SkyCity Entertainment Group Limited

SKC.AX

Gambling, Resorts & Casinos · Consumer Cyclical

Price

A$0.50

-0.01 (-0.99%)

Market Cap

A$546.0M

Exchange

Australian Securities Exchange

Winston Score

Winston is serious

Below-average fundamentals — multiple weak pillars.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Weak

Growth

Weak

Cash Flow

Good

Stability

Mixed

Valuation

Strong

Dividends

Good

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Share count rising — dilution

+36.4% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 760.2M (2022) → 1.04B (2026)

Winston Score History

The full picture

SkyCity Entertainment Group runs casinos and hotels in New Zealand and Australia. Its main properties are SkyCity Auckland, which includes the iconic Sky Tower, and SkyCity Adelaide. Customers are a mix of local gamblers, tourists, and hotel guests. The company is one of the largest casino operators in New Zealand and holds a long-term exclusive casino license for Auckland.

SkyCity earns money from casino gaming tables and slot machines, hotel room bookings, restaurants, and bars. Most of its revenue comes from New Zealand, with a smaller share from its Adelaide property. The exclusive Auckland license is a meaningful competitive advantage, as no other casino can legally operate in that city. However, the company faces serious regulatory risk — it has been under investigation by Australian and New Zealand financial regulators over anti-money laundering compliance failures, which has already resulted in fines and could lead to further penalties or license conditions that restrict its operations.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-5.6% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-81.6% YoY

YoY Growth Rate

Earnings declining

R&D Spend

NZ$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

0.7%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

NZ$158M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

SkyCity Entertainment Group Limited's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

28.2%

Modest — 28.2% gross margin

Profit after running costs

Operating Margin

0.8%

Thin — 0.8% operating margin

Return on the money invested

ROCE

1.2%

Weak — 1.2% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales growth

Sales YoY

-7.9%

Shrinking sales (-7.9% YoY)

Profit growth

EPS YoY

-54.0%

Earnings shrinking (-54.0% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is

EPS Consistency

3/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash

Cash Conversion

502%

Turns 502% of profit into real cash

Spare cash per sale

FCF Margin

-1.5%

Burning cash (-1.5%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns

Debt / Equity

0.37

Conservative — low debt load (0.37)

Covers its interest

Interest Cover

0.91x

Dangerous — barely covers interest (0.9x)

Interest coverage below 1. Their profits don't cover the interest bill.

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Valuation

Price vs profit

P/E Ratio (TTM)

28.2x

Growth-priced — P/E 28.2

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year

P/E vs Forward

+19.6

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (28.2 → 8.6)

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Dividends

Dividend

Dividend Yield

38.14%

Healthy income — 38.14% yield

Yield above 6% — often a flag the market is pricing in a cut.

Dividend record

Dividend Growth

-40.8%

Dividend cut (-40.8% YoY) — warning sign

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