How shares may react after SkyCity’s (ASX:SKC) FY21 earnings guidance

Summary

  • SkyCity Entertainment Group (ASX:SKC) provided its earnings guidance for FY21 on the back of “stronger than expected trading”.
  • The company expects earnings before interest, tax, depreciation, and amortisation (EBITDA) in the range of AU$247 million to AU$253 million.
  • SkyCity expects the net profit after tax (NPAT) between AU$84 million and AU$88 million.

SkyCity Entertainment Group Ltd (ASX:SKC) on Friday provided its earnings guidance for FY21 on the back of “stronger than expected trading”. As a result, the company expects earnings before interest, tax, depreciation, and amortization (EBITDA) in the range of AU$247 million to AU$253 million. It also anticipates the net profit after tax (NPAT) between AU$84 million and AU$88 million.

The gambling and entertainment company expects to meet its financial convents for the 30 June 2021 testing period. SkyCity also expects to pay a final dividend in September.

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Source: © Herrbullermann  | Megapixl.com

What company says

SkyCity said that it has continued to see strong performance from its local gaming businesses in New Zealand, particularly electronic gaming machines. The consistent performances from both SkyCity Adelaide post opening of the expansion from December 2020 and the offshore online casino (SkyCity Malta) also helped.

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Even as the international border closures are impacting the company’s tourism-related businesses in New Zealand and South Australia, both may benefit from positive domestic tourism, particularly on weekend and holiday peaks.

The company also said that it could not currently provide guidance for reported statutory results because of “ongoing uncertainty” arising from the timing of the New Zealand International Convention Centre reinstatement and potential other accounting adjustments required as part of the financial year 2021 results.

Source: ©Miflippo  | Megapixl.com

Stock performance

On Thursday, 10 June 2021, the shares closed at AU$3.31, up 1.30%, as against the previous closing on Wednesday, 9 June 2021. SkyCity competes with Treasury Wine Estates Ltd (ASX:TWE) and Metcash Ltd (ASX:MTS, Woolworths Group Ltd (ASX:WOW), Coles Group Ltd (ASX:COL), among others in the consumer sector.

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