SkyCity Unveils Capital Plan
SkyCity Entertainment unveils capital plan. The casino plans to raise NZ$915 million to switch up its balance sheet amid the COVID-19 pandemic. The casino reveals that it will not be paying a dividend until June 2021. Additionally, SkyCity says that it will be raising up to NZ$230 million via a discounted share placing. Furthermore, the company states that it has managed to secure new debt facilities that amount to NZ$160 million. Additionally, SkyCity has secured debt agreement relinquishments from its lenders.
SkyCity plans to normalised net profit after tax to NZ$67 million which is a down from of NZ$52 million. This figure is much lower than NZ$85 million which the company forecasted earlier the amount will go to NZ$100 million. SkyCity also revealed that it will review its policy thereafter.
SkyCity Capital Plan Raised to Ensure Sufficient Funds
Graeme Stephens, the chief executive of SkyCity says that the new capital raised seeks to ensure that the company has sufficient funds for the long-term. Additionally, the funds will be enough to finish the major projects the company is currently doing. Currently, SkyCity is expanding the facility in Adelaide, the Horizon Hotel in Auckland as well as the New Zealand International Convention Centre refurbishment.
The convention centre project was hit by a major setback following a fire incident in October 2019. The fire happened during construction and the company was looking to finish the project in 2025.
To further its new capital plan, in September, SkyCity will make an early repayment of $NZ125 million in bonds. This is another part of Sky City’s financial new plan.
Casinos Hit Worst By COVID-19
When the COVID-19 pandemic broke, New Zealand closed its boarders and the number of physical overseas visitors decreased drastically. Gambling sites in New Zealand closed in March. The casinos experienced 900 job losses. The fact of the matter is that casino operators were amongst the worst hit by the restrictions.
SkyCity has laid off close to 1,100 of its over 5,000 staff across New Zealand and Australia. The company has had to pull its annual financial forecast. In May, the company reopened a number of its New Zealand properties. The Adelaide facilities will reopen late June.