AUSTRALASIA 42
NEW ZEALAND
SKYCITY goes green SKYCITY Entertainment has launched a green fund with the intent for its New Zealand properties to become carbon neutral this year and those in Australia from 2020.
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t’s one of the first major New Zealand companies to go carbon neutral and its initiatives will put it at the forefront of operators in Asia when it comes to environmental initiatives. SKYCITY said it’s fund will be paid for via an internal carbon levy on all emissions amounting to $25 per ton of carbon produced. Funds from SKYCITY’s green fund will be used to offset its carbon footprint to net zero by investing in emission reduction projects such as wind and solar farms. The green fund will also accrue and invest in projects identified and developed by SKYCITY employees to reduce SKYCITY’s carbon emissions in accordance with its Science Based Targets, set in 2019. “Climate change is recognised as one of the biggest risks facing the planet, and we have a responsibility to our investors and communities to take action and play our part,” CEO Graeme Stephens said. “The fund enables us to proactively allocate capital to projects that will meaningfully reduce our emissions over time, whether that be new technology, LED lighting or upgrading particular facilities.” The New Zealand-listed operator is also encouraging its staff to participate, with the company planning to match their offset dollar-for-dollar. Already members of SKYCITY’s board and executive team, including Chairman Rob Campbell, CSR board committee chair Sue Suckling and Stephens, have gone carbon neutral. SKYCITY’s Environment Manager Courtney Simpson says the climate change strategy is ambitious, but achievable, and follows international best practice. “Over the past year we have been working incredibly hard to measure our carbon footprint, understand our impact, set science-based targets, and develop the plan as to how, as a company, we can ensure we are taking action to limit global warming to below 2 degrees. “Already as a business we’ve managed to cut our emissions by 8 percent but this is
Asia Gaming Briefings | March 2019
just the start. By putting a price on carbon, we are adding a hard cost to the bottom line, giving a clear incentive to every SKYCITY team member to reduce emissions across the business,” she said. SKYCITY, whose flagship property is in Auckland, reported strong results for the first half of the fiscal 2019 year, though warned that it has seen a slowdown going into the second half. Normalized net profit after tax was up 11.4 percent, driven by a solid performance in its Auckland operations and significantly improved turnover in its International Business. NPAT was NZ$97 million (US$64.3 million) and normalized Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) was up 10.5 percent to NZ$189.1million, with 73 percent of this being earned from the company’s Auckland operations. The company reported a lower win rate (0.98 percent compared to the theoretical win rate of 1.35 percent) in its International Business which with certain other adjustments meant reported NPAT was down 11.4 percent and reported EBITDA was down 8.2 percent For the full year, ending June 30, the company expects growth in normalized EBITDA of 5 percent, with both the domestic and international business facing more challenges. The slowdown in China’s economy is expected to hurt VIP business. The company noted that revenue from electronic gaming machines had been particularly positive in the first half, contributing to record local gaming revenue in Auckland of $219.6 million. EGM revenue was up 7.2 percent with table revenue up 4.8 percent. EGM performance was also strong in Hamilton, where the company has introduced new products and changed the floor layout. As a result, it has applied to the Gambling Commission to change the product mix losing three tables in exchange for 60 EGMs. SKYCITY also has a resort in Queenstown and in Adelaide Australia. It recently announced the sale of its Darwin casino to Delaware North.
