SkyCity is Eyeing an Asset Lighter Plan

March 28, 2018 by

The SkyCity Entertainment Group is looking to free up money from its current assets during a heavy investment period. This is coming at the same time that the casino company is committing to protecting dividend payouts.

SkyCity is based in Auckland, and is investing NZ$330 million in redeveloping its Adelaide casino, which is underperforming, NZ$703 million in a convention centre and Hobson street hotel in Auckland, and has also stated that it will buy the neighbouring AA Centre, for NZ$47 million. It has flagged the latter property for additional development in the food and beverage, accommodation, new gaming spaces and entertainment departments.

SkyCity is also considering enhancing its Hamilton casino so that it includes accommodation and Riverbank development, and is investing in information technology, IT, to upgrade an outdated infrastructure and make future growth possible.

While it has increased its expenditure, however, the company does not want to lower its dividend levels in order to divert funds to reinvestment opportunities, stating that it is committed to the dividend policy already in place because these are vital to a large proportion of its shareholders.

SkyCity has a policy of paying 80% of net profit after tax, adjusted for capitalised interest, and subject to a minimum of NZ$0.20 per share, per annum.

The casino company expects that its total debt will peak at roughly NZ$1 billion in 2020, with NZ$1.09 billion of debt facilities maturing between 2020 and 2028. It has committed to keeping its debt at a level needed to hold on to its BBB- credit rating with Standard Poor’s.

TOP pokies casinosOctober 2024
#CasinoNZRatingBonusPlay
1 IE allowed5/5$1600 NZD Play now
Review
2 IE allowed4.9/5$1000 NZD Play now
Review
3 IE allowed4.8/5$350 NZD Play now
Review
4 IE allowed4.7/5$750 NZD Play now
Review

William Bettany

More About

William Bettany has spent a lot of time in New Zealand’s casinos, indulging in his passion for pokies both online and off. With an incredible array of experience and insight at his disposal, William is sharing all the hottest casino news with PokiesOnlineNZ.net.nz, and paving the way to players putting more money away at the end of the day.
William’s on-target advice, superior playing experience, and no-nonsense reporting have made sure his opinions are listened to, and he values sharing the news and his views, reviews and industry insights with others.

View Posts - Visit Website