SKC - SkyCity

[Waltzing]

This stock went up today ... like champagne popping ...

Gosh ... not really a green shoot stock though....

[Waltzing]

SKC has AA...GREED to a fine of 67M....

its now a departments of the minstry of health... wait till they track your facial skin texture to determine if your had one to many drinks... anyone with pink cheeks will be required to take a breath test at the BAR!!!!

https://www.nzx.com/announcements/431290

what ever happened to getting totally legs less in AUS....

anyone got any old footage of the CUP back in the 60's?

As a totally unrelated comment that should be over on culture i remember that after any regatta in syndney and amsterdam in the early 80's the PUB was the next stop...

Now they go home ... not even a cafe STOP!!!
 
suppose its all the DRUG testing... strong coffee..

[Left Field]

Bit of a Downgrade for holders to digest..... and no Divvie for a year or two.

https://www.nzx.com/announcements/432366

SkyCity Entertainment Group Limited (SkyCity) advises that it has updated its earnings guidance for FY24. SkyCity now expects underlying Group EBITDA for FY24 of between $280 million and $285 million and underlying Group NPAT for FY24 of between $120 million and $125 million (1).
 
 This compares to previous guidance of underlying Group EBITDA for FY24 of between NZ$290 million and NZ$310 million and underlying Group NPAT for FY24 of between NZ$125 million and NZ$135 million.
 
 The key drivers of this change in guidance for FY24 are:
 
 - the ongoing challenging economic environment impacting customer spend (although visitation numbers across all sites remain strong);
 - a further delay in the opening of the Horizon Hotel (now expected in August 2024) due to delayed completion of works by the contractor to the project, which impacts hotel, food and beverage and gaming contributions across the Auckland precinct; and
 - a potential increase in Adelaide casino duty expense (for FY24) following the South Australian Court of Appeal's ruling on the interpretation of the relevant provisions in the Adelaide Casino Duty Agreement regarding the treatment of loyalty points, as announced by SkyCity on 22 February 2024.

[winner (n)]

 No divie for a while will shock some

[Waltzing]

pretty good result really... could have been a lot worse... NO DIV was in always on the cards... Dividends this year for a lot of stocks in entertainment could be under pressure and for some retail...
 
Not related to this stock but..

some old fashioned businesses are under pressure... some lovely cinemas are empty compared to pre covid in the central WAKATOO.

[Waltzing]

No shock Winner. it was written...

damn thing bounced back... now under a dollar would be good....

[Left Field]

No shock Winner. it was written...
damn thing bounced back... now under a dollar would be good....

A bit more drama posted late this afternoon

https://www.nzx.com/announcements/432427

As a consequence of the High Court's decision, the High Court will conduct a full hearing of the appeal from the decision of the Court of Appeal later this year. The outcome of that decision could be that the High Court confirms the interpretation of the Agreement adopted by the Court of Appeal, or determines a different interpretation, such as that put by SkyCity Adelaide before the Court of Appeal.
 
 The question of the applicable interest rate for outstanding duty, and whether the contractual interest provision in the Casino Duty Agreement is enforceable, remains to be determined by a single Judge of the Supreme Court at a later date. As previously announced, if the Supreme Court's decision on the applicable interest rate is unfavourable to SkyCity Adelaide and SkyCity Adelaide is also unsuccessful in its appeal of the substantive issue to the High Court of Australia, SkyCity Adelaide may be obliged to pay penalty interest on the additional casino duty, which could be up to around A$22.8 million (calculated as at 31 May 2024). If however SkyCity Adelaide is successful in its appeal of the substantive issue to the High Court (but unsuccessful in its application to the Supreme Court regarding penalty interest) then penalty interest may still be applicable but would be reduced to an amount of up to around A$2.4 million (calculated as at 31 May 2024).

[Waltzing]

Slightly off topic...

im pretty sure it will be pay up.... we are in one of those universes where every 8 to 10 years sell your portfolio becuase just around the corner is a titanic event like a global crisis or a new version of a world war ...

plague or volcanic eruption... wait till the sun ejects a huge cronial mass ejection the size of which the solar system has never seen and blasts the plant...

next someone is going to find the Arc of the C... and lead an army to save the west ...

 or  of course  https://science.nasa.gov/solar-system/asteroids/apophis/

could come closer than predicted and .... well its not something one wants to think about...

and since no one actually reads this forum... its a bit like doing a LAB really..

https://www.interest.co.nz/business/128122/skycity-entertainment-group-says-order-preserve-headroom-its-financing-covenants-it

[Waltzing]

creaping up again... you would think it would stay down for a while....

[Left Field]

NPAT Taking a hit....... ouch for holders.......

https://api.nzx.com/public/announcement/436605/attachment/425272/436605-425272.pdf

[Basil]

Very pleased I have ruled this out long ago as an investment opportunity on ESG grounds.  This is pure and simple, "weapons grade" social destruction in terms of the harm it does in society with gambling addiction.
Personally know one bloke who has lost over $1m at SKC when he was addicted.  I'd be quite pleased if they went broke.  I see they have just issued U.S.$150m in 7 year USPP notes.  Gosh, what could possibly go wrong there lol

[Left Field]

Totally agree Basil...... an easy personal investment decision to make..... shun the gambling industry.... does more harm than good.

[Waltzing]

its on the move again... slap from the courts...

auckland confer centre should be a go if you want to hold a big confer safe from nuclear dust in europe ...

now your all ready for the cup is Nov 5 ...

start studying the form ... wonder how many times an outsider has won ..

[Waltzing]

new convention hut finally going to be useful?


https://www.nzherald.co.nz/business/first-look-inside-skycitys-international-convention-centre-with-chairman-julian-cook-new-ceo/Z3DTFPJURJBE3MEGWW2UMQHWRY

[KW]

A law firm is considering bring a case against SkyCity's former execs over Adelaide money laundering
A litigation funder is considering bringing a legal action against former SkyCity directors and executives over breaches of money laundering laws at the Adelaide Casino.

Litigation Capital Management is considering bringing legal action against former SkyCity directors and officers relating to the company's failure to implement adequate money laundering controls at the Adelaide Casino, leading to the group copping a $67m fine earlier this year.
LCM is considering launching a statutory derivative action against the directors and officers, and is advertising for SkyCity shareholders to join its claim.
A statutory derivative action is similar to a class action, however differs in that any money awarded if the matter is successful flows back to the company.
SkyCity was hit with a $67m fine by the Federal Court in May this year, after admitting to "serious breaches" of anti-money laundering and counter terrorism financing laws.
LCM said it will allege in its proceeding that SkyCity's leaders failed in their duties.
"The proceeding will allege that directors and officers of SkyCity Adelaide breached their statutory and fiduciary duties and/or were negligent by reason of their failure to implement adequate anti-money laundering/counterterrorism financing programs, their involvement in high-risk customer decisions and systemic compliance failures at SkyCity's Adelaide casino," LCM says in an email.
"This proceeding would be supported by LCM (or a related entity), a third-party litigation funder.
"If the claim is successful and financial compensation is recovered from the proposed defendants, legal costs payable and a funding commission for the litigation funder will be deducted from the recoveries, with the remainder paid to SkyCity for the benefit of its shareholders.
"The costs deducted from the recoveries will not exceed the amount of compensation to which the SkyCity may become entitled."