New Zealand's SkyCity Entertainment tanks 30% on discounted equity raising, profit drop

Skycity Entertainment

22/08/2025 02:47

Aug 22 (Reuters) - Shares of New Zealand-based SkyCity Entertainment SKC.NZ tanked more than 30% on Friday, a day after the casino operator announced a NZ$240 million ($139.49 million) equity raising and reported a steep drop in its full-year underlying earnings.

Trading in SkyCity's securities resumed on Friday after being halted on Tuesday afternoon pending an announcement on capital raising and its full-year earnings.

On Thursday, SkyCity said it would raise NZ$240 million at 70 NZ cents per share, a 25% discount to its closing price on Tuesday.

The casino operator also reported a 42% decline in its full-year underlying net profit to NZ$71.5 million, hurt by regulatory costs and restrained spending by cash-strapped patrons, among others.

($1 = 1.7206 New Zealand dollars)

 (Reporting by Sameer Manekar in Bengaluru; Editing by Rashmi Aich)

 ((Sameer.Manekar@thomsonreuters.com;))