SkyCity sells stake in online gaming platform for $55m

SkyCity has sold out of a European online gaming business. Photo / NZME

SkyCity has sold its 10% holding in Gaming Innovation Group (GiG), a European-based online gaming platform provider and media services operator, with net proceeds totalling $55 million.

The company said it plans to use the proceeds to pay down debt.

SkyCity said it still had a valuable relationship with GiG through its involvement with the SkyCity Online Casino, which is operated from Malta.

“However, SkyCity has decided to divest its shareholding in GiG as it is non-core to its ongoing operations, and is now not considered strategically necessary for SkyCity,” the company said today.

SkyCity acquired its shareholding in GiG in April 2022 for €25m - about $40m at that time.

Early this month, SkyCity said it now expects underlying group earnings before interest, tax, depreciation and amortisation (ebitda) of between $280m and $285m and underlying group net profit for 2024 of between $120m and $125m.

That compared to previous guidance of underlying group ebitda for 2024 of between $290m and $310m and underlying group net profit for 2024 of between $125m and $135m.