Brokerage Morningstar trims FY24 forecast for NZ's SkyCity Entertainment

Skycity Entertainment

10/12/2023 18:32

** Brokerage Morningstar cuts its FY24 earnings forecast for
New Zealand's tourism and entertainment firm SkyCity
Entertainment  SKC.NZ  
    ** Lowers FY24 EBITDA forecast by 8% to NZ$289 mln ($176.32
mln), below the co's updated guidance of NZ$290 mln-NZ$310 mln
    ** Says brokerage's updated EBITDA forecast includes a
10-day closure of co's New Zealand (NZ) properties which is not
included in co's guidance
    ** Brokerage expects co's NZ casino license suspended for 10
days in FY24 after NZ's Department of Internal Affairs alleged
co failed to comply with its regulatory obligation to monitor
continuous play by a customer between 2017 and 2021
    ** "Fiscal 2024 is shaping up to be more challenged than we
and the company initially anticipated" - Morningstar 
    ** Brokerage still sees co delivering strong earnings growth
over the next decade
    ** Four of six analysts rate the stock "buy" or higher, one
"hold" and one "sell"; their median PT is NZ$3.08 – LSEG data
    ** SKC stock down 24.5% YTD, as of last close

    


($1 = 1.6391 New Zealand dollars)

 (Reporting by Echha Jain in Bengaluru; Editing by Susan Fenton)
 ((Echha.jain@thomsonreuters.com))