SkyCity to reopen Auckland casino on Monday, full-year result due out later next week

SkyCity will re-open its Auckland casino on Monday. Photo / Peter Meecham

SkyCity Entertainment Group plans to open its Auckland casino on Monday, after it was forced to shut during the city's alert level three.

But the company gave no indication about the impact the second closure this year had on its biggest money-making location.

The hotel and entertainment giant issued an update on its New Zealand properties ahead of next week's full-year result, due out on Thursday.

"SkyCity advises that its Auckland casino and entertainment facilities currently remain closed and its Hamilton and Queenstown properties remain open. This follows the announcement by the New Zealand Government on August 24 that the Covid-19 alert level will remain," it said.

The business said it expected to reopen its Auckland property at alert level 2 "with the same physical distancing and hygiene measures in place as previously implemented at alert level 2 and currently deployed at its Hamilton and Queenstown properties".

It noted how the Government would review the alert level status nationally before September 6.

SkyCity will provide further updates as new material information becomes available, it said.

Last Monday, the Herald reported how two men travelling from Auckland managed to pass lockdown restrictions to get into Hamilton to play at a SkyCity casino. But their luck ran out when staff there recognised where the men had come from and they were asked to leave immediately.

The breach happened just a day after Auckland was put into alert level 3 lockdown when a family of four tested positive for Covid-19 through community transmission.

SkyCity's share NZX share price fell from January's $4.08 to $2.53 yesterday, leaving it with a $1.9b market capitalisation.

But insurers appear to have boosted its fortunes after last October's fire at the $703m partially built NZ International Convention Centre, which also affected the neighbouring Horizon Hotel.

Last Thursday, the business said it expected its June 30, 2020, result to be outside the previous guidance ranges released on June 17 when the business issued its equity raising investor presentation.

SkyCity said in June it wanted to strengthen its balance sheet with new and extended capital via $230m new ordinary equity, $160m new debt facilities and $170m extension of existing bank loans.

Last week, it said: "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 would be higher than previous guidance as a result of higher estimates for the insurance proceeds for the damage to and reinstatement costs for the convention centre and hotel, it said.

"Offsetting this increase in reported earnings, and as previously advised, SkyCity proposes to recognise an impairment of Adelaide Casino's book value of A$150m [$161m]," it said.

SkyCity will release its full FY20 financial results on September 3 after getting a waiver to give it more time.