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  • »SkyCity Reveals Details on Adelaide Casino Redevelopment


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SkyCity Reveals More About its Adelaide Casino Redevelopment

SkyCity Entertainment Group has revealed details of its much anticipated Adelaide Casino redevelopment, which is set to include Australia’s first brewery in a casino.

Casino Beats reports that the redevelopment, dubbed The District, is a “key pillar” of the group’s ongoing $330 million Adelaide transformation, which hopes to develop a “world class” integrated casino and entertainment precinct.

The District hopes to bring together all venues on level one in the current Heritage Building, incorporating a poker zone, sports bar, the Pirate Life microbrewery, live entertainment and bistro.

The District venue manager Jarrad Anderson said: “Aussies have always had a strong affiliation with good beer and places to drink it…live music, great food and watching sport is also part of our culture. Being able to find it all under one roof is our point of difference.”

The District at SkyCity will feature a mezzanine level, allowing increased capacity for live entertainment, where customers can enjoy Pirate Life beers tailor-made for the venue.

Pirate Life was founded in Adelaide in 2014 by Michael Cameron, Jack Cameron and Jared Proudfoot.

Proudfoot, Pirate Life co-founder and brewing director, said there’s a lot to be excited about as the first series of Pirate Life beers made exclusively for The District are introduced.

“Our first brew is the District Draught, brewed with Pale and Munich Malt, the District Draught is fresh, familiar and ready to session,” he commented.

“A hop free boil means ultra-low bitterness, with notes of citrus. It pours golden straw, with a generous pillow of foam. Expect aromas biscuit malt and nashi pear, with subtle notes of lime. The palate is malty, with a mild body and a clean, moreish finish.”

Other significant transformation works undertaken in the Heritage Building include repainting of the Marble Hall for the first time since the Adelaide Casino opened in 1985 and refurbishment and extension of the Baccarat Pavilion.

SkyCity Bullish Amid Better Than Expected Financial Figures

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SkyCity Entertainment Group has released its financial year results, with its result at the top end of its guidance range, despite the COVID-19 pandemic and fire to the New Zealand International Convention Centre in late 2019.

Kalkin Media reported in September that total reported revenue was up 36.8 per cent at the New Zealand based operator, however, normalised revenue fell 34.3 per cent, year-on-year.

Sky’s online casino witnessed substantial growth during the reporting period, with Sky share prices up almost four per cent on the back of their yearly results.

More than 35,000 customer registrations have been noted on SkyCity’s online casino, which has been delivering a positive EBITDA since April 2020.

SkyCity had a strong balance shot post the implementation of its funding plan, with it now in a position to withstand any additional downside shocks.

It’s Adelaide expansion is also reported to be well on track, expected to open in late 2020.

At its New Zealand properties, domestic businesses retrieved at a faster rate than expected between June 1 and August 11.

Positive local gaming activity was noted during the period, with Auckland returning to, and Hamilton beyond their pre-COVID-19 levels.

Electronic gaming machine performance was especially strong across Auckland and Hamilton, with significant improvement noted in operating margins.

Nearly 15,000 new customer registrations were noted at Sky’s online casino for the three months to 31 August, it said.

New Zealand-based casino operator SkyCity Entertainment Group has reopened its gaming, entertainment and hospitality facilities in Adelaide and also revealed that its recent NZ$180 million (US$115.3 million) share placing drew strong support from investors.

iGaming Business reports that consistent with its approach when re-opening casino properties in New Zealand, SkyCity’s Adelaide Casino will recommence operations in a staged manner, with reduced operating hours.

The casino had been closed for a number of months due to the COVID-19 pandemic.

Other measures that will be put in place at the property include only permitting active members of its rewards programme access to the casino, with capacity subject to a maximum of one customer per two square metres at any time.

This will mean that up to 2,200 people, including patrons and staff, will be allowed inside the property.

SkyCity will also implement distancing measures, such as limiting the number of players at each gaming table, as well as introduce enhanced hygiene protocols throughout the facility.

Most food and beverage outlets will reopen at the casino, while SkyCity will put in place a new system to support contact tracing, primarily through surveillance, guest registers, identity scanning and loyalty card use.

The reopening was made possible after South Australia’s government moved to the third and final stage of reopening the state’s economy amid the relaxation of COVID-19 restrictions.

SkyCity reopens Adelaide Casino as Covid-19 measures eased https://t.co/5IZO62UP90pic.twitter.com/YyncZXlSS7

— iGB (@iGamingBusiness) June 30, 2020

SkyCity enters into massive equity raising measures

New Zealand-based casino company SkyCity Entertainment Group has launched an A$215 million (NZ$230 million) equity raising to strengthen its balance sheet after shutting down during the coronavirus pandemic.

Perth Now reported in June that SkyCity board chairman Rob Campbell said despite encouraging trading since reopening in New Zealand, the outlook remains uncertain as the company adjusts to the new social and economic settings.

SkyCity said it had secured waivers from its debt covenants through to mid-2021 as well as NZ$160 million in new bank funding, which was contingent on SkyCity raising NZ$200 million in net funding.

“The equity raising will ensure that SkyCity remains appropriately capitalised and provides certainty to allow for the delivery of the strategic plan for the business,” Mr Campbell said.

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The equity raising consists of a fully underwritten NS$180 million institutional placement and a NZ$50 million share purchase plan.

The institutional placement will be at NZ$2.50, a 6.4 per cent discount on its last closing price of NZ$2.67 on the NZX.

SkyCity said its New Zealand properties reopened last month, except for its Queenstown wharf casino, while it expected Adelaide Casino to reopen later this month.

A NZ$330 million expansion of the Adelaide Casino is still on track to be completed by October.

SkyCity said it has received an initial NZ$105 million insurance payment for the New Zealand International Convention Centre project in Auckland, which was hit by a devastating fire in October, after a worker apparently left an unattended blowtorch on the roof.

SkyCity said the NZ government had granted it a two-year extension on the NZ$750 million project, to January 2, 2025.

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SkyCity announces more job cuts amid the coronavirus pandemic

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SkyCity has announced that it has let go 700 more staff members amid the coronavirus pandemic.

New Zealand is one of the countries that identified and contained COVID-19 most quickly and effectively.

Its response to the pandemic was swift and thorough, but hasn’t been enough to spare more job losses at the casino, which has venues in Auckland, Christchurch and Queenstown.

Casino Aus reported in May that New Zealand did so well at the restrictive level 3 recently that officials this week moved to Level 2.

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This means New Zealanders can resume most of their regular activities.