Morningstar sees SkyCity's capital intensity dropping with NZICC completion; stock up

Skycity Entertainment

09/06/2025 03:28

Updates with share moves

** SkyCity Entertainment Group SKC.NZ gains 5.3% to NZ$1.00; top pct gainer on New Zealand's benchmark index .NZ50

** Casino operator said it would seek damages from Fletcher Building FBU.NZ for losses incurred due to delays in completing New Zealand International Convention Centre (NZICC); expects venue to open in February 2026

** Morningstar expects co's earnings from NZICC to begin from late FY26; retains PT of NZ$2.8

** Says potential claim of more than NZ$330 mln ($198 mln) in damages adds upside; expects an out-of-court settlement for nominal amount

** Sees co's capital intensity easing materially from FY26

** Says NZICC last of co's major projects to be completed

** SKC falls 35.2% this year, as of last close

($1 = NZ$1.6664)

 (Reporting by Adwitiya Srivastava and Nikita Maria Jino in Bengaluru; Editing by Chris Reese)

 ((Nikita.Jino@thomsonreuters.com;))