INTERIM RESULT FOR THE SIX MONTHS ENDED 31 DECEMBER 2020

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SkyCity Entertainment Group Limited
Interim Financial Statements
for the six month period ended 31
December 2020



















For and on behalf of the Board:










Rob Campbell Bruce Carter
Chairman Chairman of the Audit and Risk Committee


17 February 2021

PricewaterhouseCoopers, 15 Customs Street West, Private Bag 92162, Auckland 1142, New Zealand
T: +64 (9) 355 8000, F: +64 (9) 355 8001, www.pwc.com/nz
Independent auditor’s review report
To the shareholders of SkyCity Entertainment Group Limited
Report on the interim financial statements
Our conclusion
We have reviewed the interim financial statements of SkyCity Entertainment Group Limited (the
Company) and its subsidiaries (the Group), which comprise the balance sheet as at 31 December 2020,
the income statement, the statement of comprehensive income, the statement of changes in equity and
the statement of cash flows for the six month period ended on that date, and significant accounting
policies and other explanatory information.
Based on our review, nothing has come to our attention that causes us to believe that the
accompanying interim financial statements of the Group do not present fairly, in all material respects,
the financial position of the Group as at 31 December 2020, and its financial performance and cash
flows for the six month period then ended, in accordance with International Accounting Standard 34
Interim Financial Reporting (IAS 34) and New Zealand Equivalent to International Accounting
Standard 34 Interim Financial Reporting (NZ IAS 34).
Basis for conclusion
We conducted our review in accordance with the New Zealand Standard on Review Engagements 2410
(Revised) Review of Financial Statements Performed by the Independent Auditor of the Entity (NZ
SRE 2410 (Revised)). Our responsibilities are further described in the Auditor’s responsibilities for the
review of the financial statements section of our report.
We are independent of the Group in accordance with the relevant ethical requirements in New Zealand
relating to the audit of the annual financial statements, and we have fulfilled our other ethical
responsibilities in accordance with these ethical requirements. In addition to our role as auditor, our
firm carries out other services for the Group in the areas of tax compliance, tax advisory, the licensing
of a software tool for subsidiary statutory financial statement preparation, and other assurance and
agreed-upon-procedure services in relation to: compliance with banking and US private placement
covenants; the allocation of Community Trust revenue; application for the Australian COVID-19
JobKeeper scheme; and the reconciliation of normalised results to reported results. The provision of
these other services has not impaired our independence.
Emphasis of matter – impact of the NZICC fire
We draw attention to Note 6 in the interim financial statements, which describes the impact of the fire
on 22 October 2019 at the New Zealand International Convention Centre (NZICC), and the adjacent
Horizon Hotel, and the related significant judgements and estimates.
The fire caused extensive damage and material income, expense and asset balances related to the fire
are included in the interim financial statements. These amounts are based on estimates, including the
extent of damage to the structural steel and facade which is still being assessed. There is, therefore,
material uncertainty inherent in the balances recorded and the amounts recognised in the income
statement. Consequently, the actual financial impacts may differ from the estimates included in these
interim financial statements, and those differences may be material. Our conclusion is not modified in
respect of this matter.

PwC
Directors’ responsibility for the financial statements
The Directors of the Group are responsible on behalf of the Company for the preparation and fair
presentation of these interim financial statements in accordance with IAS 34 and NZ IAS 34 and for
such internal control as the Directors determine is necessary to enable the preparation and fair
presentation of interim financial statements that are free from material misstatement, whether due to
fraud or error.
Auditor’s responsibility for the review of the financial statements
Our responsibility is to express a conclusion on the interim financial statements based on our review.
NZ SRE 2410 (Revised) 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 34 and NZ IAS 34. A review of interim financial statements
in accordance with NZ SRE 2410 (Revised) is a limited assurance engagement. We perform
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 and International Standards on
Auditing (New Zealand) and consequently does not enable us to obtain assurance that we might
identify in an audit. Accordingly, we do not express an audit opinion on these interim financial
statements.
Who we report 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 purpose. To the fullest extent permitted by law,
we do not accept or assume responsibility to anyone other than the shareholders, as a body, for our
review procedures, for this report, or for the conclusion we have formed.
The engagement partner on the review resulting in this independent auditor’s review report is Richard
Day.
For and on behalf of:
Chartered Accountants Auckland
17 February 2021

-1-

SkyCity Entertainment Group Limited
Income Statement
For the six month period ended 31 December 2020


Unaudited
6 months
31 December
Unaudited
6 months
31 December
Audited
12 months
30 June
2020 2019 2020

Notes $'000 $'000 $'000
Continuing operations
Revenue 4 315,710 412,532 641,653
Other income 5 67,457 68,675 98,924
NZICC fire related income 6.a 66,770 240,592 384,500
NZICC fire related costs 6.b (66,664) (47,535) (108,090)
Share of losses from associates - (83) (83)
Employee benefits expense (131,285) (146,113) (284,867)
Impairment of Adelaide casino licence - - (160,600)
Other expenses 7 (52,754) (48,303) (97,134)
Directors' fees (488) (553) (900)
Gaming taxes (15,851) (20,082) (30,254)
Direct consumables (16,829) (35,762) (54,376)
Marketing and communications (7,124) (9,814) (16,045)
Community contributions, levies and sponsorships (6,356) (6,081) (10,382)
Fair value adjustment on investment property - - (14,055)
Earnings Before Interest, Taxes, Depreciation and Amortisation
Expenses (EBITDA)
152,586 407,473 348,291
Depreciation and amortisation expense
7
(41,797) (40,910) (85,446)
Depreciation on right-of-use assets

(574) (551) (1,114)
Earnings Before Interest and Tax (EBIT) 110,215 366,012 261,731
Net finance costs 9 (14,042) (6,377) (28,613)

Profit Before Income Tax 96,173 359,635 233,118
Income tax (expense)/benefit 12 (17,757) (31,879) 2,152
Profit from continuing operations 78,416 327,756 235,270
Profit from discontinued operations - 229 118
Profit for the Period Attributable to Shareholders of the
Company

78,416 327,985 235,388
Earnings per share for Profit Attributable to the
Shareholders of the Company:

Basic and diluted earnings per share 10.4 49.3 35.4
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 2020



Unaudited
6 months
31 December
Unaudited
6 months
31 December
Audited
12 months
30 June
2020 2019 2020

Notes $'000 $'000 $'000
Profit for the period 78,416 327,985 235,388
Other comprehensive income:
Items that will not be reclassified to profit or loss:
Asset Revaluation Reserve
Asset revaluation reserve - revaluation on transfer to investment
property
20 - 5,936 5,936
- 5,936 5,936
Items that may be Reclassified Subsequently to Profit or
Loss

Exchange differences on translation of overseas subsidiaries 20 (1,072) (1,550) 6,285
Cashflow Hedge Reserve
- Cash flow hedges - revaluations 20 (36,855) (1,280) 9,154
- Cash flow hedges - transfer to finance costs 20 41,296 7,224 (5,143)
- Cash flow hedges - income tax 20 (1,257) (1,690) (1,239)
Cost of Hedging Reserve
- Cost of hedging reserve - revaluations 20 (251) (269) (113)
- Cost of hedging reserve - transfer to finance costs 20 462 462 462
- Cost of hedging reserve - income tax 20 (59) (54) (98)
2,264 2,843 9,308
Other comprehensive income for the year, net of tax 2,264 8,779 15,244
Total comprehensive income for the year 80,680 336,764 250,632
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 2020


Unaudited
31 December

Unaudited
31 December
Audited
30 June
2020 2019 2020

Notes $'000 $'000 $'000
ASSETS
Current Assets
Cash and bank balances 58,077 52,835 54,224
Receivables and prepayments 14 46,527 49,360 42,252
Derivative financial instruments 33,901 107 53,288
Inventories 7,983 7,950 6,628
Current tax receivables 5,734 - 1,989
NZICC fire recoveries 6,c 127,395 141,664 49,571
Assets classified as held for sale 23 13,535 10,701 11,019
Total Current Assets 293,152 262,617 218,971
Non-current Assets
Property, plant and equipment 13 1,441,257 1,531,504 1,528,902
Intangible assets 645,792 802,873 649,531
Finance lease receivable 11,094 10,222 10,574
Derivative financial instruments 2,250 54,631 23,100
Investment properties 16 74,557 58,667 72,400
Deferred tax assets 5,621 1,816 6,877
Right-of-use assets 53,165 51,262 51,967
NZICC fire recoveries 6,d 207,000 77,000 227,000
Total Non-current Assets 2,440,736 2,587,975 2,570,351
Total Assets 2,733,888 2,850,592 2,789,322
LIABILITIES
Current Liabilities
Payables and provisions 15 178,725 211,716 221,842
Interest bearing liabilities 11 138,370 54,259 302,509
Current tax liabilities 2,632 4,871 776
Derivative financial instruments 3,562 3,136 6,113
Lease liabilities 504 470 485
Deferred licence value 17 5,041 148,754 153,165
Total Current Liabilities 328,834 423,206 684,890
Non-Current Liabilities
Interest bearing liabilities 10 441,427 536,317 282,731
Non-current payables 12,141 1,416 10,569
Lease income in advance 39,815 39,815 39,815
Derivative financial instruments 20,789 22,770 24,375
Deferred tax liabilities 50,340 71,678 45,175
Lease liabilities 53,727 51,147 52,188
Deferred licence value 18 219,996 295,352 214,972
Total Non-current Liabilities 838,235 1,018,495 669,825
Total Liabilities 1,167,069 1,441,701 1,354,715
Net Assets 1,566,819 1,408,891 1,434,607
EQUITY
Share capital 19 1,339,819 1,110,018 1,288,287
Reserves 20 (31,057) (39,786) (33,321)
Retained earnings 258,057 338,659 179,641
Total Equity 1,566,819 1,408,891 1,434,607
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 2020



Share
Capital Reserves
Retained
earnings
Total
Equity

Notes $'000 $'000 $'000 $'000
Balance as at 1 July 2020 1,288,287 (33,321) 179,641 1,434,607
Total comprehensive income - 2,264 78,416 80,680
Equity raising 19 48,737 - - 48,737
Share rights issued for employee service 19 2,795 - - 2,795
Balance as at 31 December 2020

1,339,819 (31,057) 258,057 1,566,819
Balance as at 1 July 2019 1,126,996 (48,565) 77,541 1,155,972
Total comprehensive income - 8,779 327,985 336,764
Dividends provided for or paid 8 - - (66,867) (66,867)
Share rights issued for employee service 19 2,791 - - 2,791
Net movement in treasury shares 19 234 - - 234
Buy back and cancellation of shares 19 (20,003) - - (20,003)
Balance as at 31 December 2019

1,110,018 (39,786) 338,659 1,408,891
Balance as at 1 July 2019 1,126,996 (48,565) 77,541 1,155,972
Total comprehensive income - 15,244 235,388 250,632
Dividends provided for or paid 8 - - (133,288) (133,288)
Equity raising 177,160 - - 177,160
Share rights issued for employee service 19 3,698 - - 3,698
Net movement in treasury shares 19 436 - - 436
Buy back and cancellation of shares 19 (20,003) - - (20,003)
Balance as at 30 June 2020

1,288,287 (33,321) 179,641 1,434,607
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 2020


Unaudited
6 months
31 December

Unaudited
6 months
31 December
Audited
12 months
30 June
2020 2019 2020

Notes $'000 $'000 $'000
Cash Flows from Operating Activities
Receipts from customers 313,940 423,200 655,470
Payments to suppliers and employees (184,955) (262,832) (480,613)
Government grants 25,709 - 27,354


154,694 160,368 202,211
Gaming taxes and levies paid (19,530) (25,937) (40,988)
Income taxes paid (14,548) (37,946) (41,057)
Net Cash Inflow from Operating Activities 24 120,616 96,485 120,166
Cash Flows from Investing Activities
Purchase of property, plant and equipment (111,340) (187,943) (324,625)
Auckland car park concession disposal - 128,981 128,946
Payments for investment property (283) (1,587) (2,252)
Payments for intangible assets (7,174) (12,624) (20,515)
Lease income received in advance - 39,815 39,815
NZICC fire related income 533 20,000 106,000
NZICC fire related costs (59,045) (11,384) (26,638)
Net Cash Outflow from Investing Activities

(177,309) (24,742) (99,269)
Cash Flows from Financing Activities
Issue of new share capital 48,737 - 177,160
Cash flows associated with derivatives 1,979 43 (2,327)
New borrowings 175,141 47,814 45,814
Repayment of borrowings (143,500) - (34,127)
Buy back of shares - (19,993) (19,566)
Net issue of treasury shares - 234 -
Repayment of lease liabilities - (228) (469)
Dividends paid to company shareholders - (66,867) (133,288)
Interest paid (21,811) (21,485) (41,444)
Net Cash Inflow/(Outflow) from Financing Activities 60,546 (60,482) (8,247)
Net Increase in Cash and Bank Balances 3,853 11,261 12,650
Cash and bank balances at the beginning of the period 54,224 41,574 41,574
Cash and Bank Balances at the End of the Period 58,077 52,835 54,224
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 2020

-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 99
Albert 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 17 February 2021.
2 Summary of Significant Accounting Policies
These general purpose financial statements for the interim half-year reporting period ended 31 December 2020 have been
prepared in accordance with generally accepted accounting practice in New Zealand, International Accounting Standard 34
and New Zealand equivalent to International Accounting Standard 34 Interim Financial Reporting (NZ IAS 34). For the
purposes of complying with GAAP the Group is classed as a for-profit entity (FRS 44(7)).
The Group also uses non-GAAP financial information which is not prepared in accordance with New Zealand International
Financial Reporting Standards (NZ IFRS) when discussing financial performance. The Directors and management believe
that this non-GAAP financial information provides useful information to readers of the financial statements to assist in the
understanding of the Group’s financial performance and is consistent with the information used internally to evaluate the
performance of business units.
Definitions of non-GAAP financial information used in these financial statements are:
• EBITDA: Earnings before interest, tax, depreciation and amortisation; and
• EBIT: Earnings before interest and tax
The preparation of interim financial statements in accordance with NZ IAS 34 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 2020 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 has a negative working capital balance which includes $138 million (US$100 million) of US private placement
debt that matures in March 2021 (refer note 11). The Group has significant available undrawn committed banking facilities
totalling $453 million as at 31 December 2020 (refer to note 10) and has the ability to fully pay all debts as they fall due.
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 2020 and the unaudited financial
statements for the six months ended 31 December 2019.
These interim financial statements do not include all the notes normally included in the annual financial statements.
Accordingly, these interim financial statements should be read in conjunction with the annual report for the year ended 30
June 2020.

SkyCity Entertainment Group Limited
Notes to the Financial Statements
For the six month period ended 31 December 2020
(continued)

2 Summary of Significant Accounting Policies (continued)
-7-

(a) Significant Transactions Impacting the Period

Adelaide Redevelopment
The Adelaide casino expansion and hotel development was substantially completed and opened to the public in December
2020. A small portion of development remains to be completed during the second half of the financial year. As a result of
the completion of the development, the majority of the Adelaide deferred licence value was transferred from current
liabilities to property, plant and equipment (refer to note 17).
New Zealand International Convention Centre Fire
On 22 October 2019, there was a significant fire at the construction site of the New Zealand International Convention
Centre (NZICC) in Auckland. This fire has caused extensive damage to the NZICC and damage to Horizon Hotel which is
being constructed on the adjacent site. To date, it has not been possible to complete a full assessment of the extent of
damage caused by the fire. The Group has engaged an independent expert to estimate the likely extent of damage.
The following table summarises the impact of the NZICC fire
Item NZICC Impact Note
NZICC fire related income Estimated insurance proceeds to cover the full reinstatement to the
pre-fire condition have been recognised as income.

Insurance proceeds for other costs incurred (business interruption
costs, site preparation, demolition costs and other ongoing costs as a
result of the fire) are recognised as income when the costs are
incurred.
6
NZICC fire related expenses Damaged/destroyed components have been recognised as an
expense, partially offset by a transfer from the deferred licence value.

Other costs as a result of the fire are expensed as incurred.
6
Cost Capitalisation Capitalisation of borrowing costs and some internal costs associated
with the NZICC and Horizon Hotel has been suspended.

Property, Plant and Equipment Damaged/destroyed components of both buildings have been
derecognised.
13
Deferred Licence Value Partial release of the deferred licence value for the NZICC based on
the percentage of the building damaged.
18
Insurance Proceeds Estimated insurance proceeds to cover the full reinstatement to the
pre-fire condition have been recognised as a receivable on the
Balance Sheet.

Insurance proceeds to cover the cost of site clean-up and preparation
have been recognised as the underlying costs are incurred.
6
Liquidated Damages Recognised as income of liquidated damages for the closure of the
Nelson Street car park access tunnel.
6
NZICC Long Stop Date The Crown has agreed to an extension of the Completion Long Stop
date included in the New Zealand International Convention Centre
Project and Licensing Agreement.

The revised date is now 2 January 2025 (previously 1 January 2023).

SkyCity expects to complete the NZICC before this date.

SkyCity Entertainment Group Limited
Notes to the Financial Statements
For the six month period ended 31 December 2020
(continued)

2 Summary of Significant Accounting Policies (continued)
-8-


COVID-19
On 11 March 2020 the World Health Organization declared a global pandemic as a result of the outbreak and spread of
COVID-19. As a result of the pandemic, SkyCity has faced a number of closures and other restrictions during calendar
2020.
During the current financial period, the Auckland site was closed from 12 August 2020 to 30 August 2020 and operated
under New Zealand Alert Level 2/2.5 from 30 August 2020 to 8 October 2020. The Adelaide site was closed for 3 days
commencing 18 November 2020 and has operated under government social distancing restrictions almost the entire
financial period.
A comprehensive summary of SkyCity's COVID-19 response, including an equity raising, debt restructure and staff
restructure, was included in the 30 June 2020 financial statements.
In the current period, the Group has continued to receive both the New Zealand wage subsidy and the Australian
JobKeeper payment. The 30 June 2020 financial statements noted material valuation uncertainty in determining the fair
value of the Group's investment properties given the potentially material and unknown impact of COVID-19. In the current
period, the valuer notes continuing but no longer "material" uncertainty.
SkyCity remains well positioned to manage ongoing future risks associated with COVID-19.
(b) Changes in Accounting Policies
There have been no significant changes in accounting policies during the current period.

SkyCity Entertainment Group Limited
Notes to the Financial Statements
For the six month period ended 31 December 2020
(continued)

-9-

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).
Other operations include the Group's operations at SkyCity Hamilton, SkyCity Queenstown, SkyCity Wharf, Lets Play Live
Media, Online Gaming and Associates.
Corporate/Group includes head office functions and funding entities and is not considered an operating segment.
Six Months Ended
31 December 2020
SkyCity
Auckland
Other
Operations
SkyCity
Adelaide
International
Business *
Corporate /
Group Total
$'000 $'000 $'000 $'000 $'000 $'000
Gaming revenue 159,950 31,965 62,494 3,336 - 257,745
Online gaming - 7,526 - - - 7,526
Non-gaming revenue 37,987 5,168 10,668 - - 53,823
Other Income 9,072 1,371 16,575 - 939 27,957
NZICC fire income 66,770 - - - - 66,770
Liquidated damages 39,500 - - - - 39,500
Total revenue 313,279 46,030 89,737 3,336 939 453,321
Expenses (116,478) (20,625) (66,150) (9,757) (21,061) (234,071)
NZICC fire expenses (66,664) - - - - (66,664)
Depreciation and amortisation (22,957) (2,961) (7,715) - (8,738) (42,371)
Segment profit/(loss) (EBIT) 107,180 22,444 15,872 (6,421) (28,860) 110,215
Net finance costs (14,042)
Profit before income tax from continuing operations

96,173

Six Months Ended
31 December 2019
SkyCity
Auckland
Other
Operations
SkyCity
Adelaide
International
Business *
Corporate /
Group Total

$'000 $'000 $'000 $'000 $'000 $'000
Gaming revenue 195,683 31,011 63,440 57,680 - 347,814
Online gaming - 187 - - - 187
Non-gaming revenue 78,711 5,719 12,063 7 - 96,500
Other Income 2,126 83 - - - 2,209
NZICC fire income 240,592 - - - - 240,592
Sale of Auckland car park concession 66,466 - - - - 66,466
Total revenue 583,578 37,000 75,503 57,687 - 753,768
Shares of net profits/(losses) of associates - (83) - - - (83)
Expenses (146,545) (21,631) (62,019) (49,546) (18,936) (298,677)
NZICC fire expenses (47,535) - - - - (47,535)
Depreciation and amortisation (23,027) (3,096) (8,413) - (6,925) (41,461)
Segment profit/(loss) (EBIT) 366,471 12,190 5,071 8,141 (25,861) 366,012
Net finance costs (including discontinued operations) (6,377)
Profit before income tax from continuing operations 359,635

SkyCity Entertainment Group Limited
Notes to the Financial Statements
For the six month period ended 31 December 2020
(continued)

3 Segment Information (continued)
-10-


Year Ended
30 June 2020
SkyCity
Auckland
Other
Operations
SkyCity
Adelaide
International
Business *
Corporate /
Group Total

$'000 $'000 $'000 $'000 $'000 $'000
Gaming revenue 312,282 51,554 90,996 75,948 - 530,780
Online revenue - 4,521 - - - 4,521
Non-gaming revenue 118,094 8,738 18,823 - - 145,655
Other income 20,586 2,428 8,327 8 1,144 32,493
NZICC fire income 384,500 - - - - 384,500
Sale of Auckland car park concession 66,431 - - - - 66,431
Total revenue 901,893 67,241 118,146 75,956 1,144 1,164,380
Shares of net profits/(losses) of associates - (83) - - - (83)
Expenses (292,198) (41,625) (107,126) (72,184) (34,183) (547,316)
Adelaide casino licence impairment - - (160,600) - - (160,600)
NZICC fire expenses (108,090) - - - - (108,090)
Depreciation and amortisation (46,073) (6,159) (19,090) - (15,238) (86,560)
Segment profit/(loss) (EBIT) 455,532 19,374 (168,670) 3,772 (48,277) 261,731
Net finance costs (including discontinued operations) (28,613)
Profit before income tax from continuing operations 233,118

* International Business gaming revenue includes rebates and complimentary play.
4 Revenue

6 months
31 December
6 months
31 December
12 months
30 June
2020 2019 2020

$'000 $'000 $'000
Gaming 254,361 315,845 491,477
Non-gaming 53,823 96,500 145,655
Online gaming 7,526 187 4,521
Total revenue 315,710 412,532 641,653

Gaming revenues represent the net win to the casino from gaming activities, being the difference between amounts
wagered and amounts won by casino patrons. International Business rebates are treated as a reduction in revenue.
Non gaming revenues include hotel and conventions, food and beverage, Sky Tower, car parking and other revenues.
These are recognised when the goods are provided, or services are rendered.


6 months
31 December
6 months
31 December
12 months
30 June
2020 2019 2020

Notes $'000 $'000 $'000
Reconciliation to the segment note
Total revenue 4 315,710 412,532 641,653
Other income 5 1,142 2,209 3,310
Government grants 5 26,815 - 29,183
International Business rebates 3,384 31,969 39,303
Gain on sale of Auckland car park concession - 66,466 66,431
NZICC fire income 6 66,770 240,592 384,500
Liquidated damages 5 39,500 - -
Total revenue as per segment note 453,321 753,768 1,164,380

SkyCity Entertainment Group Limited
Notes to the Financial Statements
For the six month period ended 31 December 2020
(continued)

-11-

5 Other income

6 months
31 December
6 months
31 December
12 months
30 June
2020 2019 2020

$'000 $'000 $'000
Net gain on disposal of property, plant and equipment 67 397 348
Net gain on sale of carparks under the Auckland Car Park
Concession - 66,466 66,431
Government grants 26,815 - 29,183
Dividend income 2 9 9
Rental income from investment properties 1,073 1,803 2,953
Liquidated Damages 39,500 - -


67,457 68,675 98,924
Government Grants
New Zealand
As part of its COVID-19 response, the New Zealand Government introduced a wage subsidy covering an initial 12-week
period from application for companies with a greater than 30% reduction in revenue as a result of COVID-19.
The New Zealand Government extended the wage subsidy for a further 8 weeks after the initial 12 weeks for companies
with a greater than 40% reduction in revenue in the 30 days preceding the second application. In July 2020, SkyCity made
an application for the extended wage subsidy.
In the current financial period, SkyCity has recognised $10.2 million (30 June 2020: $20.9 million) from the New Zealand
wage subsidy.
Adelaide
The Australian Government introduced the JobKeeper Payment plan which is effective until 31 March 2021. Under this
plan, eligible companies receive A$1,500 per fortnight per eligible employee provided the company has paid its employee
at least this amount. SkyCity was eligible for this payment to 3 January 2021. In the current financial period, SkyCity has
recognised $16.6 million (A$15.4 million) (30 June 2020: NZ$8.3 million, A$7.8 million) from the Australian JobKeeper plan.
Liquidated Damages
Included within The Fletcher Construction Company Limited ("FCC") construction contracts for the NZICC and Horizon
Hotel is the right to liquidated damages if certain milestones are not met. To date SkyCity has withheld $39.5 million from
payments to FCC for liquidated damages. As part of a settlement agreement signed on 30 November 2020, FCC has
agreed to not challenge retention of the amount, and accordingly $39.5 million has been recognised as other income in the
current financial period. At 30 June 2020 and 31 December 2019, this amount was included within contingent assets.
6 NZICC Fire
On 22 October 2019, there was a significant fire at the construction site of the NZICC in Auckland. This fire has caused
extensive damage to the NZICC and damage to Horizon Hotel which is being constructed on the adjacent site. To date, it
has not been possible to complete a full assessment of the extent of damage caused by the fire. The Group has engaged
an independent expert to estimate the likely extent of damage.
Both buildings are insured and all significant costs associated with the fire are expected to be fully covered. Any costs not
covered by insurance are expected to be sought from Fletcher Construction Company Limited (FCC or the Contractor) who
is the contractor constructing both buildings.
As noted above, at this point in time a full assessment of the damage is not available, nor is an agreed reconstruction
timeline available. As a result, these financial statements include a number of significant judgements and estimates to
determine the appropriate accounting. The estimated damage assessment and cost of remediation is particularly sensitive
to the assessment of the extent of damage to the structural steel and facade. These judgements and estimates will
continue to be reviewed as new information becomes available. It is possible that the actual financial impacts will differ
from those included in these financial statements and these differences may be material. Details of the judgements and
estimates made are provided in the following parts of this note and should be read in conjunction with the information
disclosed in the 30 June 2020 financial statements.

SkyCity Entertainment Group Limited
Notes to the Financial Statements
For the six month period ended 31 December 2020
(continued)

6 NZICC Fire (continued)
-12-

The Group has engaged external expert advisers to assist in determining the appropriate treatment of the NZICC fire. Rider
Levett Bucknall Auckland Limited (RLB) have been appointed to assist with assessing the NZICC damage and cost of
remediation.
a Income

6 months
31 December
6 months
31 December
12 months
30 June
2020 2019 2020

$'000 $'000 $'000
Contract works insurance recovery 6,000 225,785 336,702
Other recoveries 60,770 4,465 37,456
Liquidated damages for Nelson St car park access - 10,342 10,342
66,770 240,592 384,500
NZICC fire related income consists of:
Insurance recovery for damage to the NZICC and Horizon Hotel ($6.0 million)
While the insurers have acknowledged the fire event and confirmed SkyCity's contracts works policy will respond in relation
to damage to the NZICC and Horizon Hotel, no complete reconstruction cost or damage estimates are currently available
from the Contractor or the insurers. Accordingly, the Group has engaged an independent expert to estimate the likely
reconstruction costs to address the damage. These are based on limited information and are highly sensitive to the actual
extent of damage which has not yet been fully assessed. For the NZICC, reconstruction costs have been estimated to be
between $330.0 million and $370.0 million (30 June 2020: between $330.0 million and $375.0 million). For the Horizon
Hotel, reconstruction costs have been estimated at between $12.0 million and $15.0 million (30 June 2020: $6.0 million).
Based on this information, the Group has assumed an insurance recovery for both buildings of $342.0 million, being the
lower end of the NZICC and Horizon Hotel ranges. The Group considers recovery of this amount to be virtually certain.

As a result of this updated information, the recovery has increased by $6 million in the current financial period.
These estimates are highly sensitive to the actual extent of damage and the ultimate insurance recovery for the damage
may differ from this initial assessment once detailed assessment of the actual damage and rebuild planning is completed
for both buildings. As a result, it is possible the insurance recovery of $342.0 million may change materially.
Other recoveries ($60.8 million)
In addition to recovery of the expected reconstruction costs, the Group is able to seek recovery of additional items,
including the following:
• business interruption costs and lost gross profit while the Auckland precinct was closed or affected by the fire;
• payments required to be made by SkyCity under the Auckland Car Park Concession Agreement (for lack of access to
the NZICC car parks);
• site preparation and clearing costs;
• costs of professional advisers assisting the Group as a result of the fire; and
• additional ongoing operating costs as a result of the fire.
The Group estimates that the additional costs incurred and lost gross profit since the fire totalled $117.9 million. A further
recovery of $60.8 million has been accrued for these items in the current financial period and the balance of $19.7 million
has been included as a contingent asset (refer note 21).
Initial recovery for these additional items will be sought from insurers where appropriate. To the extent recovery under the
Group’s insurance policies is not available, recovery will be sought from the Contractor, including all insurance excesses.

SkyCity Entertainment Group Limited
Notes to the Financial Statements
For the six month period ended 31 December 2020
(continued)

6 NZICC Fire (continued)
-13-

b Expenses


6 months
31 December
6 months
31 December
12 months
30 June
2020 2019 2020

$'000 $'000 $'000
Write-off of NZICC and Horizon Hotel capitalised
work-in-progress 13,783 101,786 193,868
Release from Deferred Licence Value liability 5,024 (85,404) (165,785)
NZICC car park obligation (8,984) 28,653 43,047
Site preparation, demolition and other costs 56,841 2,500 36,960
66,664 47,535 108,090
NZICC fire related expenses consists of:
Write-off of NZICC and Horizon Hotel capitalised work-in-progress ($13.8 million)
Based on updated estimates provided by RLB, the Group has estimated that approximately 51% of the NZICC (30 June
2020: 52%) and 10% of the Horizon Hotel (30 June 2020: 5%) construction work to the date of the fire has been destroyed
and will need to be replaced. As a result, approximately $207.7 million of costs previously capitalised as work in progress
in Property, Plant and Equipment have been written off. This is an increase of $13.8 million in the current financial period.
This estimate is highly sensitive to the actual extent of damage and the ultimate write-off may differ once further
assessment is completed on the damage to both buildings. As a result, it is possible the write off of $207.7 million may
increase or decrease materially.
Release from Deferred Licence Value liability ($5.0 million reversal)
The amount of the release has been estimated at $160.8 million (30 June 2020: $165.8 million) based on the latest
estimated percentage of damage to the NZICC. This represents 42.2% (30 June 2020 43.5%) of the remaining Deferred
Licence Value liability (the NZICC was estimated to be 83% complete prior to the fire).
The updated estimated damage percentage has resulted in a $5.0 million partial reversal of the Deferred Licence Value
release in the current financial period.
The ultimate transfer of the Deferred Licence Value liability is highly sensitive to the actual extent of damage and may differ
from this initial assessment once a detailed assessment of the actual extent of damage to the NZICC is completed. As a
result, it is possible the amount of the Deferred Licence Value liability transferred may change materially.
Refer to note 18 for details of the Deferred Licence Value liability.
NZICC car park obligation ($9.0 million reversal)
The Group has recognised a liability to reconstruct the assets associated with the initial 600 NZICC car parks. The Group
has estimated this to be $34.1 million (previously $43.0 million) based on an estimate prepared by RLB.
The ultimate cost for reconstructing these assets may differ from this assessment once detailed planning is completed and
the actual extent of the damage is known. As a result, it is possible the $34.1 million liability may change materially.
Site preparation, demolition and other costs ($56.8 million)
The Group and Contractor have incurred costs relating to site preparation, demolition, cleaning and other items. To the
extent recovery of these costs is considered virtually certain, a matching amount is included in NZICC fire income above.

SkyCity Entertainment Group Limited
Notes to the Financial Statements
For the six month period ended 31 December 2020
(continued)

6 NZICC Fire (continued)
-14-

c Current assets
31 December 31 December 30 June
2020 2019 2020

$'000 $'000 $'000

Insurance recoveries for damages to the NZICC and Horizon Hotel 342,702 205,931 336,702
Other insurance recoveries 98,226 4,320 37,456
Recovery of liquidated damages - 8,413 8,413
Payments received from the insurers (106,533) - (106,000)
Transfer to non current receivables (refer note 6(d)) (207,000) (77,000) (227,000)
127,395 141,664 49,571
In addition to the $127.4 million of current NZICC recoveries, there are also non-current recoveries of $207.0 million (refer
below). NZICC recoveries (current plus non-current) total $334.4 million.
NZICC recoveries relate to:
Insurance Recovery for Damage to the NZICC and Horizon Hotel ($342.7 million)
The Group has recognised insurance recoveries of $342.7 million (30 June 2020: $336.7 million) related to the damage to
the NZICC ($330.0 million; 30 June 2020: $330.0 million), Horizon Hotel ($12.0 million; 30 June 2020: $6.0 million) and
various ICT equipment ($0.7 million; 30 June 2020: $0.7 million).

The cost of remediating the NZICC was assessed by SkyCity's experts at between $330.0 million and $370.0 million (30
June 2020: $330.0 million and $375.0 million). Both amounts include a significant contingency given the uncertainty
involved in making this assessment. The $330.0 million amount includes a 20% contingency, while the higher $370.0
million amount includes a 35% contingency (no change from 30 June 2020).
Other Insurance Recoveries ($98.2 million)
These recoveries relate to business interruption following the fire and costs incurred relating to site clearance and
demolition. SkyCity believes recovery of this amount is virtually certain.

d Non-current assets
31 December 31 December 30 June
2020 2019 2020

$'000 $'000 $'000
Insurance recoveries for damages to the NZICC and Horizon Hotel 207,000 77,000 227,000
207,000 77,000 227,000
The split between current and non-current is based on estimated cash flows associated with the reconstruction.

SkyCity Entertainment Group Limited
Notes to the Financial Statements
For the six month period ended 31 December 2020
(continued)

-15-

7 Expenses

6 months
31 December
6 months
31 December
12 months
30 June
2020 2019 2020

$'000 $'000 $'000
Utilities, insurance and rates 11,518 11,275 21,949
Onerous contract expense - - 958
Property expenses 7,114 6,892 12,096
Other items 33,428 29,540 55,246
Expenses relating to short term leases and leases of low value assets 371 804 1,203
Provision for bad and doubtful debts 323 (208) 5,682
Total other expenses 52,754 48,303 97,134

Depreciation 33,471 32,503 67,459
Casino licence amortisation (Adelaide) 1,311 2,763 5,507
Computer software amortisation 7,015 5,644 12,480
Total depreciation and amortisation 41,797 40,910 85,446

Provision for bad and doubtful debts
In the current period the Group has recognised an expense of $0.3 million (31 December 2019: $0.2 million reversal and 30
June 2020: $5.7 million) for bad and doubtful debts primarily relating to a small number of International Business
customers. The Group is continuing to pursue recovery of these balances.
8 Dividends

6 months
31 December
6 months
31 December
12 months
30 June
2020 2019 2020

$'000 $'000 $'000
Prior year's final dividend - 66,867 66,867
Interim dividend - - 66,421
Total dividends provided for or paid - 66,867 133,288
Cents per share
Prior year's final dividend - ¢ 10.0¢ 10.0¢
Interim dividend - ¢ - ¢ 10.0¢
- ¢ 10.0 ¢ 20.0 ¢
No final dividend was declared relating to the 2020 financial year. No dividend has been proposed for the current interim
period.

SkyCity Entertainment Group Limited
Notes to the Financial Statements
For the six month period ended 31 December 2020
(continued)

-16-

9 Net Finance Costs

6 months
31 December
6 months
31 December
12 months
30 June
2020 2019 2020

$'000 $'000 $'000
Finance costs 22,592 22,398 45,419
Foreign exchange (gains)/losses (193) 37 (195)
Interest income (543) (637) (1,060)
Debt restructuring costs - - 7,506
Capitalised interest (7,814) (15,421) (23,057)
Total finance costs 14,042 6,377 28,613
10 Non-Current Liabilities - Interest Bearing Liabilities
31 December 31 December 30 June
2020 2019 2020

$'000 $'000 $'000
Car park concession (main site nested car parks) 46,698 42,856 42,802
USPP notes 220,207 370,313 241,420
Syndicated bank facility 175,141 - -
NZ bond - 125,000 -
Deferred funding expenses (619) (1,852) (1,491)
Total non-current liabilities - interest bearing liabilities 441,427 536,317 282,731

(a) CBA Revolving Credit Facility
In July 2020 a NZ$100 million revolving credit facility was established with the Commonwealth Bank of Australia. The
facility matures on 31 December 2021. As at 31 December 2020 the facility was undrawn.

(b) United States Private Placement Notes
The USPP fixed rate US dollar borrowings have been hedged and 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 2021 and March 2028.
• US$100.0 million maturing 15 March 2021
• US$100.0 million maturing 17 March 2025
• A$65.4 million maturing 15 March 2028
The movement in the amount of the USPP notes from 30 June 2020 relates to foreign exchange and interest rate
movements.

SkyCity Entertainment Group Limited
Notes to the Financial Statements
For the six month period ended 31 December 2020
(continued)

10 Non-Current Liabilities - Interest Bearing Liabilities (continued)
-17-

(c) 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 2020, SkyCity had in place revolving credit facilities of:
• A$280.0 million maturing 31 March 2022
• NZ$60.0 million maturing 15 June 2022
• NZ$85.0 million maturing 15 June 2023
• NZ$85.0 million maturing 15 June 2024
A total of $175.1 million was drawn at 31 December 2020 (31 December 2019: $30.0 million; 30 June 2020: $15.0 million).
(d) Auckland Car Park Concession - financing element
As detailed in the 30 June 2020 financial statements, a portion of the sale of the Auckland Car Park Concession relates to
450 car parks for the exclusive use of SkyCity. This portion is treated as a financial liability.

The $220 million concession payment has been allocated between these 450 nested car parks and the unnested remaining
car parks based on their respective fair values. At 19 August 2019, $45.8 million was allocated to these nested car parks
and was recognised as the initial financial liability.

From that date, interest expense has been recognised as an addition to this liability and payments for the use of the nested
car parks have been deducted.
(e) New Zealand Bond
The New Zealand bonds were redeemed and repaid on 28 September 2020.
(f) Debt covenants
As at 31 December 2020, SkyCity was in compliance with all debt covenants. Waivers remain in place for all gearing
ratios and interest cover covenants to 30 June 2021.
11 Current Liabilities - Interest Bearing Liabilities
31 December 31 December 30 June
2020 2019 2020

$'000 $'000 $'000
Syndicated bank facility - 30,000 15,000
USPP notes 138,370 21,127 155,618
NZ bond - - 128,500
Car park concession (main site nested car parks) - 3,132 3,391
Total current liabilities - interest bearing liabilities 138,370 54,259 302,509
Refer note 10 for details of the USPP notes.

SkyCity Entertainment Group Limited
Notes to the Financial Statements
For the six month period ended 31 December 2020
(continued)

-18-

12 Income Tax Expense/(Benefit)
6 months 6 months 12 months
31 December 31 December 30 June
2020 2019 2020

$'000 $'000 $'000
Profit before tax 96,173 359,635 233,118

Income tax @ 28% 26,928 100,698 65,273
Expenses not deductible for tax purposes 1,815 1,007 2,210
Foreign exchange variances (95) (95) (53)
Differences in overseas tax rates 472 (37) (3,402)
Asset held for sale - (448) (411)
Prior period adjustments (26) 172 243
NZICC fire capital income / expenses (292) (50,807) (73,955)
Car park concession proceeds - (18,611) (20,062)
Adelaide casino licence impairment - - 48,188
Fair value adjustments - - 3,955
Reinstatement of New Zealand tax building depreciation - - (24,145)
Non taxable settlement amount (11,060) - -
Other 15 - 7
Tax expense 17,757 31,879 (2,152)


The weighted average applicable tax rate was 18.5% (2020: -0.9%, 1H20: 8.9%). The weighted average tax rate has been
significantly impacted by:

• NZICC fire capital income/expense;
• Auckland car park concession proceeds;
• Adelaide casino licence impairment;
• fair value adjustments;
• reinstatement of New Zealand tax building depreciation; and
• non taxable settlement amount.

Excluding these items the weighted average tax rate would have been 29.5% (2020: 27.4%, 1H20: 28.2%).
13 Non-current assets - Property, plant and equipment
NZICC Fire
As detailed in note 6, on 22 October 2019 a fire at the NZICC development site resulted in significant damage to the NZICC
and damage to the adjacent Horizon Hotel.
As a result of the fire, $207.7 million relating to the NZICC and Horizon Hotel work in progress balance has been written off
($193.9 million in financial year 2020 and a further $13.8 million in the current financial period). This estimate is based on
an initial assessment of the damage and may materially change as further information becomes available.
Adelaide Expansion
As detailed in note 2(a), in December 2020 the Adelaide casino expansion and hotel development was substantially
completed and opened to the public. As a result $148.1 million of the deferred licence value was transferred to property,
plant and equipment to partially offset the Adelaide work in progress balance (refer note 17).

SkyCity Entertainment Group Limited
Notes to the Financial Statements
For the six month period ended 31 December 2020
(continued)

-19-

14 Current assets - Receivables and Prepayments
31 December 31 December 30 June
2020 2019 2020

$'000 $'000 $'000
Net trade receivables
Trade receivables (gross) 22,078 43,500 50,070
Provision for doubtful receivables (6,793) (14,882) (20,509)
Trade receivables (net) 15,285 28,618 29,561
Sundry receivables and prepayments 31,242 20,742 12,691
Total receivables and prepayments 46,527 49,360 42,252
Provision for bad and doubtful debts
In the current period the Group has recognised an expense of $0.3 million (31 December 2019: $0.2 million reversal and 30
June 2020: $5.7 million) for bad and doubtful debts primarily relating to a small number of International Business
customers. The Group is continuing to pursue recovery of these balances.

In the current period, $14.0 million of previously provided for debts were written-off.




15 Current liabilities - Payables and Provisions
31 December 31 December 30 June
2020 2019 2020

$'000 $'000 $'000
Trade payables 15,493 31,200 19,364
Deferred income 2,119 1,485 2,302
Accrued expenses 77,946 71,261 76,366
Employee benefits 48,416 39,617 40,427
NZICC car park obligation (refer note 6(b)) 34,063 28,653 43,047
Onerous contract provision 688 - 836
Liquidated damages - 39,500 39,500
178,725 211,716 221,842

SkyCity Entertainment Group Limited
Notes to the Financial Statements
For the six month period ended 31 December 2020
(continued)

-20-

16 Non-current assets - Investment properties
31 December 31 December 30 June
2020 2019 2020

$'000 $'000 $'000
Opening balance 72,400 40,660 40,660
Acquisitions 283 1,587 2,252
Net gain from fair value adjustment - - (14,055)
Transfer from Property, Plant and Equipment - 16,420 16,420
Transfer from Property, Plant and Equipment - NZICC car parks 1,874 - 27,123
Closing balance 74,557 58,667 72,400







(a) Valuation basis
Due to the uncertainty related to COVID-19, the 30 June 2020 independent valuations were reported on the basis of
"material valuation uncertainty" meaning less certainty and a higher degree of caution should be applied to the valuations.
While full valuations have not been prepared, SkyCity has confirmed with the valuer (Bower Valuations Limited) that while
uncertainty still exists it is no longer considered "material" as at 31 December 2020.
(b) Transfer from Property, Plant and Equipment - NZICC Car Park
As detailed in the 30 June 2020 financial statements, approximately 650 car parks are due to be provided to Macquarie as
part of the Auckland car park concession transaction. Based on the expected delay in providing these car parks it is
expected that this will be an operating lease and therefore those car parks will form an investment property. As a result a
total of $29.0 million (previously $27.1 million) has been transferred from Property, Plant and Equipment to Investment
Properties. The current financial period impact is $1.9 million and is as a result of updated NZICC damage estimates on
the car parks prepared by RLB.
17 Current liabilities - Deferred licence value

31 December 31 December 30 June
2020 2019 2020

$'000 $'000 $'000
SkyCity Adelaide 5,041 148,754 153,165
5,041 148,754 153,165
The SkyCity Adelaide deferred licence value liability was initially recognised in 2014 following an amendment to the
Adelaide Approved Licensing Agreement (ALA). The agreement to amend the ALA required SkyCity Adelaide to agree to
undertake a A$350 million casino expansion and hotel development project - the deferred licence value liability relates to
this requirement.
The casino expansion and hotel development was substantially completed in December 2020 and the majority of the
deferred licence value was transferred to property, plant and equipment. The remaining balance of $5.0 million relates to
works to be completed in the second half of the financial year.

SkyCity Entertainment Group Limited
Notes to the Financial Statements
For the six month period ended 31 December 2020
(continued)

-21-

18 Non-current liabilities - Deferred licence value

31 December 31 December 30 June
2020 2019 2020

$'000 $'000 $'000
SkyCity Auckland 219,996 295,352 214,972
219,996 295,352 214,972
SkyCity Auckland
Following the NZICC fire (note 6), the damaged portion of the NZICC was disposed. As a result of this disposal, $160.8
million (previously $165.8 million) of the SkyCity Auckland Deferred Licence Value liability has been released to the Income
Statement. Changes to the RLB estimates have resulted in a partial reversal in the current financial period's Income
Statement of $5.0 million.
The $160.8 million release is based on an initial assessment of the damage from the NZICC fire and may materially change
as further information becomes available.
19 Share Capital
31 December 31 December 30 June 31 December 31 December 30 June
2020 2019 2020 2020 2019 2020

Shares Shares Shares $'000 $'000 $'000
Opening balance of ordinary shares
issued 739,196,806 672,351,166 672,351,166 1,288,287 1,126,996 1,126,996
Share rights issued for employee
services - - - 2,795 2,791 3,698
Net movement in treasury shares
value - - - - 234 436
Share buy back and cancellation - (5,154,360) (5,154,360) - (20,003) (20,003)
Equity raising 21,008,403 - 72,000,000 48,737 - 177,160
760,205,209 667,196,806 739,196,806 1,339,819 1,110,018 1,288,287

Included within the number of shares are treasury shares of 2,804,058 (31 December 2019 and 30 June 2020: 5,155,841)
held by the Group. Treasury shares may be used to issue shares under the Group's employee incentive plan or upon the
exercise of share rights.

Equity Raising
The share purchase plan was completed on 9 July 2020 and involved the issue of 21,008,403 new shares at $2.38 per
share raising a total of $50.0 million. Costs associated with the placement of $1.3 million were deducted from the share
proceeds.

SkyCity Entertainment Group Limited
Notes to the Financial Statements
For the six month period ended 31 December 2020
(continued)

-22-

20 Reserves

6 months
31 December
2020
6 months
31 December
2019
12 months
30 June
2020

$'000 $'000 $'000
(a) Reserves

Asset revaluation reserve 5,936 5,936 5,936
Hedging reserve - cash flow hedges (16,729) (18,431) (19,913)
Foreign currency translation reserve (18,874) (25,637) (17,802)
Cost of hedging reserve (1,390) (1,654) (1,542)
Total reserves (31,057) (39,786) (33,321)
Movements:

Asset Revaluation Reserve
Opening balance 5,936 - -
Revaluation - 5,936 5,936
Closing balance 5,936 5,936 5,936
Hedging Reserve - Cash Flow Hedges
Opening balance (19,913) (22,685) (22,685)
Revaluation (36,855) (1,280) 9,154
Transfer to finance costs 41,296 7,224 (5,143)
Deferred tax (1,257) (1,690) (1,239)
Closing balance (16,729) (18,431) (19,913)
Foreign Currency Translation Reserve
Opening balance (17,802) (24,087) (24,087)
Exchange differences on translation of overseas subsidiaries (1,072) (1,550) 6,285
Closing balance (18,874) (25,637) (17,802)
Cost of Hedging Reserve
Opening balance (1,542) (1,793) (1,793)
Revaluations (251) (269) (113)
Transfer to finance costs 462 462 462
Deferred tax (59) (54) (98)
Closing balance (1,390) (1,654) (1,542)
21 Contingencies
(a) Contingent liabilities

The possibility exists for the Group to receive third party claims in respect to the NZICC fire. However, only minor claims
have been received to date. It is the Group’s expectation that any claims received will be covered by either the insurers or
the Contractor (31 December 2019 and 30 June 2020: nil).
Recent Australian case law has potentially changed the treatment of some Australian casual employees. The courts have
held that certain casual employees are actually permanent employees and are entitled to all the benefits associated with
this. SkyCity has estimated its maximum exposure at A$3.2m, however it believes any payment as a result of the recent
case is unlikely.

SkyCity Entertainment Group Limited
Notes to the Financial Statements
For the six month period ended 31 December 2020
(continued)

21 Contingencies (continued)
-23-

(b) Contingent assets
As detailed in note 6, the Group intends to seek recovery from FCC for losses associated with the NZICC fire that are not
covered by the insurers. These losses include insurance excesses, payments to Macquarie under the Auckland Car Park
Concession Agreement and other items. To date, the Group has identified $19.7 million of costs where it does not believe
recovery is virtually certain at this time and therefore no income has been recognised. However, recovery of these costs is
considered probable and they are therefore included as a contingent asset.
There are no other contingent assets at 31 December 2020 (31 December 2019 and 30 June 2020: nil).
22 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
2020 2019 2020

$'000 $'000 $'000
Property, plant and equipment 425,098 412,442 440,342
The majority of the capital commitments relate to the construction of the NZICC and Horizon Hotel.
The above commitments include the estimated cost of reinstating the NZICC and Horizon Hotel. The cost of reinstating
the damage to the NZICC and Horizon Hotel arising from the NZICC fire is currently estimated to be $330.0 million to
$370.0 million for the NZICC and $12.0 million to $15.0 million for the Horizon Hotel, all of which is expected to be paid for
using insurance proceeds. The actual costs may be materially different to these estimates. Further information is
included in note 6.
23 Assets Classified as Held For Sale
31 December 31 December 30 June
2020 2019 2020

$'000

$'000

$'000

Land 8,894 8,678 8,936
Buildings 2,363 2,020 2,080
Plant and equipment 327 3 3
Goodwill 1,908 - -
Software 43 - -
Total 13,535 10,701 11,019
Assets held for sale consist of the Darwin Little Mindil site $11.0 million (31 December 2019: $10.7 million and 30 June
2020: 11.0 million) and Lets Play Live Media $2.6 million (30 June 2020: nil).

SkyCity Entertainment Group Limited
Notes to the Financial Statements
For the six month period ended 31 December 2020
(continued)

-24-

24 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
2020 2019 2020

$'000 $'000 $'000

Profit for the period 78,416 327,985 235,388
Depreciation and amortisation (including discontinued
operations) 42,371 41,461 86,559
Net finance costs 14,042 6,377 28,613
Current period employee share entitlement 309 2,791 3,697
NZICC fire related income (66,770) (240,592) (384,500)
NZICC fire related costs 66,664 47,535 108,090
Gain on sale of fixed assets (67) (66,863) (66,779)
Share of (losses) of associates - 83 83
Fair value adjustment to investment property - - 14,055
Adelaide casino licence impairment - - 160,600
Change in operating assets and liabilities
Change in receivables and prepayments (4,275) (65) 7,041
Change in inventories (1,355) (1,491) (169)
Change in deferred tax liability 5,165 1,518 (24,271)
Change in tax receivable - current (3,745) 930 (1,059)
Change in deferred tax asset 1,256 3,027 (2,748)
Change in tax payable current 1,856 (9,782) (13,877)
Change in payables and provisions - current (43,117) (16,396) (6,270)
Change in payables - non current 1,572 - 9,057
Change in provisions - (96) -
Investing and financing items included in working capital
movements 28,294 63 (33,344)
Net cash inflow from operating activities 120,616 96,485 120,166
25 Events Occurring after the Balance Date
On 14 February 2021, the New Zealand Government reinstated COVID-19 Alert Level 3 for the Auckland region and the
rest of New Zealand moved to Alert Level 2. From 15 February 2021, the vast majority of SkyCity Auckland’s operations
were closed, including all gaming areas. From 15 February 2021, SkyCity Hamilton and SkyCity Queenstown have
operated in compliance with the New Zealand Government’s requirements for social gatherings, contact tracing and
hygiene.
On 17 February 2021, the New Zealand Government announced that from 18 February 2021 the Auckland region will move
to COVID-19 Alert Level 2 and the rest of New Zealand will move to Alert Level 1. From 18 February 2021, SkyCity
Auckland will re-open and operate in compliance with the New Zealand Government’s requirements for social gatherings,
contact tracing and hygiene.
Following the initial COVID-19 outbreak in 2020, SkyCity restructured its operations and funding arrangements to withstand
a long recovery period and the latest closure and operating restrictions have not required any further restructuring.

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