SkyCity's capital intensity to drop with NZICC completion, Morningstar says

Skycity Entertainment

08/06/2025 20:15

** Morningstar expects SkyCity Entertainment Group's SKC.NZ earnings from the New Zealand International Convention Centre (NZICC) to start from late fiscal 2026

** Casino operator on Friday said it would seek damages from Fletcher Building FBU.NZ to cover losses incurred by delays in NZICC's completion, also expects venue to open in February 2026

** Morningstar says SkyCity's potential claim of over NZ$330 million ($198.03 million) in damages adds upside for co, also thinks the case will be settled out of court for an immaterial amount

** Morningstar also sees capital intensity for SkyCity to ease materially from FY26, notes NZICC is the last of co's major projects to be completed

** Investment research firm retains fair value estimate of NZ$2.8

** SkyCity down 35.2% so far this year, as of last close

($1 = 1.6664 New Zealand dollars)

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

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