UPDATED GUIDANCE ON FY20 RESULTS AND ADELAIDE IMPAIRMENT

20 August 2020


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


RE: SKYCITY ENTERTAINMENT GROUP LIMITED (SKC)
UPDATED GUIDANCE ON FY20 RESULTS AND ADELAIDE IMPAIRMENT


Please find attached an announcement regarding the company’s financial results for the
financial year ended 30 June 2020, which will be released on 3 September 2020.


Authorised by:


Jo Wong
Company Secretary
Phone: +64 9 363 6143
Email: jo.wong@skycity.co.nz

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MARKET RELEASE
SkyCity Entertainment Group Limited
(SKC.NZX/SKC.AX)
20 August 2020
Updated Guidance on FY20 Results and Adelaide Impairment
SkyCity Entertainment Group Limited (“SkyCity”) advises that it expects its reported
earnings results for the financial year ended 30 June 2020 will be outside the previous
guidance ranges (released on 17 June 2020 as part of the company’s Equity Raising Investor
Presentation).
SkyCity’s normalised earnings results for FY20 are expected to remain within, and be at the
upper end of, the previous guidance ranges.
Reported earnings will be higher than previous guidance as a result of higher estimates for
the insurance proceeds for the damage to and reinstatement costs for the New Zealand
International Convention Centre and Horizon Hotel arising from the fire. Offsetting this
increase in reported earnings, and as previously advised, SkyCity proposes to recognise an
impairment of Adelaide Casino’s book value of A$150 million (NZ$161 million).
Updated Earnings Guidance
SkyCity’s previous and updated earnings guidance is summarised in the following table.
SkyCity’s earnings estimates for FY20 remain subject to further review by its Board and
auditor.
SkyCity will release its full FY20 financial results on 3 September 2020.
FY20 Results ($m) Previous Guidance Updated Guidance
Reported EBITDA 440-480
(1)
346-349
(2)

Reported NPAT 330-360
(1)
234-236
(2)

Normalised EBITDA
(3)
185-205 199-202
Normalised NPAT
(3)
52-67 65-67
(1) Before any potential impairment of Adelaide Casino’s book value.
(2) Includes the proposed impairment of Adelaide Casino’s casino licence value.
(3) For an explanation on SkyCity’s approach to non-GAAP adjustments, refer to SkyCity’s result presentations at
https://www.skycityentertainmentgroup.com/investor-centre/financial-information/reports-presentations/
.

Impairment of Adelaide Casino Book Value
SkyCity previously advised that it expected to make a partial impairment of Adelaide
Casino’s book value (as part of the company’s Equity Raising Investor Presentation released
on 17 June 2020), and that this would be a non-cash charge (estimated as at 30 June 2020)
which would reduce Adelaide Casino’s intangible asset value (casino licence). Consistent
with its Non-GAAP Financial Information Policy, SkyCity will adjust for (ie. exclude) the
impairment when presenting its normalised results for FY20.
SkyCity has now completed its annual impairment review and proposes to recognise in its
FY20 financial statements an impairment of Adelaide Casino’s book value of A$150 million
(NZ$161 million). This impairment will be made against the A$283 million intangible asset
value of Adelaide Casino’s casino licence.
The proposed impairment has arisen due to revised expectations regarding the time frame
for Adelaide Casino to achieve its long-term potential earnings following completion of the
expansion project. The reduced earnings outlook for Adelaide Casino has been
exacerbated in the short-to-medium term by the recent and expected ongoing impacts of
COVID-19, including an expectation that International Business activity may take some
years to recover.
The proposal to impair Adelaide Casino’s book value remains subject to further review by
SkyCity’s Board and auditor.

ENDS

For more information, please contact:
Investors and analysts
Media
Ben Kay
General Manager, Corporate
Development & Investor Relations
DDI: +64 9 363 6067
E-mail: ben.kay@skycity.co.nz

Kate Gourdie
External Communications Manager
Mobile +64 21 197 2845
E-mail: kate.gourdie@skycity.co.nz