SkyCity Focuses on Compliance and Financial Outlook at Annual Meeting
SkyCity Entertainment Group held its annual shareholders’ meeting, addressing significant regulatory and financial updates from the past year while outlining plans for future growth and compliance improvements.
Chair Julian Cook opened the meeting by reflecting on the previous year, which included leadership changes with the appointment of a new CEO, Jason Walbridge, and CFO, as well as the launch of the Horizon SkyCity hotel. However, the spotlight was on the company’s regulatory challenges.
Cook highlighted the resolutions of various regulatory issues, including:
- A NZ$4.16 million (US$2.48 million) fine issued by the Department of Internal Affairs for anti-money laundering (AML) breaches in May.
- A AU$67 million (US$44.7 million) penalty paid in June for AML and counter-terrorism financing (CTF) failings at SkyCity Adelaide.
- The five-day closure of SkyCity Auckland ordered by the Department of Internal Affairs.
Cook also announced the establishment of a new Board Risk and Compliance Committee aimed at enhancing oversight and compliance measures.
One topic notably missing from the agenda was the company’s unsuccessful appeal against the High Court of Australia’s decision requiring SkyCity Adelaide to pay up to AU$25.3 million in penalties.
CEO Jason Walbridge outlined plans to collaborate with Kroll, a global risk consultancy, to implement further corrective measures addressing AML and CTF challenges. Walbridge also emphasised the importance of maintaining a strong domestic presence for licensees as part of the company’s ongoing reforms.
SkyCity’s financial year 2024 results, announced earlier this year, revealed a slight 0.3% revenue increase to NZ$959.6 million, while EBITDA declined by 8%. The company reported a net loss of NZ$143.3 million. These figures underscore the importance of the group’s strategic realignment as it looks to improve performance in the coming financial year.
With its latest measures, SkyCity aims to strengthen its operational integrity and financial position, paving the way for a more stable future.
