"Despite positive current trading, there is no change to the previous guidance for FY21 with SkyCity expecting group normalised EBITDA to be above FY20 but still well below pre-Covid-19 and FY19 levels," it said today.
The operating environment remains unpredictable due to Covid, it said, citing the most recent 11-day Auckland closures in February and March.
"Accordingly SkyCity is unable to provide formal earnings guidance at this time.
"Based on expected performance and assuming no prolonged property closures before the end of FY21, SkyCity expects to meet its financial covenants for the 30 June 2021 testing period and pay a final dividend consistent with the revised dividend policy announced at the time of its 1H21 results," it said.
The company raised $230m new equity from shareholders last June and July.
It gave an update on the NZ International Convention Centre project, saying there had been no material change to previous guidance on total costs which remain at $750m.
S&P Global Ratings said SkyCity would use the money raised to pay down drawings on its bank facilities.
Its long-term monopoly positions in its key markets, good asset quality supported by ongoing reinvestment and effective management and earnings resilience through traditional economic cycles underpin its business risk profile.
"We view SkyCity's Auckland casino to be the highest quality asset in its portfolio and a key driver of the group's performance. Furthermore, SkyCity holds exclusivity licenses in Auckland until 2048, helping it to maintain its market share.
"Tempering these strengths are Covid-19 related business interruptions to trading, execution risks associated with the group's major developments in Auckland, earnings concentration in Auckland and the risks of operating in a heavily regulated industry," S&P Global Ratings said.
The company has a market capitalisation of around $2.4 billion, net debt of $587m and net assets of $1.5b.
Its shares are trading on the NZX today around $3.57.
