment being recognised in
the 1 July 2017 opening retained earnings and payables.
3 SEGMENT INFORMATION
Accounting policy
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision
maker. The chief operating decision maker has been identified as the Chief Executive Officer (CEO).
SKYCITY Darwin has been treated as a discontinued operation within the financial statements. For internal management
reporting purposes SKYCITY Darwin continues to be reported to the CEO on the same basis as previously and therefore
the segment information note has been prepared on a consistent basis with prior periods.
Consistent with internal management reporting, revenue from external customers within the segment note does not include
the impact of NZ IFRS 15.
Six Months Ended
31 December 2018
SKYCITY
Auckland
Rest of New
Zealand
SKYCITY
Adelaide
SKYCITY
Darwin
International
Business
Corporate /
Group Total
$'000 $'000 $'000 $'000 $'000 $'000 $'000
Revenue from external customers and
other income 279,298 33,845 77,320 60,789 65,819 - 517,071
Share of net profit / (losses) of associates - (201) - - - - (201)
Expenses (141,328) (20,597) (63,945) (44,127) (64,450) (16,663) (351,110)
Depreciation and amortisation (23,666) (2,818) (9,435) (4,804) - (4,751) (45,474)
Segment profit / (loss) (Earnings before
Interest and Tax) 114,304 10,229 3,940 11,858 1,369 (21,414) 120,286
Net finance costs (including discontinued
operations) (5,937)
Discontinued operations before tax (note
14) (12,637)
Profit before income tax from continuing
operations

101,712

Six Months Ended
31 December 2017
SKYCITY
Auckland
Rest of New
Zealand
SKYCITY
Adelaide
SKYCITY
Darwin
International
Business
Corporate /
Group Total
Revenue from external customers and
other income 263,150 32,845 78,832 63,331 66,466 - 504,624
Less - - - - - - -
Expenses (132,169) (19,440) (64,586) (45,047) (47,706) (15,099) (324,047)
Depreciation and amortisation (25,187) (2,681) (9,087) (6,847) - (3,321) (47,123)
Segment profit / (loss) (Earnings before
Interest and Tax) 105,794 10,724 5,159 11,437 18,760 (18,420) 133,454
Net finance costs (including discontinued
operations) (6,225)
Discontinued operations before tax (note
14) (12,152)
Profit before income tax from continuing
operations

115,077

SKYCITY Entertainment Group Limited
Notes to the Financial Statements
For the six month period ended 31 December 2018
(continued)

3 SEGMENT INFORMATION (continued)
-8-


Year Ended
30 June 2018
SKYCITY
Auckland
Rest of New
Zealand
SKYCITY
Adelaide
SKYCITY
Darwin
International
Business
Corporate /
Group Total
Revenue from external customers and
other income 531,028 65,348 149,396 112,398 139,017 - 997,187
Share of net profit / (losses) of associates - (347) - - - - (347)
Expenses (270,319) (36,315) (124,971) (85,020) (105,834) (35,653) (658,112)
Depreciation and amortisation (50,385) (5,401) (18,287) (13,515) - (6,789) (94,377)
Segment profit / (loss) (Earnings before
Interest and Tax) 210,324 23,285 6,138 13,863 33,183 (42,442) 244,351
Net finance costs (including discontinued
operations) (12,458)
Discontinued operations before tax (note
14) (15,234)
Profit before income tax from continuing
operations

216,659
4 REVENUE

6 months
31 December
Restated
6 months
31 December
Restated
12 months
30 June
2018 2017 2018

$'000 $'000 $'000
Gaming win plus non-gaming revenue 458,599 455,334 905,614
Gaming GST (48,815) (45,591) (91,786)
Total revenue 409,784 409,743 813,828
Gaming 306,555 309,249 611,880
Non-gaming 103,229 100,494 201,948
Total revenue 409,784 409,743 813,828

Gaming win represents the gross cash inflows associated with gaming activities. “Gaming win plus non gaming revenue”
does not represent revenue as defined by NZ IFRS 15 Revenue from Contracts with Customers”. The Group has decided
to disclose these amounts as they give shareholders and interested parties a better appreciation for the scope of the
Group’s gaming activities and is consistent with industry practice adopted by casino operations in Australia.

Revenue has been restated for the impact of NZ IFRS 15 and the sale of Darwin (note 14).

5 EXPENSES

6 months
31 December
Restated
6 months
31 December
Restated
12 months
30 June
2018 2017 2018

$'000 $'000 $'000
Utilities, insurance and rates 10,941 10,420 21,405
Property expenses 5,589 5,792 11,440
Other items 26,946 24,906 46,970
Lease payments relating to operating leases 2,194 2,336 4,870
Provision for bad and doubtful debts 596 837 1,688
Total other expenses 46,266 44,291 86,373

SKYCITY Entertainment Group Limited
Notes to the Financial Statements
For the six month period ended 31 December 2018
(continued)

5 EXPENSES (continued)
31 December 31 December 30 June
2018 2017 2018

$'000 $'000 $'000
-9-


Depreciation 34,548 34,298 68,913
Casino licence amortisation (Adelaide) 2,811 2,856 5,786
Computer software amortisation 3,310 3,123 6,162
Total depreciation and amortisation 40,669 40,277 80,861


Income tax expense 32,888 30,193 57,827

The 31 December 2018 income tax expense includes a A$3.5 million adjustment following a review completed by the
Australian Tax Office.
6 DIVIDENDS

6 months
31 December
6 months
31 December
12 months
30 June
2018 2017 2017

$'000 $'000 $'000
Prior year's final dividend 67,751 66,210 66,210
Interim dividend - - 67,129
Total dividends provided for or paid 67,751 66,210 133,339
Cents per share
Prior year's final dividend 10.0¢ 10.0¢ 10.0¢
Interim dividend - ¢ - ¢ 10.0¢
Subsequent to balance date the Board of Directors has resolved to pay an interim dividend of 10 cents per share.

7 NET FINANCE COSTS

6 months
31 December
6 months
31 December
12 months
30 June
2018 2017 2018

$'000 $'000 $'000
Interest and finance charges 20,528 17,260 35,915
Exchange (gains) / losses (67) 61 (136)
Interest income (245) (102) (354)
Capitalised interest (14,259) (10,959) (22,899)
Total net finance costs 5,957 6,260 12,526

SKYCITY Entertainment Group Limited
Notes to the Financial Statements
For the six month period ended 31 December 2018
(continued)

-10-

8 CURRENT LIABILITIES - INTEREST BEARING LIABILITIES

6 months
31 December
6 months
31 December
12 months
30 June
2018 2017 2018

$'000 $'000 $'000
United States Private Placement (USPP) notes - 105,678 -
Total current interest bearing borrowings - 105,678 -
Refer note 9 for details of the USPP notes.
9 NON-CURRENT LIABILITIES - INTEREST BEARING LIABILITIES

6 months
31 December
6 months
31 December
12 months
30 June
2018 2017 2018

$'000 $'000 $'000
USPP notes 388,271 162,032 386,658
Syndicated bank facility 133,000 120,000 -
NZ bond 125,000 125,000 125,000
Deferred funding expenses (2,789) (3,389) (3,205)
Total non-current interest bearing borrowings 643,482 403,643 508,453
(a) United States Private Placement Notes
The USPP fixed rate US dollar borrowings have been converted to New Zealand and Australian dollar floating rate
borrowings by using cross-currency interest rate swaps to eliminate foreign exchange exposure to the US dollar within the
Income Statement.
USPP notes mature between March 2020 and March 2028.
The movement in the amount of the USPP notes from 30 June 2018 relates to foreign exchange movements.
(b) Syndicated Bank Facility
The syndicated banking facility is provided by ANZ (New Zealand and Australia), Commonwealth Bank of Australia, Bank
of New Zealand, National Australia Bank and Westpac (New Zealand and Australia).
As at 31 December 2018, SKYCITY had in place revolving credit facilities of:
• NZ$200.0 million maturing 30 June 2020
• NZ$120.0 million maturing 15 March 2021
• A$280.0 million maturing 31 March 2022
(c) New Zealand Bond
$125 million of unsubordinated, unsecured, redeemable fixed rate bonds were issued on 28 September 2015 with a
maturity of seven years.

SKYCITY Entertainment Group Limited
Notes to the Financial Statements
For the six month period ended 31 December 2018
(continued)

-11-

10 SHARE CAPITAL
31 December 31 December 30 June 31 December 31 December 30 June
2018 2017 2018 2018 2017 2018

Shares Shares Shares $'000 $'000 $'000
Opening balance of ordinary shares
issued 680,342,108 667,376,523 667,376,523 1,152,260 1,100,792 1,100,792
Share rights issued for employee
services - - - 2,475 1,489 2,983
Net movement in treasury shares
value - - - 250 - 228
Shares issued under dividend
reinvestment plan 2,104,431 6,959,092 12,965,585 8,591 25,596 48,257
682,446,539 674,335,615 680,342,108 1,163,576 1,127,877 1,152,260

Included within the number of shares are treasury shares of 5,190,841 (31 December 2017: 5,515,841 and 30 June 2018:
5,515,841) held by the company. Treasury shares may be used to issue shares under the company's employee incentive
plan or upon the exercise of share rights.
11 CONTINGENCIES
(a) Contingent liabilities

The Group has no contingent liabilities at 31 December 2018.
(b) Contingent assets
Included within the Fletcher Construction Company Limited (FCC) construction contracts for the New Zealand International
Convention Centre and Horizon Hotel is the right to liquidated damages if certain milestones are not met. To date SKYCITY
has withheld $30.0 million from payments to FCC for liquidated damages. The amounts withheld have been recognised as
part of current liabilities as ultimate recovery is not able to be considered virtually certain due to the fact that SKYCITY’s
right to retain these liquidated damages is disputed by FCC.
There are no other significant contingencies at 31 December 2018 (2017: nil).
12 COMMITMENTS
(a) Capital Commitments
Capital expenditure contracted for at the reporting date but not recognised as liabilities is as follows:

31 December 31 December 30 June
2018 2017 2018

$'000 $'000 $'000
Property, plant and equipment 375,788 352,036 490,512

The majority of the capital commitments relate to the construction of the New Zealand International Convention Centre,
Horizon Hotel and the Adelaide Redevelopment.

SKYCITY Entertainment Group Limited
Notes to the Financial Statements
For the six month period ended 31 December 2018
(continued)

12 COMMITMENTS (continued)
-12-

(b) Operating Lease Commitments
31 December 31 December 30 June
2018 2017 2018

$'000 $'000 $'000

Commitments for minimum lease payments in relation to non-cancellable
operating leases are payable as follows:
Within one year 4,685 4,666 4,947
Later than one year but not later than five years 12,860 12,359 13,150
Later than five years 328,101 338,818 329,068
Total commitments for minimum lease payments 345,646 355,843 347,165
13 ASSETS CLASSIFIED AS HELD FOR SALE
31 December 31 December 30 June
2018 2017 2018

$'000 $'000 $'000
Land 18,617 - 9,850
Buildings 14,334 - 12,292
Plant and equipment 36 - 33
Total assets classified as held for sale 32,987 - 22,175
Assets held for sale consist of the Auckland Federal Street carpark ($22.2 million (31 December 2017: nil and 30 June
2018: $22.2 million)) and the Darwin Little Mindil site ($10.8 million (31 December 2017 and 30 June 2018: nil)).
14 DISCONTINUED OPERATIONS
(a) Sale of Darwin Operations
On 8 November 2018 SKYCITY announced the sale of the Darwin business to Delaware North. A sale and purchase
agreement for A$188 million has been signed subject to regulatory approval. Accordingly the Darwin business is reported
as a discontinued operation within the 2019 interim financial statements.
Financial information relating to the discontinued operation is set out below.
As a result of the classification of the Darwin operations as discontinued operations:
- Depreciation and amortisation of Darwin assets ceased from 8 November 2018
- Deferred tax liability relating to Darwin was reversed to reflect the future realisation of the underlying assets and liabilities
At 31 December 2018, there was a $27.4 million debit balance in the Foreign Currency Translation Reserve associated with
SKYCITY Darwin.

SKYCITY Entertainment Group Limited
Notes to the Financial Statements
For the six month period ended 31 December 2018
(continued)

14 DISCONTINUED OPERATIONS (continued)
-13-

(b) Financial performance

6 months
31 December
6 months
31 December
12 months
30 June
2018 2017 2018

$'000 $'000 $'000
Revenue 60,789 63,331 112,395
Expenses (48,152) (51,179) (97,161)
Profit before income tax 12,637 12,152 15,234
Income tax expense 1,363 (3,576) (4,547)
Profit after income tax of discontinued operations 14,000 8,576 10,687
(c) Carrying amounts of assets and liabilities
31 December
2018

$'000
Cash on hand 9,481
Receivables and prepayments 1,695
Inventories 979
Property, plant and equipment 163,238
Intangible assets 35,396
Total assets 210,789

Payables (14,832)
Current tax liabilities (3,440)
Total liabilities (18,272)
Net assets 192,517
15 EVENTS OCCURRING AFTER THE BALANCE SHEET DATE
(a) Dividend
On 12 February 2019, the Board of Directors resolved to provide for an interim dividend to be paid in respect of the six
months ended 31 December 2018. The unfranked, fully imputed dividend of 10 cents per share will be paid on 15 March
2019 to all shareholders on the company's register at the close of business on 1 March 2019.
(b) Announcement of share buy-back
On 12 February 2019, the Board of Directors resolved to undertake a share buy back programme to acquire up to 5% of
the ordinary shares in the company (as at 18 February 2018) on market, at market value, during the period from 18
February 2019 to 31 December 2019.

SKYCITY Entertainment Group Limited
Notes to the Financial Statements
For the six month period ended 31 December 2018
(continued)

-14-

16 RECONCILIATION OF PROFIT AFTER INCOME TAX TO NET CASH INFLOW FROM
OPERATING ACTIVITIES

6 months
31 December
6 months
31 December
12 months
30 June
2018 2017 2018

$'000 $'000 $'000

Profit for the period 82,824 93,460 169,519
Depreciation and amortisation (including discontinued operations) 45,474 47,123 94,377
Net finance costs (including discontinued operations) 5,937 6,225 12,458
Current period employee share entitlement 2,475 1,489 2,983
Fair value adjustment to investment property - - 799
Share of net loss of associate 201 75 347
Gain on sale of fixed assets (580) (644) (1,071)
Change in operating assets and liabilities
Change in receivables and prepayments (7,218) (3,916) (6,016)
Change in inventories (125) (1,547) (533)
Change in tax payable (3,028) (11,653) (6,365)
Change in payables and accruals (21,769) 42,955 56,109
Change in deferred tax liability (4,643) 4,901 4,526
Change in net tax receivable - current 3,117 (3,081) (2,731)
Change in provisions (1,281) 223 345
Working capital relating to discontinued operations 15,598 - -
Capital items included in working capital movements 2,780 (11,035) (35,658)
Net cash inflow from operating activities 119,762 164,575 289,089

}
purc
Independent
reuiew report
To
the shareholders of SKYCITY Entertainment
Group Limited
R ep r n" t r nt
t he in t e rint
fi.nctnc
i
al.s f
o f
ernen ls
We
have
reviewed
the accompanying interim financial
statements of SKYCITY
Entertainment
Group
Limited
(the
Company) and
its
subsidiaries
(the
Group) on
pages
1to 14,
which
comprise the
balance
sheet as at
81
December 2018,
and the income
statement, the statement of comprehensive income, the
statement
of changes in equity and
the statement of cash flows for the
period
ended on that date, and a
summary of significant accounting
policies
and selected explanatory notes.
l)ireclo r'
.s
rc.spo
n.s i6 i
lity
fu
r
t h t: itt t e
r
int
Jin
an c i u l .s f o ter n e n t.s
The Directors
are responsible onbehalfofthe
Group
forthe
preparation
andfair
presentation
ofthese
interim financial
statements in accordance with International
Accounting Standard
34
Interim
Financial Reporting
(IAS
a+)
and New Zealand Equivalent
to International
Accounting
Standard
34
Interim Financial
Reporting
(NZ
IAS
g+)
and
for
such internal control as the
Directors
determine is
necessary
to enable the
preparation
of
interim
financial statements that are free from material
misstatement, whether
due to
fraud
or error.
Our
responsibi/irr7
Our responsibility is
to express a conclusion
on the accompanying interim
financial
statements based
on our review. We
conducted our
review
in accordance with
the
New Zealand Standard on Review
Engagements
2410 Reuiew
of
Financial
Statements Performed
by the
Independent Auditor of the
EntiU
(NZ
SRE z4to).
NZ SRE
z4ro requires
us to conclude whether anything has come to our
attention
that causes us to
believe
that
the
interim financial
statements, taken as a
whole,
are
not
prepared
in
all material respects, in accordance with IAS
g+
and NZ
IAS
a+.
As the
auditors of the
Company,
NZ SRE
z4ro
requires that we comply with the
ethical
requirements relevant to
the
audit of
the annual financial
statements.
A review of interim
financial statements in accordance with
NZ SRE
z4ro is a limited
assurance
engagement. The
auditor
performs procedures, primarily
consisting of
making enquiries,
primarily
of
persons
responsible
for financial
and accounting matters, and applying analytical and other review
procedures.
The
procedures
performed
in
a
review
are substantially less than those
performed
in
an audit
conducted in accordance with International
Standards on Auditing
(New
Zealand)
and
International
Standards on Auditing. Accordingly, we
do
not
erpress an audit opinion on
these interim financial
statements.
We are independent
of the Group,
in
accordance
with
Professional and Ethical Standard r
(Revised)
Code of Ethics.for Assur
ance
Practitioners
(PES
t) issued by the New Zealand
Auditing
and Assurance
Standards Board
and the
International
Ethics Standards Board for Accountants' Code of Ethics
for
Professional
Accountants
(IESBA
Code),
and
we have
fulfilled our other
ethical responsibilities in
accordance with
these
requirements.
Our
firm
carries
out other services
for
the Group in the areas of tax compliance, tax advisory,
accounting assistance,
executive
remuneration
benchmarking, and
immigration advisory services.
The
provision
of
these other services has not impaired our independence.
PriceusqterhouseCoopers,
fiS
Quay
Street,
Priuate Bag
9zt6z,
Auckland u4z,
New Zea.lqnd
T:
+64
9
SSS
8ooo, F:
+64
9 359
Soot,
pwc.co.rv

I
purc
Conclusion
Based
on our review, nothing has
come to our attention
that causes us to believe that these interim
financial statements
of the Group do not
present
fairly,
in all material rrispects, the financial
position
of the Group as
at
31
December
zot8, and of its financial
performance
and cash flows for the
period
then ended, in accordance with IAS
34
and NZ IAS
34.
Who
ue
repot't
to
This
report is made
solely to the Company's
shareholders, as a body. Our
review work has
been
undertaken
so that
we
might state to the
Company's shareholders those matters which we are required
to state to
them
in
our review report
and
for no
other
pur?ose.
To the fullest extent
permitted
by law,
we
do
not
accept or assume responsibility
to anyone other than
the Company and the Company's
shareholders, as
a body,
for
our review
procedures,
for
this
report,
or
for the
conclusion
we have
formed.
For and
on behalfof:
Chartered
Accountants
rz Februaryzorg
AucHand
PwC16

---

APPENDIX 7 – NZSX Listing Rules
Number of pages including this one
(Please provide any other relevant
NZSX Listing Rule 7.12.2. For rights, NZSX Listing Rules 7.10.9 and 7.10.10. details on additional pages)
For change to allotment, NZSX Listing Rule 7.12.1, a separate advice is required.
Full name
of Issuer
Name of officer authorised to
Authority for event,
make this notice
e.g. Directors' resolution
Contact phone
Contact fax
numbernumber
Date
Nature of event
Bonus
If ticked,
Rights Issue
Tick as appropriate
Issue
state whether:Taxable
/ Non TaxableConversionInterestRenouncable
Rights IssueCapital
CallDividend
If ticked, stateFull
non-renouncable
change
x
whether:
Interim
x
YearSpecial
DRP Applies
EXISTING securities affected by this
If more than one security is affected by the event, use a separate form.
Description of theISIN
class of securities
If unknown, contact NZX
Details of securities issued pursuant to this eventIf more than one class of security is to be issued, use a separate form for each class.
Description of theISIN
class of securities
If unknown, contact NZX
Number of Securities toMinimum
Ratio, e.g
be issued following eventEntitlement
1 for 2 for
Conversion, Maturity, Call
Treatment of Fractions
Payable or Exercise Date
Tick if
provide an
pari passu
ORexplanation
Strike price per security for any issue in lieu or date
of the
Strike Price available.
ranking
Monies Associated with Event
Dividend payable, Call payable, Exercise price, Conversion price, Redemption price, Application money.
Source of
Amount per security
Payment
(does not include any excluded income)
Excluded income per security
(only applicable to listed PIEs)
Supplementary
Amount per security
Currencydividendin dollars and cents
details -
NZSX Listing Rule 7.12.7
Total monies
TaxationAmount per Security in Dollars and cents to six decimal places
In the case of a taxable bonusResident
Imputation Credits
issue state strike priceWithholding Tax(Give details)
Foreign
FWP Credits
Withholding Tax(Give details)
Timing
(Refer Appendix 8 in the NZSX Listing Rules)
Record Date 5pmApplication Date
For calculation of entitlements -Also, Call Payable, Dividend /
Interest Payable, Exercise Date,
Conversion Date. In the case
of applications this must be the
last business day of the week.
Notice DateAllotment Date
Entitlement letters, call notices,For the issue of new securities.
conversion notices mailedMust be within 5 business days
of application closing date.
OFFICE USE ONLY
Ex Date:
Commence Quoting Rights:Security Code:
Cease Quoting Rights 5pm:
Commence Quoting New Securities:Security Code:
Cease Quoting Old Security 5pm:
EMAIL: announce@nzx.com
Notice of event affecting securities
1
SKYCITY Entertainment Group Limited
Jo Wong
Directors' resolution
(09) 363 6000(09)363 6140
1322019
NZSKCE0001S2
In dollars and cents
Profit
$0.1000
Ordinary Shares
Enter N/A if not
applicable
NZ Dollars$0.017647
$67,725,570
Date Payable
15 March, 2019
$
$0.006944$0.038889
$
1 March, 201915 March, 2019

---

MARKET RELEASE

13 February 2019


SKYCITY TO UNDERTAKE ON-MARKET SHARE BUY BACK

SKYCITY advises that it intends to undertake an on-market share buy back programme
to purchase up to 5% of its total ordinary shares on issue.
Under the share buy back programme SKYCITY will acquire shares only on the NZX
Main Board. Shares may be acquired from 18 February 2019 until 31 December 2019
and all shares acquired will be cancelled.
SKYCITY Chairman Rob Campbell said that while the Board wishes to maintain capital
flexibility for future growth investment opportunities, it considers that returning some
capital to shareholders from announced and pending asset sales is a prudent allocation
of capital. Furthermore, the Board considers that buying the company’s shares at
current prices is an efficient use of surplus funding capacity and will be value-enhancing
for shareholders.
The SKYCITY Board has approved an initial share buy back of up to $50 million and will
consider the potential for increasing that amount following the completion of the
proposed sale of the Auckland car park concession. SKYCITY is close to selecting a
preferred bidder to acquire the Auckland car park concession and expects to announce
further details on the proposed sale within the next month. Until that time, SKYCITY
will not be acquiring any shares on-market as the outcome of the sale process is
considered to be material information.
SKYCITY has consulted Standard & Poor’s regarding the share buy back and remains
committed to retaining its BBB- credit rating.
FNZC has been appointed to act as SKYCITY’s broker for the share buy back



For more information, contact:




Ben Kay
GM, Corporate Development & Investor Relations
DDI: +64 9 363 6067
Email: ben.kay@skycity.co.nz