Q4 2026 SkyCity Entertainment Group Ltd Earnings Call

August 19, 2026

Operator: Good day and thank you for standing by. Welcome to SkyCity Entertainment Group full year 2026 results conference call. At this time, all participants are in the listen only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Mr. Jason Walbridge, Chief Executive Officer of SkyCity Entertainment Group. Please go ahead.

Speaker #2: Good day, and thank you for standing by. Welcome to the SkyCity Entertainment Group full year 2026 results conference call. At this time, all participants are in listen-only mode.

Speaker #2: After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 1-1 on your telephone.

Speaker #2: You will then hear an automated message advising that your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded.

Speaker #2: And I'd like to hand the conference over to Mr. Jason Volvich, Chief Executive Officer of SkyCity Entertainment Group. Please go ahead.

Speaker #3: Good morning, everyone. I'm Jason Wolbert, Chief Executive Officer of SkyCity Entertainment Group. Welcome to SkyCity's presentation of our full-year results for the financial year 2026.

Jason Walbridge: Good morning, everyone. I am Jason Walbridge, Chief Executive Officer of SkyCity Entertainment Group. Welcome to SkyCity's presentation of our full year results for the financial year 2026 we announced to the NZX and ASX this morning. Before we begin, I would like to acknowledge the tangata whenua of our SkyCity sites, Ngāti Whātua Ōrākei, Waikato Tainui, and Ngāi Tahu, and acknowledge the Kaurna people, the traditional custodians of the land in Adelaide. With me today in Auckland is Blair Woodbury, our Chief Financial Officer, and Callum Mallett, our Chief Operating Officer. On the call today, we will be going through the full year 2026 financial results presentation, and there will be time for questions at the end of the presentation. Let us move to slide 5 for an overview of our FY26 results.

Speaker #3: We announce to the NZX and ASX this morning. Before we begin, I'd like to acknowledge the tangata whenua of our SkyCity sites: Ngāti Whātua Ōrākei, Waikato-Tainui, and Ngāi Tahu, and acknowledge the Kaurna people, the traditional custodians of the land in Adelaide.

Speaker #3: With me today in Auckland are Blair Woodbury, our Chief Financial Officer, and Kala Malet, our Chief Operating Officer. On the call today, we will be going through the full-year 2026 financial results presentation, and there will be time for questions at the end of the presentation.

Speaker #3: Let's move to slide 5 for an overview of our FY26 results. We've delivered on our earnings guidance provided in May of $181.6 million, which is down 22.3%, or $52.1 million, on last year.

Jason Walbridge: We have delivered on our earnings guidance provided in May of NZD 181.6 million, which is down 22.3% or NZD 52.1 million on last year. Reported EBITDA is NZD 120.5 million, down 44.2% or NZD 95.6 million compared to last year due to several significant accounting adjustments which Blair will talk to later in the presentation. Visitation remains strong across the group, with the small reduction due in part to changes in the way we measure visitation and the introduction of Carded Play. Revenue was flat on last year. However, total gaming revenue is down 5.9% or NZD 34.7 million with lower revenue across both gaming machines and tables. The lower gaming revenue is predominantly due to the introduction of Carded Play across our New Zealand casinos that went live in July 2025 and is in line with our expectations and guidance.

Jason Walbridge: We have delivered on our earnings guidance provided in May of NZD 181.6 million, which is down 22.3% or NZD 52.1 million on last year. Reported EBITDA is NZD 120.5 million, down 44.2% or NZD 95.6 million compared to last year due to several significant accounting adjustments which Blair will talk to later in the presentation. Visitation remains strong across the group, with the small reduction due in part to changes in the way we measure visitation and the introduction of carded play. Revenue was flat on last year. However, total gaming revenue is down 5.9% or NZD 34.7 million with lower revenue across both gaming machines and tables. The lower gaming revenue is predominantly due to the introduction of carded play across our New Zealand casinos that went live in July 2025 and is in line with our expectations and guidance.

Speaker #3: Reported EBITDA is $120.5 million, down 44.2%, or $95.6 million, compared to last year, due to several significant accounting adjustments, which Blair will talk to later in the presentation.

Speaker #3: Visitation remains strong across the group, with the small reduction due in part to changes in the way we measure visitation and the introduction of card-to-play.

Speaker #3: Revenue is flat on last year. However, total gaming revenue is down 5.9%, or $34.7 million, with lower revenue across both gaming machines and tables.

Speaker #3: The lower gaming revenue is predominantly due to the introduction of card-to-play across our New Zealand casinos, which went live in July 2025, and is in line with our expectations and guidance.

Speaker #3: We also experienced a lower level of activity in premium play compared to the prior period. Growth in our non-gaming revenue largely offset the lower gaming revenue, with the opening of the NZICC in February now included in revenue, plus growth in our hotels and food and beverage operations, particularly in Auckland.

Jason Walbridge: We also experienced a lower level of activity in premium play compared to the prior period. Growth in our non-gaming revenue largely offset the lower gaming revenue with the opening of the NZICC in February, now included in revenue, plus growth in our hotels and food and beverage operations, particularly in Auckland. Costs increased over the year due to the opening of the NZICC, investment in our online operations, higher labor costs and ICT investment due in part to the implementation of Carded Play. We have seen a significant improvement in the cash flow from our operations, noting the prior period included one-off penalty and interest duty payments. We are responding to this change in our operating environment, particularly in Auckland and Adelaide, with a significant reset of our operating model, which I will talk to shortly. Turning now to slide 6.

Jason Walbridge: We also experienced a lower level of activity in premium play compared to the prior period. Growth in our non-gaming revenue largely offset the lower gaming revenue with the opening of the NZICC in February, now included in revenue, plus growth in our hotels and food and beverage operations, particularly in Auckland. Costs increased over the year due to the opening of the NZICC, investment in our online operations, higher labor costs and ICT investment due in part to the implementation of carded play. We have seen a significant improvement in the cash flow from our operations, noting the prior period included one-off penalty and interest duty payments. We are responding to this change in our operating environment, particularly in Auckland and Adelaide, with a significant reset of our operating model, which I will talk to shortly. Turning now to slide six.

Speaker #3: Costs increased over the year due to the opening of the NZICC, investment in our online operations, and higher labor costs in ICT investment, due in part to the implementation of card-to-play.

Speaker #3: We have seen a significant improvement in the cash flow from our operations, noting the prior period included one-off penalty and interest duty payments. We are responding to this change in our operating environment, particularly in Auckland and Adelaide, with a significant reset of our operating model, which I will talk to shortly.

Speaker #3: Turning now to slide 6. In August last year, as part of the equity raise, we made a number of commitments to our shareholders, and we have taken important steps and made meaningful progress this year towards those.

Jason Walbridge: In August last year, as part of the equity raise, we made a number of commitments to our shareholders, and we have taken important steps and made meaningful progress this year towards those. When we released our interim results for FY26 in February, we were still on track to meet the full year guidance we had provided in August 2025 and were starting to see signs of improving consumer spending levels in New Zealand. However, the Middle East conflict in early March and the resulting higher fuel prices had an immediate and significant impact on consumer spending, and we saw the earnings impact in March and April, triggering the revised guidance we provided in May. We have estimated the EBITDA impact in Q4 FY26 was approximately NZD 20 million when compared to Q3. Pleasingly, both our Hamilton and Queenstown properties were not noticeably impacted by these factors.

Speaker #3: When we released our interim results for FY26 in February, we were still on track to meet the full-year guidance we had provided in August 2025, and were starting to see signs of improving consumer spending levels in New Zealand.

Speaker #3: However, the Middle East conflict in early March and the resulting higher fuel prices had an immediate and significant impact on consumer spending, and we saw the earnings impact in March and April, triggering the revised guidance we provided in May.

Speaker #3: We have estimated the EBITDA impact in the fourth quarter, FY26, was approximately $20 million, when compared to the third quarter. Pleasingly, both our Hamilton and Queenstown properties were not noticeably impacted by these factors.

Speaker #3: We are well on track with our asset monetization program and expect to exceed our target, with gross proceeds of $275 to $300 million expected by December 2026.

Jason Walbridge: We are well on track with our asset monetization program and expect to exceed our target with gross proceeds of NZD 275 to 300 million expected by December 2026. We have identified further cost-out initiatives to deliver NZD 30 million in realized benefits in the current financial year, increasing to NZD 70 million in FY28. I will talk more to this shortly. We successfully implemented Carded Play across our New Zealand casinos in July 2025, and the financial impact for the year was in line with the NZD 20 to 30 million EBITDA guidance we provided to the market. The NZICC opened in February and has held 141 events, attracting 100,000 visitations over the balance of the year.

Speaker #3: We have identified further cost-out initiatives to deliver $30 million in realized benefits in the current financial year, increasing to $70 million in FY28.

Speaker #3: I will talk more to this shortly. We successfully implemented card-to-play across our New Zealand casinos in July 2025, and the financial impact for the year was in line with the $20 to $30 million EBITDA guidance we provided to the market.

Speaker #3: The NZICC opened in February and has held 141 events, attracting 100,000 visitations over the balance of the year. Pleasingly, the feedback from visitors to the convention center has been very positive.

Jason Walbridge: Pleasingly, the feedback from visitors to the convention center has been very positive. We have reached a non-binding agreement with our Adelaide regulator for all the outstanding regulatory matters, which includes a fine of AUD 21 million payable over two years. As regulatory matters near resolution and the B3 program progresses towards completion, we are now undertaking a strategic review of the Adelaide business. Our key priorities for FY27 are resetting the balance sheet through our asset monetization program, introducing a new operating model to reduce costs, securing a future path forward for Adelaide through the CBS settlement, B3 program, and strategic review, as well as entering a new and complementary gaming market in New Zealand with the regulation of online gambling. I will now talk to each of these in more detail.

Jason Walbridge: Pleasingly, the feedback from visitors to the convention center has been very positive. We have reached a non-binding agreement with our Adelaide regulator for all the outstanding regulatory matters, which includes a fine of AUD 21 million payable over two years. As regulatory matters near resolution and the B3 program progresses towards completion, we are now undertaking a strategic review of the Adelaide business. Our key priorities for FY 2027 are resetting the balance sheet through our asset monetization program, introducing a new operating model to reduce costs, securing a future path forward for Adelaide through the CBS settlement, B3 program, and strategic review, as well as entering a new and complementary gaming market in New Zealand with the regulation of online gambling. I will now talk to each of these in more detail.

Speaker #3: We have reached a non-binding agreement with our Adelaide regulator for all the outstanding regulatory matters, which includes a fine of AUD $21 million, payable over two years.

Speaker #3: As regulatory matters near resolution and the B3 program progresses towards completion, we are now undertaking a strategic review of the Adelaide business. Our key priorities for FY27 are resetting the balance sheet through our asset monetization program, introducing a new operating model to reduce costs, securing a future path forward for Adelaide through the CBS settlement, B3 program, and strategic review, as well as entering a new and complementary gaming market in New Zealand with the regulation of online gambling.

Speaker #3: I will now talk to each of these in more detail. As I mentioned before, we're well advanced with our asset monetization program and expect to deliver gross sales proceeds of between $275 million and $300 million by December this year.

Jason Walbridge: As I mentioned before, we are well advanced with our asset monetization program and expect to deliver gross sales proceeds of between NZD 275 million and NZD 300 million by December this year, assuming the current non-binding heads of agreement for the sale of The Grand Hotel settles. We recently confirmed the unconditional sale of the commercial office properties at 99 Albert Street and Victoria Street for NZD 74.5 million, with settlement due in September 2026. The purchaser is New Zealand-based Mainland Capital and Russell Property Group Joint Venture. Based on discussions with

Speaker #3: Assuming the current non-binding heads of agreement for the sale of the Grand Hotel settles. We recently confirmed the unconditional sale of the commercial office properties at 99 Albert Street and Victoria Street for $74.5 million, with settlement due in September 2026.

Speaker #3: The purchaser is the New Zealand-based Mainland Capital and Russell Property Group joint venture. Based on discussions, please remain on the line. Your conference will resume shortly.

Operator: Please remain on the line. Your conference will resume shortly. Ladies and gentlemen, please remain on the line. Your conference will resume shortly. Ladies and gentlemen, please remain on the line. Your conference will resume shortly. Ladies and gentlemen, please remain on the line. Your conference will resume shortly. The speakers are now on. Please continue.

Speaker #3: Ladies and gentlemen, please remain on the line. Your conference will resume shortly. Ladies and gentlemen, please remain on the line. Your conference will resume shortly.

Speaker #3: And gentlemen, please remain on the line. Your conference will resume shortly. The speakers are now on. Please continue. I'll start again on slide 7 for asset monetization.

Jason Walbridge: I will start again on slide seven for asset monetization. As I mentioned before, we are well advanced with our asset monetization program and expect to deliver gross sales proceeds of between NZD 275 million and NZD 300 million by December 2026, assuming the current non-binding heads of agreement for the sale of The Grand settles. We recently confirmed the unconditional sale of the commercial office properties at 99 Albert Street and Victoria Street for NZD 74.5 million, with settlement due in September 2026. The purchaser is New Zealand-based Mainland Capital and Russell Property Group Joint Venture. Based on the conversations we have had with them throughout the process and their plans for the properties, I am confident they are going to be a great neighbor for the Auckland precinct. We are well advanced with the sale of The Grand Hotel and in due diligence with an exclusive bidder.

Speaker #3: As I mentioned before, we're well advanced with our asset monetization program and expect to deliver gross sales proceeds of between $275 million and $300 million by December 2026, assuming the current non-binding heads of agreement for the sale of the Grand settles.

Speaker #3: We recently confirmed the unconditional sale of the commercial office properties at 99 Albert Street and Victoria Street for $74.5 million, with settlement due in September 2026.

Speaker #3: The purchaser is the New Zealand-based Mainland Capital and Russell Property Group joint venture. Based on the conversations we've had with them throughout the process and their plans for the properties, I'm confident they're going to be a great neighbor for the Auckland precinct.

Speaker #3: We are well advanced with the sale of the Grand Hotel and are in due diligence with an exclusive bidder. The sale proceeds from both transactions will be applied to reducing our debt levels, and we expect to be below our targeted level of 2x debt to EBITDA at the end of FY27.

Jason Walbridge: The sale proceeds of both transactions will be applied to reducing our debt levels, and we expect to be below our targeted level of 2x debt to EBITDA at the end of FY27, and this will be before any costs associated with an online license. This is also consistent with the commitments we made to S&P at the time of the capital raise regarding the steps needed to remove the negative outlook we currently have on our credit rating. Turning now to slide eight and our cost out program. Over recent years, we have seen a structural change in the revenue and earnings from our land-based operations, driven primarily by the change in regulatory settings across the gaming industry. The regulation of online casino gambling in New Zealand is also likely to bring more change, and we want to participate in this important opportunity.

Speaker #3: And this will be before any costs associated with an online license. This is also consistent with the commitments we made to S&P at the time of the capital raise regarding the steps needed to remove the negative outlook we currently have on our credit rating.

Speaker #3: Turning now to slide 8 and our cost-out program. Over recent years, we've seen a structural change in the revenue and earnings from our land-based operations.

Speaker #3: Driven primarily by the change in regulatory settings across the gaming industry. The regulation of online casino gambling in New Zealand is also likely to bring more change, and we want to participate in this important opportunity.

Speaker #3: Consequently, we're undertaking a group-wide reset of our operating model to become a simpler, smarter, and more connected business that has fewer layers, clearer accountability, and makes decisions faster.

Jason Walbridge: Consequently, we are undertaking a group-wide reset of our operating model to become a simpler, smarter, more connected business that has fewer layers, clearer accountability, and makes decisions faster. We are targeting realized benefits of NZD 30 million in FY27, increasing to NZD 70 million in FY28, and have a clear line of sight on where these benefits are coming from. Our organizational redesign in New Zealand is complete, and we are now moving quickly into implementation. Resetting our business for the future means less roles across parts of the business, and we have commenced a consultation process that potentially impacts between 200 and 250 of our employees, predominantly across the New Zealand corporate and back office functions. No final decisions have been made at this stage, and we are actively engaging with everyone involved in these proposals.

Speaker #3: We're targeting realized benefits of $30 million in FY27, increasing to $70 million in FY28, and have a clear line of sight on where these benefits are coming from.

Speaker #3: Our organizational redesign in New Zealand is complete, and we're now moving quickly into implementation. Resetting our business for the future means fewer roles across parts of the business, and we have commenced the consultation process that potentially impacts between 200 and 250 of our employees, predominantly across the New Zealand corporate and back office functions.

Speaker #3: No final decisions have been made at this stage, and we are actively engaging with everyone involved in these proposals. To increase visitation and grow our revenue, as well as to continue reducing our cost base beyond the initial reset, we have identified a large number of initiatives that are being assessed. We are moving at pace to implement those that will deliver the most benefit.

Jason Walbridge: To increase visitation, grow our revenue, as well as continuing to reduce our cost base beyond the initial reset, we have identified a large number of initiatives that are being assessed and are moving at pace to implement those that will deliver more benefit. Advances in technology, particularly in AI, will allow us to speed up current manual processes, making us more efficient, and importantly, shift us to being more digitally driven as an organization, solving problems using technology rather than manually. Our investment in technology will be disciplined and measured and focused on real tangible benefits for our employees, customers, and financial performance. Our future operating model sees us with two New Zealand franchises, land and online, with Adelaide operating more as a standalone business. Turning now to Slide 9 and Adelaide.

Speaker #3: Advances in technology, particularly in AI, will allow us to speed up current manual processes, making us more efficient and, importantly, shift us to being more digitally driven as an organization—solving problems using technology rather than manually.

Speaker #3: Our investment in technology will be disciplined and measured, and focused on real, tangible benefits for our employees, customers, and financial performance. Our future operating model sees us with two New Zealand franchises, Land and Online, with Adelaide operating more as a standalone business.

Speaker #3: Turning now to slide 9 and Adelaide. We have signed a non-binding heads of agreement with CBS, our regulator in Adelaide, that, once formalized, will conclude their enforcement action following the Martin Independent Report.

Jason Walbridge: We have signed a non-binding heads of agreement with CBS, our regulator in Adelaide, that once formalized, will conclude their enforcement action following the Martin independent report. Included in their agreement is a fine of AUD 21 million payable in three equal installments over two years, with the first payment due once we have finalized the agreement. We also now have more clarity on the operating and governance model and the regulatory framework that is required in Adelaide going forward. These enhanced governance, compliance, and operational commitments will be implemented by July next year, and the independent board and new operating model, seeing the business operate more standalone, will be in place by January 2028.

Speaker #3: Included in their agreement is a fine of $21 million Australian dollars, payable in three equal installments over two years, with the first payment due once we have finalized the agreement.

Speaker #3: We also now have more clarity on the operating and governance model and the regulatory framework that is required in Adelaide going forward. These enhanced governance, compliance, and operational commitments will be implemented by July next year.

Speaker #3: And the independent board and new operating model, seeing the business operate more standalone, will be in place by January 2028. This has been a long process, and I'd like to acknowledge and thank CBS for the constructive approach they have taken throughout these settlement discussions, and the tremendous amount of work done by our team involved in this matter.

Jason Walbridge: This has been a long process, and I would like to acknowledge and thank CBS for the constructive approach that they have taken throughout the settlement discussions and the tremendous amount of work done by our team involved in this matter. We have also been progressing the B3, or Building a Better Business program, are well advanced with this detailed and comprehensive remediation effort. We now expect this will be completed in early FY28, which reflects the pace of approvals along with casino system delays. An updated independent valuation has been undertaken of the Adelaide business and due in part to the changes outlined above, we have written down the carrying value of Adelaide by AUD 42.9 million.

Speaker #3: We've also been progressing the B3, or Building a Better Business Program, and are well advanced with this detailed and comprehensive remediation effort. We now expect this will be completed in early FY28, which reflects the pace of approvals along with casino system delays.

Speaker #3: An updated independent valuation has been undertaken of the Adelaide business and, due in part to the changes outlined above, we have written down the carrying value of Adelaide by $42.9 million Australian dollars.

Speaker #3: The key priorities for us going forward in Adelaide are finalizing the CBS agreement, progressing B3, and, with the clarity I spoke to earlier, the commencement of a strategic review of the business with advisors appointed.

Jason Walbridge: The key priorities for us going forward in Adelaide are finalizing the Consumer and Business Services agreement, progressing Building a Better Business, and with the clarity I spoke to earlier, the commencement of a strategic review of the business with advisors appointed. We are proud of the Adelaide business. It is a valuable part of the group. We are well-placed to be patient and deliberate about the path forward, and we expect to update the market during FY27 on the strategic review. Turning now to Slide 10 and our online opportunity and business. The New Zealand government has passed the legislation enabling the regulation of the New Zealand online casino gambling market, with the market expected to go live in the first half of 2027. This represents a very significant opportunity for SkyCity and one we are very keen to be part of.

Jason Walbridge: The key priorities for us going forward in Adelaide are finalizing the Consumer and Business Services agreement, progressing Building a Better Business, and with the clarity I spoke to earlier, the commencement of a strategic review of the business with advisors appointed. We are proud of the Adelaide business. It is a valuable part of the group. We are well-placed to be patient and deliberate about the path forward, and we expect to update the market during FY 2027 on the strategic review. Turning now to Slide 10 and our online opportunity and business. The New Zealand government has passed the legislation enabling the regulation of the New Zealand online casino gambling market, with the market expected to go live in the first half of 2027. This represents a very significant opportunity for SkyCity and one we are very keen to be part of.

Speaker #3: We are proud of the Adelaide business. It's a valuable part of the group, and we are well placed to be patient and deliberate about the path forward.

Speaker #3: And we expect to update the market during FY27 on the strategic review. Turning now to slide 10 and our online opportunity and business. The New Zealand government has passed legislation enabling the regulation of the New Zealand online casino gambling market, with the market expected to go live in the first half of 2027.

Speaker #3: This represents a very significant opportunity for SkyCity, and one we're very keen to be part of. The New Zealand Department of Internal Affairs released a paper looking at the current online gambling market, and I would recommend you have a read of it.

Jason Walbridge: The New Zealand Department of Internal Affairs released a paper looking at the current online gambling market, and I would recommend you have a read of it. It is available on their website. It provides an independent overview of the current size and structure of the market, including recent growth rates. It is based on analysis of customer spending information done by a firm called Dot Loves Data, utilizing data from one of New Zealand's big four banks. It provides detail on a very significant existing market of around NZD 1.4 billion, of which it appears casino gambling is a very large part. The analysis also highlights the very attractive growth rates in this market. We have submitted our expression of interest to participate in the upcoming license auction in September. Because of the auction structure, all successful bidders will pay the same price.

Speaker #3: It's available on their website. It provides an independent overview of the current size and structure of the market, including recent growth rates. It's based on analysis of customer spending information done by a firm called Dot Loves Data, utilizing data from one of New Zealand's Big Four banks.

Speaker #3: It provides detail on a very significant existing market of around $1.4 billion, of which it appears casino gambling is a very large part.

Speaker #3: The analysis also highlights the very attractive growth rates in this market. We have submitted our expression of interest to participate in the upcoming license auction in September.

Speaker #3: And because of the license and because of the auction structure, all successful bidders will pay the same price. A full application is required to be submitted by the successful bidders, and the regulator needs to approve detailed business plans and strategies relating to advertising, marketing, consumer protection, harm minimization, and regulatory compliance.

Jason Walbridge: A full application is required to be submitted by the successful bidders, and the regulator needs to approve detailed business plans and strategies relating to advertising, marketing, consumer protection, harm minimization, and regulatory compliance. Once these have been completed, licenses will be issued, and we expect that the market will open in early 2027, with operators going live no later than 1 June. We have provided further details on the legislation and regulations for the online casino gambling market in the appendix. We believe that we are well-positioned to successfully participate in what will be a very competitive market. Importantly, we have a disciplined approach to any financial investment required through the process with a phased investment pathway with specific gateways agreed with our board that have associated return targets in line with the return hurdles expected with this type of investment. Turning now to Slide 11.

Speaker #3: Once these have been completed, licenses will be issued, and we expect that the market will open in early 2027, with operators going live no later than the 1st of June.

Speaker #3: We have provided further details on the legislation and regulations for the online casino gambling market in the appendix. We believe that we're well positioned to successfully participate in what will be a very competitive market.

Speaker #3: Importantly, we have a disciplined approach to any financial investment required through the process, with a phased investment pathway featuring specific gateways agreed with our board. These gateways have associated return targets that are in line with the return hurdles expected for this type of investment.

Speaker #3: Turning now to slide 11. A major highlight for SkyCity this year was the opening of the NZICC on the 11th of February. Since then, we've hosted 141 events, with approximately 100,000 visitations over FY26.

Jason Walbridge: A major highlight for SkyCity this year was the opening of the NZICC on 11 February, and since then, we have hosted 141 events with approximately 100,000 visitations over FY26. We have received positive customer reviews and have already seen a number of events rebook. The pipeline for FY27 is encouraging, with approximately 350,000 visitations spread across more than 350 events. This includes major international conferences, with some of these outlined on the slide, and we look forward to welcoming these international visitors to Auckland. We had set ourselves a target of achieving break-even EBITDA for the NZICC on a standalone basis in FY27. We will get close to this, but due in part to the current economic conditions, we now expect to achieve this in FY28. We have started to see the benefits of the increased visitation across our Auckland precinct, particularly in our hotels and F&B outlets.

Jason Walbridge: A major highlight for SkyCity this year was the opening of the NZICC on 11 February 2026, and since then, we have hosted 141 events with approximately 100,000 visitations over FY 2026. We have received positive customer reviews and have already seen a number of events rebook. The pipeline for FY 2027 is encouraging, with approximately 350,000 visitations spread across more than 350 events. This includes major international conferences, with some of these outlined on the slide, and we look forward to welcoming these international visitors to Auckland. We had set ourselves a target of achieving break-even EBITDA for the NZICC on a standalone basis in FY 2027. We will get close to this, but due in part to the current economic conditions, we now expect to achieve this in FY28. We have started to see the benefits of the increased visitation across our Auckland precinct, particularly in our hotels and F&B outlets.

Speaker #3: We've received positive customer reviews and have already seen a number of events rebook. The pipeline for FY27 is encouraging, with approximately 350,000 visitations spread across more than 350 events.

Speaker #3: This includes major international conferences, with some of these outlined on the slide. And we look forward to welcoming these international visitors to Auckland. We had set ourselves a target of achieving break-even EBITDA for the NZICC on a standalone basis in FY27.

Speaker #3: We will get close to this, but due in part to the current economic conditions, we now expect to achieve this in FY28. We've started to see the benefits of the increased visitation across our Auckland precinct, particularly in our hotels and F&B outlets.

Speaker #3: The teams are doing an incredible amount of work analyzing the movements and behaviors of the visitors to the NZICC, and are looking to ensure we have the right offerings in place to maximize cross-precinct spend.

Jason Walbridge: The teams are doing an incredible amount of work analyzing the movements and behaviors of the visitors to the NZICC and are looking to ensure we have the right offerings in place to maximize cross-precinct spend. For example, the International Coral Reef Symposium was held in July, and attendees had a dedicated website that included a range of offers to take advantage of the many attractions available across the Auckland precinct. The NZICC is a fantastic addition to Auckland and New Zealand, and I am very confident it will deliver the growth in visitation, revenue, and earnings that we are expecting in the future. I will now hand over to Blair Woodbury to discuss the group financial results in more detail.

Speaker #3: For example, the Coral Reef Symposium was held in July, and attendees had a dedicated website that included a range of offers to take advantage of the many attractions available across the Auckland precinct.

Speaker #3: The NZICC is a fantastic addition to Auckland and New Zealand, and I'm very confident it will deliver the growth in visitation, revenue, and earnings that we are expecting in the future.

Speaker #3: I'll now hand over to Blair Woodbury to discuss the group financial results in more detail.

Speaker #1: Thanks, Jason, and good morning, everyone. Jason has spoken to the key aspects of the results, so I don't intend to go into too much detail.

Blair Woodbury: Thanks, Jason, and good morning, everyone. Jason has spoken to the key aspects of the results, so I do not intend to go into too much detail. As noted previously, the underlying EBITDA of NZD 181.6 million is within the updated guidance range we provided in May. This includes the impact of the conflict in the Middle East had on our business. Prior to this, we were well on track to meet the guidance we provided in August last year. FY26 has a number of non-operating items that I will step through shortly. The flat revenue we saw in FY26 when compared to FY25 masks the compositional change we saw with lower gaming revenue, driven by Carded Play impacts and lower consumer discretionary spend, offset by an increase in our non-gaming revenue, driven by the opening of the NZICC and higher accommodation in F&B revenues.

Blair Woodbury: Thanks, Jason, and good morning, everyone. Jason has spoken to the key aspects of the results, so I do not intend to go into too much detail. As noted previously, the underlying EBITDA of NZD 181.6 million is within the updated guidance range we provided in May. This includes the impact of the conflict in the Middle East had on our business. Prior to this, we were well on track to meet the guidance we provided in August last year. FY 2026 has a number of non-operating items that I will step through shortly. The flat revenue we saw in FY 2026 when compared to FY 2025 masks the compositional change we saw with lower gaming revenue, driven by Carded Play impacts and lower consumer discretionary spend, offset by an increase in our non-gaming revenue, driven by the opening of the NZICC and higher accommodation in F&B revenues.

Speaker #1: As noted previously, the underlying EBITDA of $181.6 million is within the updated guidance range we provided in May. This includes the impact the conflict in the Middle East has had on our business.

Speaker #1: Prior to this, we were well on track to meet the guidance we provided in August last year. FY26 has a number of non-operating items that I'll step through shortly.

Speaker #1: The flat revenue we saw in FY26 when compared to FY25 masks the compositional change we saw, with lower gaming revenue driven by carded play impacts and lower consumer discretionary spend. This was offset by an increase in our non-gaming revenue, driven by the opening of the NZICC and higher accommodation and food and beverage revenues.

Speaker #1: The team has been looking very closely at how we can return to growth in gaming revenue, particularly in Auckland, now that we have moved to carded play.

Blair Woodbury: The team has been looking very closely at how we can return to growth in gaming revenue, particularly in Auckland now that we have moved to Carded Play. Callum will talk to this shortly. The opening of the NZICC provides SkyCity with a significant increase in visitation to its Auckland precinct, and we are expecting non-gaming revenue will grow at a faster rate than gaming revenue. We are already seeing the benefits of its opening in February, particularly in our hotel and F&B operations. Underlying expenses were up NZD 50 million year on year, with NZD 14 million of the increase driven by the NZICC operations since February. We remain very focused on reducing our cost base to ensure we have the appropriate operating model in place for the future shape of our businesses.

Speaker #1: Callum will talk to this shortly. The opening of the NZICC provides SkyCity with a significant increase in visitation to its Auckland precinct, and we're expecting non-gaming revenue will grow at a faster rate than gaming revenue.

Speaker #1: We are already seeing the benefits of its opening in February, particularly in our hotel and food and beverage operations. Underlying expenses were up $50 million year on year, with $14 million of the increase driven by the NZICC operations since February.

Speaker #1: We remain very focused on reducing our cost base to ensure we have the appropriate operating model in place for the future shape of our businesses.

Speaker #1: This is a key area for me as CFO, and I'm very confident we will be able to realize the benefits we've identified. The work we have done with Alvarez & Marsal has been thorough and detailed, and has identified a wide range of initiatives that will increase visitation and revenue, as well as lower our costs.

Blair Woodbury: This is a key area for me as CFO, and I am very confident we will be able to realize the benefits we have identified. The work we have done with Alvarez & Marsal has been thorough, detailed, and has identified a wide range of initiatives that will increase visitation and revenue, as well as lower our costs. We will move at the appropriate pace to ensure we realize those benefits without compromising our compliance obligations and continuing to deliver an excellent customer experience. I will now talk to the non-operating items that impacted reported profit. You will see in this result we have several significant accounting adjustments, and I will talk briefly to some of the major ones. Derecognition of the tax assets. As flagged at the H1 results, we no longer recognize the potential tax benefit from accumulated losses.

Speaker #1: We will move at the appropriate pace to ensure we realize those benefits without compromising our compliance obligations, while continuing to deliver an excellent customer experience.

Speaker #1: I'll now talk to the non-operating items that impacted reported profit. You will see in these results we have several significant accounting adjustments, and I'll talk briefly to some of the major ones.

Speaker #1: De-recognition of the tax assets. As flagged at the first half results, we no longer recognize the potential tax benefit from accumulated losses. Whilst the 180 million odd of tax losses remain available to the business to use against future taxable profits, we deemed it prudent to remove these from the balance sheet so here you will see a 32 and a half million charge to the tax expense in the P&L.

Blair Woodbury: Whilst the 180 million odd of tax losses remain available to the business to use against future taxable profits, we deemed it prudent to remove these from the balance sheet. Here you will see a NZD 32.5 million charge to the tax expense in the P&L. As Jason touched on, we have taken a non-cash write-down, NZD 52.2 million of the carrying value of Adelaide. This write-down has been driven by a combination of revised forecasts reflecting current trading and future economic environment, the expected operating model changes as agreed with Consumer and Business Services, including Adelaide operating as a more standalone business, and increased CapEx, mainly on the railway building in Adelaide. Recognition of a NZD 23.9 million provision for the AUD 21 million fine agreed with Consumer and Business Services. The NZD 23.9 million Kiwi represents the net present value of the expected payments as required under accounting rules, with the fine payable in three equal installments.

Speaker #1: As Jason touched on, we've taken a non-cash write-down of NZ$52.2 million of the carrying value of Adelaide. This write-down has been driven by a combination of revised forecasts reflecting current trading and the future economic environment, the expected operating model changes as agreed with CBS—including Adelaide operating as a more standalone business—and increased capex, mainly on the railway building in Adelaide.

Speaker #1: Recognition of a $23.9 million provision for the $21 million Australian fine agreed with CBS. The $23.9 million Kiwi represents the net present value of the expected payments as required under accounting rules, with the fine payable in three equal installments.

Speaker #1: The unconditional sale of the Auckland commercial properties has triggered two impairments, reflecting the way we have historically accounted for those assets. For the SkyCity-occupied portion of 99 Albert Street, there is a write-down of $10.3 million.

Blair Woodbury: The unconditional sale of the Auckland commercial properties has triggered two impairments, reflecting the way we have historically accounted for those assets. For the SkyCity occupied portion of 99 Albert Street, there is a write-down of NZD 10.3 million, and we have recognized NZD 6.1 million of fair value losses on the remainder of the Auckland investment properties that we are selling. As part of our ongoing cost reduction in simplification activities, we disposed of certain offshore entities that had been used as part of previous financing structures. With their disposal, we have to release the cumulative foreign currency translation movements totaling NZD 55.3 million. Finally, on completion of the NZICC, we closed out the accounting for the deferred license. These accounting entries have the effect of creating a deferred tax asset of NZD 73 million, as the license was recognized against the NZICC assets.

Speaker #1: And we have recognized $6.1 million of fair value losses on the remainder of the Auckland investment properties that we are selling. As part of our ongoing cost reduction and simplification activities, we disposed of certain offshore entities that had been used as part of previous financing structures.

Speaker #1: With their disposal, we have to release the cumulative foreign currency translation movements totaling $55.3 million. Finally, on completion of the NZICC, we closed out the accounting for the deferred license.

Speaker #1: These accounting entries have the effect of creating a deferred tax asset of $73 million as the license was recognized against the NZICC assets.

Speaker #1: The deferred tax asset will reduce over time as the NZICC assets depreciate. Turning to slide 15, I'll start by reiterating that we continue to meet our debt covenants.

Blair Woodbury: The deferred tax asset will reduce over time as the NZICC assets depreciate. Turning to slide 15. I will start with reiterating that we continue to meet our debt covenants. We are making good progress on delivering the balance sheet reset through the asset monetization program. The debt to EBITDA ratio used in our banking covenant calculation is at 3.1 times. It is marginally above the level we indicated in August last year of three times, due mainly to the lower level of earnings in Q4 of FY26. The metrics are also before the receipt of the sale proceeds from the Auckland commercial properties and The Grand by SkyCity. We have given you an indication of where these metrics would be, should both of these assets sell at the prices in their respective agreements.

Blair Woodbury: The deferred tax asset will reduce over time as the NZICC assets depreciate. Turning to slide 15. I will start with reiterating that we continue to meet our debt covenants. We are making good progress on delivering the balance sheet reset through the asset monetization program. The debt to EBITDA ratio used in our banking covenant calculation is at 3.1x. It is marginally above the level we indicated in August last year of three times, due mainly to the lower level of earnings in Q4 of FY26. The metrics are also before the receipt of the sale proceeds from the Auckland commercial properties and The Grand by SkyCity. We have given you an indication of where these metrics would be, should both of these assets sell at the prices in their respective agreements.

Speaker #1: We are making good progress on delivering the balance sheet reset through the asset monetization program. The debt-to-EBITDA ratio used in our banking covenant calculation is at 3.1 times.

Speaker #1: It's marginally above the level we indicated in August last year of three times, due mainly to the lower level of earnings in the fourth quarter of FY26.

Speaker #1: The metrics are also before the receipt of the sale proceeds from the Auckland commercial properties and the Grand Hotel. We've given you an indication of where these metrics would be should both of these assets sell at the prices in their respective agreements.

Speaker #1: We are now unconditional with the Auckland commercial properties, and the gross sale proceeds of $74.5 million will be received in September.

Blair Woodbury: We are now unconditional with the Auckland commercial properties, and the gross sale proceeds of NZD 74.5 million will be received in September. We also expect to update you on The Grand by SkyCity sales process around the end of September. We are also expecting a review of the current S&P negative outlook on our BBB- credit rating post the settlement of The Grand by SkyCity sale. We remain committed to a debt to EBITDA ratio of below two times by the end of FY27. This excludes any payment we may need to make for any online licenses, as Jason just touched on. We will be able to provide an update on this in October following the conclusion of the online license auction.

Blair Woodbury: We are now unconditional with the Auckland commercial properties, and the gross sale proceeds of NZD 74.5 million will be received in September. We also expect to update you on The Grand by SkyCity sales process around the end of September. We are also expecting a review of the current S&P negative outlook on our BBB- credit rating post the settlement of The Grand by SkyCity sale. We remain committed to a debt to EBITDA ratio of below two times by the end of FY 2027. This excludes any payment we may need to make for any online licenses, as Jason just touched on. We will be able to provide an update on this in October following the conclusion of the online license auction.

Speaker #1: We also expect to update you on the Grand Hotel sales process around the end of September. We're also expecting a review of the current S&P negative outlook on our BBB– credit rating following the settlement of the Grand Hotel sale.

Speaker #1: We remain committed to a debt-to-EBITDA ratio of below 2 times by the end of FY27. This excludes any payment we may need to make for any online licenses, as Jason just touched on.

Speaker #1: You will be able to provide an update on this in October, following the conclusion of the online license auction. We are pleased to have refinanced a portion of our banking facilities in July, increasing that part of the facility to $140 million, extending out to September 2029, and consolidating two previous tranches into just one.

Blair Woodbury: We are pleased to have refinanced a portion of our banking facilities in July, increasing that part of the facility to NZD 140 million, extending out to September 2029 and consolidating two previous tranches into just one. As previously guided, there is no dividend payable in FY26. Switching to slide 16. With the opening of the NZICC in February, FY26 marks the end of the CapEx investment in this asset, and we now have less than 100 matters from nearly 20,000 to resolve, leading to the final retention payment that will become payable in FY27. The notional free cash flow from our New Zealand operations is the core part of the group's cash flow. With the increased visitation and on-spend opportunity across the Auckland precinct, we are positive about the future cash flow generating capability of these assets.

Blair Woodbury: We are pleased to have refinanced a portion of our banking facilities in July, increasing that part of the facility to NZD 140 million, extending out to September 2029 and consolidating two previous tranches into just one. As previously guided, there is no dividend payable in FY 2026. Switching to slide 16. With the opening of the NZICC in February, FY 2026 marks the end of the CapEx investment in this asset, and we now have less than 100 matters from nearly 20,000 to resolve, leading to the final retention payment that will become payable in FY 2027. The notional free cash flow from our New Zealand operations is the core part of the group's cash flow. With the increased visitation and on-spend opportunity across the Auckland precinct, we are positive about the future cash flow generating capability of these assets.

Speaker #1: As previously guided, there is no dividend payable in FY26. Switching to slide 16. With the opening of the NZICC in February, FY26 marks the end of the capex investment in this asset, and we now have fewer than 100 matters—down from nearly 20,000—to resolve, leading to the final retention payment that will become payable in FY27.

Speaker #1: The notional free cash flow from our New Zealand operations is the core part of the group's cash flow. With the increased visitation and on-spend opportunity across the Auckland precinct, we are positive about the future cash flow generating capability of these assets.

Speaker #1: In FY26, New Zealand generated $121.7 million of notional free cash flow, an increase of $21.2 million driven by reduced additions to assets. We have access to a large amount of liquidity through our undrawn bank facilities, $30 million on term deposit, and $84 million of cash, even allowing for a full repayment of the retail bond.

Blair Woodbury: In FY26, New Zealand generated NZD 121.7 of notional free cash flow, an increase of NZD 21.2 million driven by reduced addition to assets. We have access to a large amount of liquidity through our undrawn bank facilities, NZD 30 million on term deposit, and NZD 84 million of cash, even allowing for a full repayment of the retail bond. As shown on the slide, I would like to highlight that upcoming repayment date of the retail bond in May 2027. We are working with the board later in calendar 2026 to determine the balance sheet settings and optimal debt structures once we are on the other side of the online auction and confirmation of sale proceeds from The Grand. As noted on the previous page, after allowing for the retail bond payment, we currently expect to have access to NZD 186 million of liquidity. Turning to slide 17.

Blair Woodbury: In FY 2026, New Zealand generated NZD 121.7 of notional free cash flow, an increase of NZD 21.2 million driven by reduced addition to assets. We have access to a large amount of liquidity through our undrawn bank facilities, NZD 30 million on term deposit, and NZD 84 million of cash, even allowing for a full repayment of the retail bond. As shown on the slide, I would like to highlight that upcoming repayment date of the retail bond in May 2027. We are working with the board later in calendar 2026 to determine the balance sheet settings and optimal debt structures once we are on the other side of the online auction and confirmation of sale proceeds from The Grand. As noted on the previous page, after allowing for the retail bond payment, we currently expect to have access to NZD 186 million of liquidity. Turning to slide 17.

Speaker #1: As shown on the slide, I'd like to highlight the upcoming repayment date of the retail bond in May 2027. We are working with the Board later in calendar 2026 to determine the balance sheet settings and optimal debt structures once we are on the other side of the online auction and confirmation of sale proceeds from the Grand.

Speaker #1: As noted on the previous page, after allowing for the retail bond payment, we currently expect to have access to $186 million of liquidity. Turning to slide 17.

Speaker #1: As I just spoke about, FY26 marks the end of our NZICC investment. Capex excluding interest was $95.4 million, a decline of $43 million from FY25.

Blair Woodbury: As I just spoke about, FY26 marks the end of our NZICC investment. CapEx, excluding interest, was NZD 95.4 million, a decline of NZD 43 million from FY25. When I joined, I recognized the impact of higher fuel and reduced consumer discretionary spend back in March, and we immediately reviewed and reduced our CapEx program to partially offset the lower earnings. NZICC CapEx for FY26 accounts for over 90% of our growth investment. In addition to the B3 program operating costs, we spent approximately NZD 10 million in FY26 across New Zealand and Adelaide to lift our regulatory capabilities. We will continue to manage our capital expenditure in a disciplined way, ensuring any money spent improves the customer experience, enhances our regulatory compliance capabilities, and delivers the appropriate returns that we demand.

Blair Woodbury: As I just spoke about, FY 2026 marks the end of our NZICC investment. CapEx, excluding interest, was NZD 95.4 million, a decline of NZD 43 million from FY 2025. When I joined, I recognized the impact of higher fuel and reduced consumer discretionary spend back in March, and we immediately reviewed and reduced our CapEx program to partially offset the lower earnings. NZICC CapEx for FY26 accounts for over 90% of our growth investment. In addition to the B3 program operating costs, we spent approximately NZD 10 million in FY26 across New Zealand and Adelaide to lift our regulatory capabilities. We will continue to manage our capital expenditure in a disciplined way, ensuring any money spent improves the customer experience, enhances our regulatory compliance capabilities, and delivers the appropriate returns that we demand.

Speaker #1: When I joined, I recognized the impact of higher fuel costs and reduced consumer discretionary spending back in March, and we immediately reviewed and reduced our capex program to partially offset the lower earnings.

Speaker #1: NZICC capex for FY26 accounts for over 90% of our growth investment. In addition to the B3 program operating costs, we spent approximately $10 million in FY26 across New Zealand and Adelaide to lift our regulatory capabilities.

Speaker #1: We will continue to manage our capital expenditure in a disciplined way, ensuring any money spent improves the customer experience, enhances our regulatory compliance capabilities, and delivers the appropriate returns that we demand.

Speaker #1: Going forward, we expect our future capex to be within a range of $80 to $100 million before any investment on an online license, and in FY27 there is the final payment of $10 million for NZICC. $8 million is also allocated for payments associated with upgrading the railway building in Adelaide.

Blair Woodbury: Going forward, we expect our future CapEx to be within a range of NZD 80 to NZD 100 million before any investment on an online license. In FY27, there is the final payment of NZD 10 million for NZICC. NZD 8 million is also allocated for payments associated with upgrading the railway building in Adelaide. We will have a reset of our asset base, and therefore our forecast Auckland CapEx following the sale of the commercial properties and The Grand by SkyCity. However, we do need to catch up on some expenditures that were deferred over recent years, particularly in some of our customer-facing areas, such as the Auckland gaming floors and some of the food and beverage outlets. We also need to invest in the process improvements that will support the reduction in headcount that Jason touched on earlier. With that, I will hand over to Callum.

Blair Woodbury: Going forward, we expect our future CapEx to be within a range of NZD 80 to NZD 100 million before any investment on an online license. In FY 2027, there is the final payment of NZD 10 million for NZICC. NZD 8 million is also allocated for payments associated with upgrading the railway building in Adelaide. We will have a reset of our asset base, and therefore our forecast Auckland CapEx following the sale of the commercial properties and The Grand by SkyCity. However, we do need to catch up on some expenditures that were deferred over recent years, particularly in some of our customer-facing areas, such as the Auckland gaming floors and some of the food and beverage outlets. We also need to invest in the process improvements that will support the reduction in headcount that Jason touched on earlier. With that, I will hand over to Callum.

Speaker #1: We will have a reset of our asset base and, therefore, our forecast Auckland capex following the sale of the commercial properties and the Grand Hotel.

Speaker #1: However, we do need to catch up on some expenditures that were deferred over recent years, particularly in some of our customer-facing areas, such as the Auckland gaming floors and some of the food and beverage outlets.

Speaker #1: We also need to invest in the process improvements that will support the reduction in headcount that Jason touched on earlier. With that, I'll hand over to Callum.

Speaker #2: Thanks, Blair. Good morning, everyone. Turning to slide 19 and our Auckland property, FY26 site-wide visitation across our Auckland precinct was broadly flat on the prior year, with lower gaming visitation offset by an increase in non-gaming visitation.

Callum Mallett: Thanks, Blair. Good morning, everyone. Turning to slide 19 and our Auckland property. FY26 site-wide visitation across our Auckland precinct was broadly flat on the prior year, with lower gaming visitation offset by an increase in non-gaming visitation. We did see a noticeable impact in March from the flow-on effects of the Middle East conflict, with higher fuel prices resulting in lower levels of visitation as consumer discretionary spending weakened. We responded to this change in customer behavior by introducing discounted parking and food offers. These were well received by our customers, and we saw visitation stabilize at these lower levels for the remainder of FY26. The implementation of Carded Play significantly impacted gaming revenue for the year but was in line with our expectations and the guidance we provided to the market. We were generally pleased with how the rollout went.

Callum Mallett: Thanks, Blair. Good morning, everyone. Turning to slide 19 and our Auckland property. FY 2026 site-wide visitation across our Auckland precinct was broadly flat on the prior year, with lower gaming visitation offset by an increase in non-gaming visitation. We did see a noticeable impact in March from the flow-on effects of the Middle East conflict, with higher fuel prices resulting in lower levels of visitation as consumer discretionary spending weakened. We responded to this change in customer behavior by introducing discounted parking and food offers. These were well received by our customers, and we saw visitation stabilize at these lower levels for the remainder of FY 2026. The implementation of Carded Play significantly impacted gaming revenue for the year but was in line with our expectations and the guidance we provided to the market. We were generally pleased with how the rollout went.

Speaker #2: We did see a noticeable impact in March from the flow-on effects of the Middle East conflict, with higher fuel prices resulting in lower levels of visitation as consumer discretionary spending weakened.

Speaker #2: We responded to this change in customer behavior by introducing discounted parking and food offers. These were well received by our customers, and we saw visitation stabilize at these lower levels for the remainder of FY26.

Speaker #2: The implementation of carded play significantly impacted gaming revenue for the year, but was in line with our expectations and the guidance we provided to the market.

Speaker #2: We were generally pleased with how the rollout went. The work we put into minimizing and managing the extra requirements we imposed on our customers helped maintain customer satisfaction at levels consistent with those prior to the rollout.

Callum Mallett: The work we put into minimizing and managing the extra requirements we imposed on our customers helped maintain customer satisfaction at levels consistent with those prior to the rollout. We have also seen strong opt-in to the loyalty program SHOW by SkyCity. As Jason mentioned earlier, we rolled out phase 2 of Carded Play in July, and these upgrades are not expected to impact earnings. We are focused on continually improving the experience for our customers from Carded Play and are focused on utilizing the data we now have on all our gaming customers. The implementation of new technologies such as Angel Eye Complete and QCI will help drive gaming personalization and growth in FY27, along with the rollout of new gaming product, including the introduction of Aristocrat's new game, Phoenix Link. We successfully opened the NZICC in February and have been pleased with early trading.

Callum Mallett: The work we put into minimizing and managing the extra requirements we imposed on our customers helped maintain customer satisfaction at levels consistent with those prior to the rollout. We have also seen strong opt-in to the loyalty program SHOW by SkyCity. As Jason mentioned earlier, we rolled out phase 2 of carded play in July, and these upgrades are not expected to impact earnings. We are focused on continually improving the experience for our customers from Carded Play and are focused on utilizing the data we now have on all our gaming customers. The implementation of new technologies such as Angel Eye Complete and QCI will help drive gaming personalization and growth in FY 2027, along with the rollout of new gaming product, including the introduction of Aristocrat's new game, Phoenix Link. We successfully opened the NZICC in February and have been pleased with early trading.

Speaker #2: And we've also seen strong opt-in to the loyalty program shown by SkyCity. As Jason mentioned earlier, we rolled out phase two of carded play in July, and these upgrades are not expected to impact earnings.

Speaker #2: We have focused on continually improving the experience for our customers from carded play, and have focused on utilizing the data we now have on all our gaming customers.

Speaker #2: The implementation of new technologies such as AngelEye Complete and QCI will help drive gaming personalization and growth in FY27, along with the rollout of new gaming products, including the introduction of Aristocrat's new game, Phoenix Link.

Speaker #2: We successfully opened the NZICC in February and have been pleased with early trading. We have been able to learn much about the behavior of visitors to the NZICC across a wide range of events.

Callum Mallett: We have been able to learn much about the behavior of visitors to the NZICC across a wide range of events. We will take these learnings into how we optimize visitation across the Auckland precinct. The growth in revenue from the hotel portfolio illustrates the benefits of events at the NZICC, with improvements in occupancy providing the opportunity to optimize the average daily rate. Food and beverage, car parking, and the Sky Tower also benefit from this growth in visitation, and we continue to evolve our offerings to ensure we maximize the on-spend benefits to the Auckland precinct. We see the opening of the CRL in September as a positive catalyst for visitation to both the CBD and our precinct. Turning now to slide 20. We were pleased with the performance of both Hamilton and Queenstown over the year, with the impact of Carded Play being less than expected, especially in Queenstown.

Speaker #2: We'll take these learnings into how we optimize visitation across the Auckland precinct. The growth and revenue from the hotel portfolio illustrates the benefits of events at the NZICC, with improvements in occupancy providing the opportunity to optimize the average daily rate.

Speaker #2: Food and beverage, car parking in the Sky Tower, also benefit from this growth and visitation, and we continue to evolve our offerings to ensure we maximize the on-spend benefits to the Auckland precinct.

Speaker #2: We see the opening of the CRL in September as a positive catalyst for visitation to both the CBD and our precinct. Turning now to slide 20.

Speaker #2: We were pleased with the performance of both Hamilton and Queenstown over the year, with the impact of carded play being less than expected, especially in Queenstown.

Speaker #2: We also saw minimal impacts from the Middle East conflict on fourth-quarter trading across both Hamilton and Queenstown. The visitation changes in both gaming and food and beverage are primarily due to the change in how we measure our visitation across both casinos.

Callum Mallett: We also saw minimal impacts from the Middle East conflict on Q4 trading across both Hamilton and Queenstown. The visitation changes in both gaming and food and beverage are primarily due to the change in how we measure our visitation across both casinos, with the key driver being the introduction of Carded Play allowing us to more accurately track player metrics. This makes a direct comparison with the prior period less relevant, but you will also see a corresponding increase in spend per visitation. A strong rural economy has benefited our Hamilton site, with property investments such as the expansion of an outdoor gaming balcony being well received by our customers. We submitted our license renewal application for the Hamilton Casino during the year, and we will work through this process over FY27.

Callum Mallett: We also saw minimal impacts from the Middle East conflict on Q4 trading across both Hamilton and Queenstown. The visitation changes in both gaming and food and beverage are primarily due to the change in how we measure our visitation across both casinos, with the key driver being the introduction of carded play allowing us to more accurately track player metrics. This makes a direct comparison with the prior period less relevant, but you will also see a corresponding increase in spend per visitation. A strong rural economy has benefited our Hamilton site, with property investments such as the expansion of an outdoor gaming balcony being well received by our customers. We submitted our license renewal application for the Hamilton Casino during the year, and we will work through this process over FY 2027.

Speaker #2: The key driver here is the introduction of carded play, which allows us to more accurately track player metrics. This makes a direct comparison with the prior period less relevant, but you will also see a corresponding increase in spend per visitation.

Speaker #2: A strong rural economy has benefited our Hamilton site, with property investments such as the expansion of an outdoor gaming balcony being well received by our customers.

Speaker #2: We submitted our license renewal application for the Hamilton Casino during the year, and we will work through this process over FY27. Queenstown continues to benefit from strong international visitation, especially from Australia, helped by increases in trans-Tasman aircraft capacity.

Callum Mallett: Queenstown continues to benefit from strong international visitation, especially from Australia, helped by increases in trans-Tasman aircraft capacity. The Queenstown Casino license was successfully renewed for a further 15 years from December 2025. We recently refreshed the Level 2 bar and lounge offering in Queenstown, with the area now providing a more relevant customer experience as well as delivering greater operational efficiencies. Turning now to slide 21 and our Adelaide operations. Gaming revenue was slightly down year on year, with growth in both local EGMs and local tables being offset by lower play in our premium table segment. We ended the year with an improvement in our market share in the South Australian EGM market, improving from 7.9% in June 2025 to 8.3% at June 2026.

Speaker #2: The Queenstown Casino license was successfully renewed for a further 15 years from December 25. We recently refreshed the Level Two bar and lounge offering in Queenstown, with the area now providing a more relevant customer experience, as well as delivering greater operational efficiencies.

Speaker #2: Turning now to slide 21 and our Adelaide operations. Gaming revenue was slightly down year-on-year, with growth in both local EGMs and local tables being offset by lower play in our premium table segment.

Speaker #2: We ended the year with an improvement in our market share in the South Australian EGM market, increasing from 7.9% in June 2025 to 8.3% at June 2026.

Speaker #2: Non-gaming revenue was up by 3.9% for the year, with spend per visit increasing in F&B, and both occupancy and rate growing on the back of strong events-driven visitation to South Australia and the opening of a new restaurant, Kouame.

Callum Mallett: Non-gaming revenue was up by 3.9% for the year, with spend per visit increasing in F&B, and both occupancy and rate growing on the back of strong events-driven visitation to South Australia and the opening of a new restaurant, Huami. We had a strong cost focus in the H2 of FY26 and were able to reduce the cost base by AUD 10 million, in line with our expectations that we spoke to in February. We are continuing to work hard on the B3 program and are now targeting completion in early FY28. The timing for the implementation of Carded Play into Adelaide is yet to be confirmed but will not occur in the H1. I will now hand back to Jason.

Callum Mallett: Non-gaming revenue was up by 3.9% for the year, with spend per visit increasing in F&B, and both occupancy and rate growing on the back of strong events-driven visitation to South Australia and the opening of a new restaurant, Huami. We had a strong cost focus in the H2 of FY 2026 and were able to reduce the cost base by AUD 10 million, in line with our expectations that we spoke to in February. We are continuing to work hard on the B3 program and are now targeting completion in early FY 2028. The timing for the implementation of Carded Play into Adelaide is yet to be confirmed but will not occur in the H1. I will now hand back to Jason.

Speaker #2: We had a strong cost focus in the second half of FY26 and were able to reduce the cost base by $10 million Australian dollars, in line with our expectations that we spoke to in February.

Speaker #2: We are continuing to work hard on the B3 program and are now targeting completion in early FY28. The timing for the implementation of carded play into Adelaide is yet to be confirmed, but it will not occur in the first half.

Speaker #2: I will now hand back to Jason.

Speaker #3: Thanks, Colin. Turning to the outlook for FY27 on slide 23, I'd now like to speak briefly about current trading and the outlook for earnings going forward.

Jason Walbridge: Thanks, Callum. Turning to the outlook for FY27 on slide 23. I would now like to speak briefly about current trading and the outlook for earnings going forward. When we updated our FY26 earnings guidance in May, we noted the material impact of the Middle East conflict had on discretionary spend, particularly in our Auckland and Adelaide properties, and I spoke about this earlier. The earnings impact on EBITDA we saw in the Q4 of FY26 was approximately $20 million when compared to the Q3, and this has continued into early Q1 FY27 trading. We expect to see the benefit from the cost out program impact our reported earnings in FY27. The CapEx for FY27 is expected to be in the range of $80 to $100 million, which includes retention payments for the NZICC but excludes any costs for online licenses.

Jason Walbridge: Thanks, Callum. Turning to the outlook for FY 2027 on slide 23. I would now like to speak briefly about current trading and the outlook for earnings going forward. When we updated our FY 2026 earnings guidance in May, we noted the material impact of the Middle East conflict had on discretionary spend, particularly in our Auckland and Adelaide properties, and I spoke about this earlier. The earnings impact on EBITDA we saw in the Q4 of FY 2026 was approximately $20 million when compared to the Q3, and this has continued into early Q1 FY 2027 trading. We expect to see the benefit from the cost out program impact our reported earnings in FY 2027. The CapEx for FY 2027 is expected to be in the range of $80 to $100 million, which includes retention payments for the NZICC but excludes any costs for online licenses.

Speaker #3: When we updated our FY26 earnings guidance in May, we noted the material impact that the Middle East conflict had on discretionary spend, particularly in our Auckland and Adelaide properties, and I spoke about this earlier.

Speaker #3: The earnings impact on EBITDA we saw in the fourth quarter of FY26 was approximately $20 million when compared to the third quarter, and this has continued into early first quarter FY27 trading.

Speaker #3: We expect to see the benefit from the cost-out program impact our reported earnings in FY27, and the CapEx for FY27 is expected to be in the range of $80 to $100 million, which includes retention payments for the NZICC, but excludes any costs for online licenses.

Speaker #3: We note that there are heightened levels of volatility and uncertainty in the macroeconomic environment, which are currently influencing consumer sentiment, and we are not providing earnings guidance for FY.

Jason Walbridge: We note that there is heightened levels of volatility and uncertainty in the macroeconomic environment currently influencing consumer sentiment, and we are not providing earnings guidance for FY-

Speaker #1: The conference will resume shortly. Ladies and gentlemen, please remain on the line. Your conference will resume shortly. Please remain on the line. Your conference will resume shortly.

Operator: Conference will resume shortly. Ladies and gentlemen, please remain on the line. Your conference will resume shortly. Please remain on the line. Your conference will resume shortly. We have the speakers back. Please continue.

Speaker #1: We have the speakers back. Please continue.

Speaker #3: All right, sorry about that. That's the second time this morning. We'll start from the top on the Outlook slide again. So, just to briefly outline current trading and the outlook for earnings in FY27.

Jason Walbridge: All right. Sorry about that. That is the second time this morning. We will start from the top on the outlook slide again. Just to outline briefly about current trading and the outlook for earnings in FY27. We updated our FY26 earnings guidance in May, and we noted the material impact the Middle East conflict had had on discretionary spend, particularly in our Auckland and Adelaide properties. I spoke about this earlier. The earnings impact on EBITDA we saw in Q4 FY26 was approximately NZD 20 million when compared to Q3 FY26, and we have seen this continue into early Q1 FY27 trading. We do expect there to be some one-off costs from the cost-out program impact our reported earnings in FY27. For CapEx in FY27, we do expect that to be in the range of NZD 80 to 100 million.

Jason Walbridge: All right. Sorry about that. That is the second time this morning. We will start from the top on the outlook slide again. Just to outline briefly about current trading and the outlook for earnings in FY 2027. We updated our FY 2026 earnings guidance in May, and we noted the material impact the Middle East conflict had had on discretionary spend, particularly in our Auckland and Adelaide properties. I spoke about this earlier. The earnings impact on EBITDA we saw in Q4 FY 2026 was approximately NZD 20 million when compared to Q3 FY 2026, and we have seen this continue into early Q1 FY27 trading. We do expect there to be some one-off costs from the cost-out program impact our reported earnings in FY 2027. For CapEx in FY 2027, we do expect that to be in the range of NZD 80 to 100 million.

Speaker #3: We updated our FY26 earnings guidance in May, and we noted the material impact the Middle East conflict has had on discretionary spend, particularly in our Auckland and Adelaide properties.

Speaker #3: And I spoke about this earlier. The earnings impact on EBITDA we saw in the fourth quarter of FY26 was approximately $20 million, when compared to the third quarter for FY26, and we've seen this continue into early first quarter FY27 trading.

Speaker #3: We do expect there to be some one-off costs from the cost out program impact our reported earnings, and FY27. And for CapEx in FY27, we do expect that to be in the range of 80 to 100 million dollars, and as Blair outlined, this includes the retention payments for the NZICC, but excludes any costs for outline online licenses.

Jason Walbridge: As Blair outlined, this includes the retention payments for the NZICC but excludes any costs for online licenses. We note that there are heightened levels of volatility and uncertainty in the macroeconomic environment currently influencing consumer sentiment, and we are not providing earnings guidance for FY27 at this time. In this morning's presentation, I have outlined our key priorities for FY27. Completing our asset monetization program, resetting our operating model, and realizing the meaningful benefits from our cost reduction initiatives, finalizing our agreement with CBS while continuing the Adelaide remediation program, and now commencing a strategic review of that business. Entering New Zealand's regulated online casino market, which we see as a significant growth opportunity for ourselves. Together, these priorities provide a clear pathway to sustainable earnings growth, and our focus continues to be on disciplined execution, restoring positive cash flow, and once achieved, reinstating dividends for shareholders.

Jason Walbridge: As Blair outlined, this includes the retention payments for the NZICC but excludes any costs for online licenses. We note that there are heightened levels of volatility and uncertainty in the macroeconomic environment currently influencing consumer sentiment, and we are not providing earnings guidance for FY 2027 at this time. In this morning's presentation, I have outlined our key priorities for FY 2027. Completing our asset monetization program, resetting our operating model, and realizing the meaningful benefits from our cost reduction initiatives, finalizing our agreement with CBS while continuing the Adelaide remediation program, and now commencing a strategic review of that business. Entering New Zealand's regulated online casino market, which we see as a significant growth opportunity for ourselves. Together, these priorities provide a clear pathway to sustainable earnings growth, and our focus continues to be on disciplined execution, restoring positive cash flow, and once achieved, reinstating dividends for shareholders.

Speaker #3: In this morning's presentation, I've outlined our key priorities for FY27: completing our asset monetization program; resetting our operating model and realizing the meaningful benefits from our cost reduction initiatives; finalizing our agreement with CBS while continuing the Adelaide remediation program; and now commencing a strategic review of that business.

Speaker #3: And entering New Zealand's regulated online casino market, which we see as a significant growth opportunity for ourselves. Together, these priorities provide a clear pathway to sustainable earnings growth, and our focus continues to be on disciplined execution, restoring positive cash flow, and, once achieved, reinstating dividends for shareholders.

Speaker #3: We will, of course, provide a trading update at the annual shareholder meeting in October. Thank you for listening this morning, and we will now take questions.

Jason Walbridge: We will, of course, provide a trading update at the annual shareholder meeting in October. Thank you for listening this morning, and we will now take questions, hopefully with no further technology interruptions. Let us see how we go.

Speaker #3: Hopefully, with no further technology interruptions, let's see how we go.

Speaker #1: Thank you. We will now begin the question and answer session. To ask a question now, please press star, 11 on your telephone, and state your name to be announced.

Operator: Thank you. We will now begin the question and answer session. To ask a question now, please press star 1 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 1 again. A moment for first question. Our first question comes from the line of David Fabris from Macquarie. Please ask your question, David. Your line is open.

Operator: Thank you. We will now begin the question and answer session. To ask a question now, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. A moment for first question. Our first question comes from the line of David Fabris from Macquarie. Please ask your question, David. Your line is open.

Speaker #1: To withdraw your question, please press star 11 again. A moment for this question. And our first question comes from the line of David Fabrice from Macquarie.

Speaker #1: Please ask your question, David. Your line is open.

Speaker #3: Oh, hi Jason, Blair, and Colin. Can we just start off with the asset monetization program? I appreciate there's a couple of transactions going on there, and you've shared the gross proceeds.

David Fabris: Hi, Jason, Blair, and Callum. Can we just start off with the asset monetization program? I appreciate there is a couple of transactions going on there, and you have shared the gross proceeds. Can you maybe share the EBITDA benefit you got from all the earnings from those assets in 2026, so we can think about the impact once you do get that The Grand by SkyCity transaction away?

Speaker #3: Can you maybe share the EBITDA benefit you got from all the earnings from those assets in Q2–Q6 so we can think about the impact once you do get that Grand Hotel transaction away?

Speaker #2: Yeah. Morning, David. I'll hand over to Blair and get him to share that.

Jason Walbridge: Yeah. Morning, David. I will hand over to Blair and get him to share that.

Speaker #3: Yeah, on a normalized basis, the grand is the big one, obviously. And that would be in high single-digit EBITDA impacts, on an annualized basis.

Blair Woodbury: Yeah. On a normalized basis, The Grand by SkyCity is the big one, obviously. That would be in high single-digit EBITDA impacts on an annualized basis.

Speaker #3: Okay, perfect. That's fine. And then, the commercial one—the commercial ones are, to be honest, lost in the roundings. By the time you factor in all of the cost of maintaining the buildings, it's barely a $1 to $2 million EBITDA impact.

David Fabris: Okay, perfect. That's fine.

Blair Woodbury: The commercial ones, to be honest, lost in the roundings. By the time you factor in all of the costs of maintaining the buildings, it's barely NZD 1 million to NZD 2 million EBITDA impact.

Blair Woodbury: The commercial ones, to be honest, lost in the roundings. By the time you factor in all of the costs of maintaining the buildings, it's barely NZD 1 to 2 million EBITDA impact.

Speaker #3: Okay, appreciate it. Thank you for that. And just thinking about the cost-out, it looks like it's mostly contained to SkyCity Auckland and the corporate costs.

David Fabris: Okay. Appreciate it. Thank you on that. Just thinking about the cost out, it looks like it's mostly contained to SkyCity Auckland and the corporate costs. Are you able to provide guidance on the FY27 corporate cost line? Just thinking about Auckland, maybe you can set the framework on how we should think about margins. A range would be really helpful given the moving parts.

David Fabris: Okay. Appreciate it. Thank you on that. Just thinking about the cost out, it looks like it's mostly contained to SkyCity Auckland and the corporate costs. Are you able to provide guidance on the FY 2027 corporate cost line? Just thinking about Auckland, maybe you can set the framework on how we should think about margins. A range would be really helpful given the moving parts.

Speaker #3: Are you able to provide guidance on the FY27 corporate cost line? And then, just thinking about Auckland, maybe you can set the framework on how we should think about margins—a range would be really helpful, given the moving parts.

Speaker #3: Yeah. I'll cover the cost part, and Colin can cover the margin part. We're not giving guidance on the exact cost in detail at this point.

Blair Woodbury: I'll cover the cost part, and Callum can cover the margin parts. We're not giving guidance on the exact cost in detail at this point, mainly because the large proportion of it comes from people-related costs, and we are still in a consultation process. It would be rude of me to presuppose what that outcome would be. It will be a combination of people-related costs and third-party spend. Callum on the margins.

Speaker #3: Mainly because a large proportion of it comes from people-related costs, and we are still in a consultation process. It would be rude of me to presuppose what that outcome would be.

Speaker #3: But it will be a combination of people-related costs and third-party spend. Colin, on the margins.

Speaker #2: Yeah. Thanks, Blair. Hey, David. So, look, on margins for Auckland, obviously we saw a drop in '26. Three factors there, obviously: one, introduction of MCP—so therefore the lower gaming revenue—impact of fuel, and then obviously the opening of the NZICC.

Callum Mallett: Yeah. Thanks, Blair. Hey, David. Look, on margins for Auckland, obviously we saw a drop in 2026. You had three factors there, obviously. One, introduction of Model Context Protocol, so therefore the lower gaming revenue, impact of fuel. Then obviously the opening of the NZICC and what you would sort of call a soft opening in the first few months, not the traditional business that we would expect to see in a sort of four-month period. So, we would hope looking into this year, that margin will improve demonstrably on the back of NZICC operations, the larger international conferences beginning to come through, and that on spend, albeit as Jason has alluded to previously, we do see growth in non-gaming outstripping gaming growth, and obviously that comes at a lower margin than gaming.

Speaker #2: And what you'd sort of call a soft opening in the first few months, not the traditional business that we would expect to see in a sort of four-month period.

Speaker #2: So we would hope, looking into this year, that margin will improve demonstrably on the back of NZICC operations, the larger international conferences beginning to come through, and that on spend, albeit as Jason has alluded to previously, we do see growth in non-gaming outstripping gaming growth. Obviously, that comes at a lower margin than gaming.

Speaker #3: Yeah. Okay. And just to clarify, does that margin guidance for the improvement include the impact of the Grand Hotel?

David Fabris: Yeah. Okay. Just to clarify, does that margin guidance of the improvement include the impact of The Grand by SkyCity?

Speaker #2: Not at this point. Not until we've concluded.

Blair Woodbury: Not at this point. Not until we have-

Blair Woodbury: Not at this point. Not until we have concluded.

David Fabris: Okay

Blair Woodbury: concluded.

Speaker #3: Okay. And so one final question from me, just on the online piece. I'm hoping you can share some thoughts around the license cost potential.

David Fabris: Okay. Sorry, one final question from me, just on the online piece. I am hoping you can share some thoughts around the license cost potential. I assume that you are going to bid for three as well. Then just to round it out, just your thoughts or aspirations on market share and just your confidence in the market size, because you are talking north of NZD 1 billion now. I think back in early 2025, you were speaking to a NZD 700 million market. So it has moved up quite significantly from there. Any comments around those parts would be helpful.

Speaker #3: I assume that you're going to bid for three as well. And then, just to round it out, could you share your thoughts or aspirations on market share?

Speaker #3: And just your confidence in the market size, because you're talking north of a billion dollars now. I think back in early 2025, you were speaking to a $700 million market.

Speaker #3: So it's moved up quite significantly from there. Any comments around those parts would be helpful.

Speaker #2: David, I'll take that one. I'll start with market size. Yes, the information that I've shared this morning has come from the Department of Internal Affairs and some research that they commissioned.

Jason Walbridge: David, I will take that one. I will start with market size. The information that I have shared this morning has come from the Department of Internal Affairs and some research that they commissioned. You are right, the market has grown significantly over the last 2 to 3 years. The growth rate is double-digit percentages. In terms of license costs, we know there is going to be up to 15 licenses, that they are going to be awarded through an auction process. That auction process is going to result in everyone paying the same price. We expect that other bidders, like ourselves, will take a very disciplined and rational approach, that the price paid at auction will be relative to the value that we all believe from getting into the market and the returns that we can deliver. We have not provided any specific information on what we think a license could be worth.

Jason Walbridge: David, I will take that one. I will start with market size. The information that I have shared this morning has come from the Department of Internal Affairs and some research that they commissioned. You are right, the market has grown significantly over the last two to three years. The growth rate is double-digit percentages. In terms of license costs, we know there is going to be up to 15 licenses, that they are going to be awarded through an auction process. That auction process is going to result in everyone paying the same price. We expect that other bidders, like ourselves, will take a very disciplined and rational approach, that the price paid at auction will be relative to the value that we all believe from getting into the market and the returns that we can deliver. We have not provided any specific information on what we think a license could be worth.

Speaker #2: So, you're right. The market has grown significantly over the last two to three years. The growth rate is in the double-digit percentages. In terms of license costs, we know there's going to be up to 15 licenses.

Speaker #2: They're going to be awarded through an auction process. That auction process is going to result in everyone paying the same price. We expect that other bidders, like ourselves, will take a very disciplined and rational approach.

Speaker #2: The price paid at auction will be relative to the value that we all believe, and will come from getting into the market and the returns that we can deliver.

Speaker #2: We haven't provided any specific information on what we think a license could be worth. You would obviously understand that we're about to enter a competitive bidding process, and we wouldn't want to tip our hand there.

Jason Walbridge: As you would obviously understand that we are about to enter a competitive bidding process, and we would not want to tip our hand there. The third thing I think you asked me was just around market share. We have not provided any further color on that at the moment. We believe we are well-positioned in the market. We think that we have got the opportunity to be the local hero, the New Zealand company offering online casinos for New Zealanders. We have been here for 30 years. We understand the regulatory environment. We understand New Zealanders quite well. So we are very optimistic and excited about what this opportunity presents us. I just want to underscore, though, we are going to take a very disciplined approach to this in terms of thinking through how we move forward through auction and are successful through investment in the early phases of the market opening.

Speaker #2: The third thing I think you asked me was just around market share. Look, we haven't provided any further color on that at the moment.

Speaker #2: We believe we're well positioned in the market. We think that we've got the opportunity to be the local hero—the New Zealand company offering online casinos for New Zealanders.

Speaker #2: We've been here for 30 years. We understand the regulatory environment. We understand New Zealanders quite well. So we're very optimistic and excited about what this opportunity presents us.

Speaker #2: I just want to underscore, though, that we're going to take a very disciplined approach to this, in terms of thinking through how we move forward through auction and, if successful, through investment in the early phases of the market opening.

Speaker #3: Good, and I appreciate that. But is the aspiration that you bid for three licenses, though?

David Fabris: Good. I appreciate that. Is the aspiration that you bid for three licenses, though?

Speaker #2: Look, much of it is going to depend on the value of the licenses, David. So, we're currently working our way through and evaluating those things at the moment.

Jason Walbridge: Much of it is going to depend on the value of the licenses, David. So we are currently working our way through and evaluating those things at the moment.

Speaker #3: Okay, appreciate that. Thanks for the color on the questions.

David Fabris: Okay. Appreciate that. Thanks for the color on the questions.

Speaker #1: Thank you. We will now take the next question from the line of Paul Kurawa from Forsyth Barr. Please ask your question. Paul, your line is open.

Operator: Thank you. We will now take the next question from the line of Paul Kurawa from Forsyth Barr. Please ask your question. Paul, your line is open.

Operator: Thank you. We will now take the next question from the line of Paul Koraua from Forsyth Barr. Please ask your question. Paul, your line is open.

Speaker #4: Hey, good morning guys, and thanks for taking my questions. Maybe just picking up on online, I think it was quite encouraging to hear that you have a number of return hurdles set between you and the board in terms of how much you're willing to spend.

Paul Kurawa: Hey, good morning, guys, and thanks for taking my questions. Maybe just picking up on online, I think it was quite encouraging to hear that you have a number of return hurdles set between you and the board in terms of how much you are willing to spend. I guess my question is one of those return hurdles going to be based on the amount you want to pay for the license? If you think about what you have talked about with resetting the business between land and online, it sounds like there is a little bit of presupposition that you are going to bid and win a license. Maybe just a comment on that.

Paul Koraua: Hey, good morning, guys, and thanks for taking my questions. Maybe just picking up on online, I think it was quite encouraging to hear that you have a number of return hurdles set between you and the board in terms of how much you are willing to spend. I guess my question is one of those return hurdles going to be based on the amount you want to pay for the license? If you think about what you have talked about with resetting the business between land and online, it sounds like there is a little bit of presupposition that you are going to bid and win a license. Maybe just a comment on that.

Speaker #4: I guess my question is, is one of those return hurdles going to be based on the amount you want to pay for the license?

Speaker #4: And if you think about what you've talked about with resetting the business between land and online, it sounds like there's a little bit of a presupposition that you are going to bid and win a license.

Speaker #4: So maybe just a comment on that.

Speaker #2: Yeah, I'll take the first part of that, Paul, and then I'll hand over to Blair to talk about how we're approaching the investment. Yeah.

Jason Walbridge: Yeah, I will take the first part of that, Paul, then I will hand over to Blair to talk about how we are approaching the investment. Yeah, the operating reset that we are going through at the moment is as much about reacting to the historical structural changes in our earnings due to regulatory shifts, as well as getting ourselves fit for the future. That does obviously presuppose a world that we are involved in the online market, but also potentially not as well. We want to make sure that our land-based business is positioned well to offer great experiences for our customers, regardless of whether we are in the online market as well.

Speaker #2: The operating reset that we're going through at the moment is as much about reacting to the historical structural changes in our earnings due to regulatory shifts, as well as getting ourselves fit for the future as well.

Speaker #2: That does obviously presuppose a world where we're involved in the online market, but also potentially not as well. We want to make sure that our land-based business is positioned well to offer great experiences for our customers, regardless of whether we're in the online market as well.

Speaker #3: Yeah. And just picking up the return hurdles, as Jason touched on, a rational market is going to say there is a cost of entry called an online license.

Blair Woodbury: Yeah, just picking up the return hurdles. As Jason touched on, a rational market is going to say there is a cost of entry called an online license, then there are cash investments that you need to make to market your brands, acquire the customer, and ultimately down the line, retain the customer. So, we have got a raft of scenarios that we are playing out on what each one of those features may or assumptions might look like into the future. Then we put that through, as you would expect, a normal cash flow model, discount that back compared to the returns that we definitely want above our cost of capital, and any other investment options in front of us that could deliver same or potentially better returns, particularly in the land-based world. So, it is complex at the moment. We are all playing a guessing game.

Speaker #3: And then there are cash investments that you need to make to market your brands, acquire the customer, and ultimately, down the line, retain the customer.

Speaker #3: And so we've got a raft of scenarios that we're playing out on what each one of those features may or assumptions might look like into the future.

Speaker #3: And then we put that through, as you'd expect, a normal cash flow model—discount that back—compared to the returns that we definitely want above our cost of capital.

Speaker #3: And any other investment options in front of us that could deliver the same or potentially better returns, particularly in the land-based world. So, it is complex at the moment.

Speaker #3: We are all playing a guessing game, and that's why it's been a bit challenging for us to be able to give guidance, given timing is uncertain, the number of participants in the auction is uncertain, and what the cost of the license will be. The one thing that we are probably better off with is, given that the online market does exist, we do know how current New Zealand players respond to things like acquisition offers, retention offers, and reactivation offers.

Blair Woodbury: That is why it has been a bit challenging for us to be able to give guidance given timing is uncertain, the number of participants in the auction is uncertain, what the cost of the license will be. The one thing that we are probably better off is, given that the online market does exist, we do know how current New Zealand players do respond to things like acquisition offers and retention offers, reactivation offers.

Speaker #4: Thanks, guys. Appreciate that color. Maybe just secondly, moving on to Auckland. I think that's a business that's had a decent amount of disruption recently with City Rail Link, MCP, and even NZICC finally opening.

Paul Kurawa: Thanks, guys. Appreciate that color. Maybe just secondly, moving on to Auckland, I think that is a business that has had a decent amount of disruption recently with City Rail Link, MCP, even NZICC finally opening, but all of that stuff seems to be behind us now or nearing completion. Can you just sort of talk to what part of that business you think there is significant room for improvement and where you think that is going to come from and what you guys can sort of do outside of waiting for the cycle to turn? I know cost out is one of them, but if there is anything else you can point towards.

Paul Koraua: Thanks, guys. Appreciate that color. Maybe just secondly, moving on to Auckland, I think that is a business that has had a decent amount of disruption recently with City Rail Link, MCP, even NZICC finally opening, but all of that stuff seems to be behind us now or nearing completion. Can you just sort of talk to what part of that business you think there is significant room for improvement and where you think that is going to come from and what you guys can sort of do outside of waiting for the cycle to turn? I know cost out is one of them, but if there is anything else you can point towards.

Speaker #4: But all of that stuff seems to be behind us now, or nearing completion. Can you just sort of talk to what part of that business you think there is significant room for improvement, and where you think that's going to come from, and what you guys can sort of do outside of waiting for the cycle to turn?

Speaker #4: I know cost out is one of them, but if there's anything else you can point towards?

Speaker #2: Thanks, Paul. Yeah, you're right. Auckland has seen its fair share of disruption. We're obviously really thrilled about getting the convention center open, and early performance has been encouraging there, as Callum spoke to.

Jason Walbridge: Thanks, Paul. Yeah, you are right. Auckland has seen its fair share of disruption. We are obviously really thrilled getting the convention center opening and early performance has been encouraging there that Callum spoke to. CRL opens next month, and the city is starting to get a little bit of a buzz back, which is quite nice. The mayor here is very much leaning into the visitor economy, and there is a lot of encouraging initiatives in that regard. I will hand over to Callum to perhaps talk about a number of things that he sees around the property.

Speaker #2: CRL opens next month, and the city is starting to get a little bit of a buzz back, which is quite nice. The mayor here is very much leaning into the visitor economy, and there are a lot of encouraging initiatives in that regard.

Speaker #2: I'll hand over to Callum to perhaps talk about a number of things that he sees around the property.

Speaker #3: Yeah. Hi, Paul. Look, first off, February in particular, we really started to see what you're talking about—what could we be post a recession, with NZICC opening, etc.

Callum Mallett: Yeah. Hi, Paul. Look, first off, February in particular, we really started to see what you are talking about, that what could we be post a recession with NZICC opening, et cetera, and then obviously things were derailed a bit from March onwards. Look, we feel optimistic about the opportunity that Auckland has. You pointed out the disruption the entire city has had. That is certainly coming to much more of an end once CRL opens on 13 September. But for us moving into this year, the obvious opportunity of that visitation through the NZICC.

Speaker #3: And then, obviously, things were derailed a bit from March onwards. So, look, we feel optimistic about the opportunity that Auckland has. You pointed out the disruption the entire city's had.

Speaker #3: That's certainly coming to much more of an end once CRL opens on the 13th of September. But for us, moving into this year, the obvious opportunity is that visitation through the NZICC.

Speaker #3: That ability to drive hotel rate which, as we know, once we're already above a sort of 80% occupancy, let's call it, has a very good margin in the hotels.

Callum Mallett: That ability to drive hotel rate, which as we know, rate once we are already above a sort of 80% occupancy, let us call it, has a very good margin in the hotels. You will remember we invested 18-odd months ago in the production kitchen, not an insignificant amount of money, to really make sure we could drive margin in F&B. And in a really tough market, the team has grown that margin to close to 20%. So, we really see the ability to, especially with the NZICC, maximize that opportunity. We have got some opportunities, as Blair talked to, with some conservative and cautious capital expenditure, we think, to offer some really good customer initiatives, particularly around that sort of Level 3 area of the casino that links directly in with the NZICC. So hotels, yes. Tower, with hopefully growing international visitation into Auckland. But then certainly from gaming.

Speaker #3: We, you'll remember, we invested 18-odd months ago in the production kitchen. Not an insignificant amount of money to really make sure we could drive margin and even be—and in a really tough market, the team's grown that margin to close to 20%.

Speaker #3: So we really see the ability to, especially with the NZICC, maximize that opportunity. We've got some opportunities, as Blair talked to, with some conservative and cautious capital expenditure.

Speaker #3: We think to offer some really good customer initiatives, particularly around that sort of Level 3 area of the casino that links directly in with the NZICC.

Speaker #3: So, hotels, yes. A tower with hopefully growing international visitation into Auckland. But then certainly from gaming, we've lacked now a year of MCP. We've learned a lot.

Callum Mallett: We have lapped now a year of MCP. We have learnt a lot. We would like to think we have rebased that business. We would like to think that there is growth potential there.

Speaker #3: We'd like to think we've rebased that business, and we'd like to think that there's growth potential there.

Speaker #4: Awesome. Thank you. That's really good color. Maybe just last two from me on capital. Now, the CapEx slide I thought was good. It has a lot more color on there.

Paul Kurawa: Awesome. Thank you. That is really good color. Maybe just last two from me on capital. The CapEx slide I thought was good. It has a lot more color on there. I think the thing that sort of jumped out to me is you are talking to growth CapEx sort of coming to an end. If you look at your bars, your maintenance CapEx is much lower than your forward guidance suggests. Maybe just sort of squaring that away. I know you talked about a bit of catch-up spend. But just eyeballing that chart looks like there is a decent bit more to come.

Paul Koraua: Awesome. Thank you. That is really good color. Maybe just last two from me on capital. The CapEx slide I thought was good. It has a lot more color on there. I think the thing that sort of jumped out to me is you are talking to growth CapEx sort of coming to an end. If you look at your bars, your maintenance CapEx is much lower than your forward guidance suggests. Maybe just sort of squaring that away. I know you talked about a bit of catch-up spend. But just eyeballing that chart looks like there is a decent bit more to come.

Speaker #4: I think the thing that sort of jumped out to me is you had—you’re talking to growth CapEx sort of coming to an end.

Speaker #4: And if you look at your bars, your maintenance CapEx is much lower than your forward guidance suggests. Maybe you could just sort of square that away.

Speaker #4: I know you talked about a bit of catch-up spend, but just eyeballing that chart, it looks like there's a decent bit more to come.

Speaker #3: Yeah, we didn't break out FY27 into the buckets yet, mainly because we're still waiting to see exactly how online will play out. In those bars, the gray bar is the $10 million NZICC retention payment.

Callum Mallett: Yeah. We didn't break out FY27 into the buckets yet, mainly because we're still waiting to see exactly how online will play out. In those bars, the gray bar is the NZD 10 million NZICC retention payment. That is technically growth. It's the, hopefully, touch wood, the final payment on that investment. And then there is some, I'll call it lumpy/catch-up CapEx, particularly in Adelaide relating to the railway building. That building is an awesome, brilliant building, but it's old. And it needs some investment to keep it going, and that shows up why the gray bar is probably not what I'd call a normal year yet. But you'll see in the outer years, we're showing the direction of travel is some of that catch-up CapEx falls away.

Callum Mallett: Yeah. We didn't break out FY 2027 into the buckets yet, mainly because we're still waiting to see exactly how online will play out. In those bars, the gray bar is the NZD 10 million NZICC retention payment. That is technically growth. It's the, hopefully, touch wood, the final payment on that investment. And then there is some, I'll call it lumpy/catch-up CapEx, particularly in Adelaide relating to the railway building. That building is an awesome, brilliant building, but it's old. And it needs some investment to keep it going, and that shows up why the gray bar is probably not what I'd call a normal year yet. But you'll see in the outer years, we're showing the direction of travel is some of that catch-up CapEx falls away.

Speaker #3: That is technically growth. It's the hopefully touch wood the final payment on that investment. And then there is some I'll call it lumpy slash catch-up CapEx, particularly in Adelaide relating to the railway building.

Speaker #3: That building's an awesome, brilliant building. But it's old, and it just needs some investment to keep it going. And that shows up why the gray bar is probably not what I'd call a normal year yet.

Speaker #3: But you'll see in the outer years we're showing the direction of travel as some of that catch-up CapEx falls away. The other one that we're working through in real time, in conjunction with our cost-out program, is exactly what that level of expenditure might need to be to deliver the customer and process improvements.

Blair Woodbury: The other one that we're working through, in real time, in conjunction with our cost-out program, is exactly what that level of expenditure might need to be to deliver the customer and process improvements. Under accounting rules, it might slip between CapEx and OpEx, particularly if we start leveraging a lot more SaaS rather than in-house application development.

Speaker #3: Under accounting rules, it might slip between CapEx and OpEx, particularly if we start leveraging a lot more SaaS rather than in-house application development.

Speaker #4: Awesome, thanks. That makes a lot of sense. And then maybe just the last one from me—now, you talked to $275 million to $300 million of gross proceeds.

Paul Kurawa: Awesome. Thanks. That makes a lot of sense. And then maybe just the last one from me. You talked to 275 to 300 of gross proceeds. You now have said that you're looking at what you do with Adelaide. Potentially, if you think of divesting that asset, you could get to a point where you've got no interest-bearing debt or no debt at all on the balance sheet. And that can be a good thing. But I guess, from the market, what comfort can you give us that where those dollars go is in a place that can deliver the best risk-adjusted return for shareholders and not put in other places?

Paul Koraua: Awesome. Thanks. That makes a lot of sense. And then maybe just the last one from me. You talked to NZD 275 to 300 million of gross proceeds. You now have said that you're looking at what you do with Adelaide. Potentially, if you think of divesting that asset, you could get to a point where you've got no interest-bearing debt or no debt at all on the balance sheet. And that can be a good thing. But I guess, from the market, what comfort can you give us that where those dollars go is in a place that can deliver the best risk-adjusted return for shareholders and not put in other places?

Speaker #4: You have now said that you're looking at what you do with Adelaide. Potentially, if you think of divesting that asset, you could get to a point where you've got no interest-bearing debt, or no debt at all, on the balance sheet.

Speaker #4: And that can be a good thing. But I guess, from the market, what comfort can you give us that those dollars are going to a place that can deliver the best risk-adjusted return for shareholders and not be put elsewhere?

Speaker #3: Yeah, good call out. At this point, it's too early to say. For a start, we're just commencing the Adelaide review, so we don't know how that plays out.

Blair Woodbury: Yeah. Good call-out. At this point, it's too early to say. For a start, we're just commencing the Adelaide review, so we don't know how that plays out. And so therefore it would be presumptive of me to make any comments on what we may or may not do with the funds, given that that is very early in the process. And then, when we set out with the original NZD 200 million goal back in August last year, we didn't assume lower earnings related to Middle East conflict and lower discretionary spend. So once we get on the other side of the online license auction, once we get on the other side of completing The Grand by SkyCity hotel, I'll be sitting down with the board working out what are the right balance sheet settings moving forward. And we'll provide update to the market and investors at that time.

Speaker #3: And so, therefore, it would be presumptive of me to make any comments on what we may or may not do with the funds, given that it is very early in the process.

Speaker #3: And then, when we set out with the original $200 million goal back in August last year, we didn't assume lower earnings related to the Middle East conflict and lower discretionary spend.

Speaker #3: So once we get on the other side of the online license auction, once we get on the other side of completing the Grand Hotel, I'll be sitting down with the board, working out what are the right balance sheet settings moving forward.

Speaker #3: And we'll provide an update to the market and investors at that time.

Speaker #4: Awesome. Thanks, guys. I appreciate your time.

Paul Kurawa: Awesome. Thanks, guys. Appreciate your time.

Paul Koraua: Awesome. Thanks, guys. Appreciate your time.

Speaker #1: Thank you. We will now proceed to take our next question from the line of Adrian Albon from Jordan. Please ask your question, Adrian. Your line is open.

Operator: Thank you. We will now proceed to take our next question from the line of Adrian Allbon from Jarden. Please ask your question. Adrian, your line is open.

Speaker #5: Oh, good afternoon, team. I think we just crossed over. The first question, maybe it starts with Callum actually. Just focusing on Auckland, the drop that you noticed when with the Middle East and the fuel price, can you give us hopefully with the benefit of card at play, can you give us a sense of what sort of buckets of customers were the most affected?

Adrian Allbon: Good afternoon, team. I think we just crossed over. The first question, maybe it starts with Callum, actually. Just focusing on Auckland, the drop that you noticed with the Middle East and the fuel price. Hopefully with the benefit of Carded Play, can you give us a sense of what sort of buckets of customers were the most affected?

Speaker #3: Yeah. Hi, Adrian. Yes, very easily. It was mass gaming visitation from the local drive market, and it was number of visits. So, when they actually came, they were still spending the same time.

Callum Mallett: Yeah. Hi, Adrian. Yes, very easily. It was mass gaming visitation from the local drive market. It was number of visits. So when they actually came, they were still spending the same time and the same amount of money with us. They were just visiting less. So that is why the key initiatives we put into the market were around parking, and around F&B deals.

Speaker #3: And the same amount of money with us, but they were just visiting less. So that's why the key initiatives we put into the market were around parking and around F&B deals.

Speaker #5: Okay. So it wasn't necessarily so—to summarize that—it was the frequency of the visit and the mass, not the spend level. And once you sort of comp them with parking and F&B, they were happy to come back a little bit more frequently.

Adrian Allbon: Okay. To summarize that, it was the frequency of their visit and the mass, not the spend level.

Adrian Allbon: Okay. To summarize that, it was the frequency of their visit and the mass, not the spend level. And once you sort of comped them with parking and F&B, they were happy to come back a little bit more frequently.

Callum Mallett: Yeah

Adrian Allbon: comped them with parking and F&B, they were happy to come back a little bit more frequently.

Callum Mallett: Correct

Speaker #3: Correct.

Speaker #5: Okay. Just staying in this area, I know you haven't provided guidance, but if I kind of throw forward some building blocks that we might be thinking about, it feels like you're sort of fourth quarter EBITDA that you're sort of signaling is just short of 40 million.

Adrian Allbon: Okay. Just staying in this area, I know you haven't provided guidance, but if I throw forward some building blocks that we might be thinking about, it feels like your Q4 EBITDA that you're signaling is just short of NZD 40 million. You've said that that's a level that you're experiencing in the first quarter. So if I annualize that, we're talking at close to NZD 156 to 160, is the first building block. We can make a judgment as to how long that lasts. Is the cost out number of 30, is that a gross number or is that a net number?

Adrian Allbon: Okay. Just staying in this area, I know you haven't provided guidance, but if I throw forward some building blocks that we might be thinking about, it feels like your Q4 EBITDA that you're signaling is just short of NZD 40 million. You've said that that's a level that you're experiencing in the first quarter. So, if I annualize that, we're talking at close to NZD 156 to 160, is the first building block. We can make a judgment as to how long that lasts. Is the cost out number of 30, is that a gross number or is that a net number?

Speaker #5: And you've said that that's sort of a level that you're experiencing in the first quarter. So if I sort of annualize that, we're talking at close to, sort of, $156 to $160.

Speaker #5: Is the first building block, we can make a judgment as to how long that lasts. Is the cost-out number up 30? Is that a gross number, or is that a net number?

Speaker #3: It's a net number.

Blair Woodbury: It's a net number.

Speaker #5: Okay, cool. All right, so we're sort of at 40, speaking 185 to 190. Is there any other sort of building blocks going the other way, or that we should kind of be thinking about?

Adrian Allbon: Okay, cool. All right. So we are at, broadly speaking, 185 to 190. Is there any other building blocks going the other way or that we should be thinking about?

Adrian Allbon: Okay, cool. All right. So, we are at, broadly speaking, NZD 185 to 190 million. Is there any other building blocks going the other way or that we should be thinking about?

Speaker #3: Yeah. The big one, which we're uncertain about in terms of timing, is the online. So, as you could imagine, when the online market opens—and depending on how many months that is—we'll have a different profile of revenue and costs associated with that.

Blair Woodbury: Yeah, the big one which we are uncertain as to the timing is the online. As you can imagine, when the online market opens, and depending on how many months that is, we will have a different profile of revenue and cost associated with that. Like any new market opening, the first few months are expected to be a drag on earnings. That is the negative building block using your parlance.

Speaker #3: And like any new market opening, the first few months are expected to be a drag on earnings. So that's the negative building block, using your parlance.

Speaker #5: And just—sorry, just on that, I didn't think you... okay. So it might actually be open in the second half of this year, that's what you're saying?

Adrian Allbon: Sorry, just on that, I did not thank you. Okay, so it might actually be open in the H2 of this year, is what you are saying?

Speaker #3: Yes.

Blair Woodbury: Yes.

Speaker #2: Yeah, it actually has to be open, Adrian. The legislation requires licenses to be issued and all operators to be up and running by 1 June.

Jason Walbridge: Yeah, it actually has to be open, Adrian. The legislation requires licenses to be issued and all operators to be up and running by 1 June.

Jason Walbridge: Yeah, it actually has to be open, Adrian. The legislation requires licenses to be issued and all operators to be up and running by 1 June 2026.

Speaker #5: Okay. All right. So that's the other shout out that we should think about, just in that mix. Okay. Yeah, just in terms of a couple of housekeeping ones.

Adrian Allbon: Okay. All right. So that is the other shout-out that we should think about, just in that mix.

Jason Walbridge: Yeah, that is right.

Adrian Allbon: Just a couple of housekeeping ones. On the asset monetization, you have talked in gross proceeds. Do you have a crayon around any potential tax implications or like you have called out there, what the net proceed might be? What sort of-

Speaker #5: On the asset monetization, you've talked in gross proceeds. Do you have a sense—sort of a crayon around what sort of any potential tax implications you have called out there, or what the net proceed might be?

Speaker #5: What sort of leakage are we talking about?

Blair Woodbury: Yeah, so the-

Adrian Allbon: leaks are we talking?

Speaker #3: Yeah. The big tax bill, or depreciation clawback, is likely on the Grand. And so that is not a small number, given that the way we currently account for it is at sort of cost. We don't revalue the Grand—not all of the Grand.

Blair Woodbury: Yeah, the big tax bill or depreciation clawback is likely on The Grand. That is not a small number, given that the way that we currently account for it is at cost, that we do not revalue The Grand, not all of The Grand. There will be a tax bill. We are working through the quantum of that. We are working through other potential offsetting tax benefits that we might get from other transactions and the timing of the cash payment of that, more likely FY28, because it will show up in our FY27 tax returns. We are just working through that. Obviously, the structuring options come into transactions for how you might seek to minimize tax impost.

Blair Woodbury: Yeah, the big tax bill or depreciation clawback is likely on The Grand. That is not a small number, given that the way that we currently account for it is at cost, that we do not revalue The Grand, not all of The Grand. There will be a tax bill. We are working through the quantum of that. We are working through other potential offsetting tax benefits that we might get from other transactions and the timing of the cash payment of that, more likely FY 2028, because it will show up in our FY 2027 tax returns. We are just working through that. Obviously, the structuring options come into transactions for how you might seek to minimize tax impost.

Speaker #3: And so, there will be a tax bill. We're working through the quantum of that, and we're working through other potential offsetting tax benefits that we might get from other transactions.

Speaker #3: And the timing of the cash payment for that is more likely FY28 because it'll show up in our FY27 tax returns. So we're just working through that.

Speaker #3: Obviously, structuring options come into transactions for how you might seek to minimize tax imposts.

Speaker #5: Okay. So from our perspective, gross proceeds will largely flow into '27, and any leakage will happen in '28 on the tax side.

Adrian Allbon: Okay. From our perspective, gross proceeds will all largely flow into 2027, and any leakage will happen in 2028 on the tax side.

Speaker #3: On a cash basis, yes.

Blair Woodbury: On a cash basis, yes.

Speaker #5: Cash basis. Okay, yeah, cool. All right. Just in terms of the broader cost— in terms of the cost-out program growing to $70 million in '28, how does Adelaide feature in that number, or is it not in that number?

Adrian Allbon: Cash basis. Okay, yeah. Cool. All right. Just in terms of the broader cost, in terms of the cost out program growing to NZD 70 million in 2028, how does Adelaide feature in that number, or is it not in that number?

Speaker #2: Yeah. Adrian and Jason here. Yes, there is some cost savings that we anticipate from Adelaide. You will probably compute in the numbers we presented today that there's already been a significant cost-out effort in Adelaide as well.

Jason Walbridge: Yeah. Adrian, Jason here. Yes. There is some cost savings that we anticipate from Adelaide. You will probably compute in the numbers we presented today that there's already been a significant cost out effort in Adelaide as well.

Speaker #5: Okay. So that number, as it stands on this presentation, includes an Adelaide allocation?

Adrian Allbon: Okay. So that number, as it stands on this presentation, includes an Adelaide allocation.

Speaker #2: Yes. Though the majority of the cost outs that we're expecting are through '27 and '28 in New Zealand.

Jason Walbridge: Yes. Though the majority of the cost outs that we're expecting through 2027 and 2028 are in New Zealand.

Speaker #5: Okay, understood. Just a couple of other questions. In terms of the intention, assuming you get the proceeds in from the asset monetization, is the intention at the moment to just retire the retail bond in terms of a cash flow event?

Adrian Allbon: Okay. Understood. Just a couple other ones. Just in terms of the intention, assuming you get the proceeds in from the asset monetization, is the intention at the moment to just retire the retail bond in terms of a cash flow event?

Speaker #3: Yeah. Look, that's an option. The retail bond, or the New Zealand debt market, has been a good place for SkyCity over many years. So option A would be to go to zero.

Blair Woodbury: Yeah, look, that's an option. The retail bond or the New Zealand debt market has been a good place for SkyCity over many years. So, option A would be go to zero, option B might be stay in that market. It's easier to stay in. Makes it a little bit flexible in later years. Depending on quantum and timing, we've obviously got the U.S. Private Placements sitting there as well. So once we're firm on the level of funds available, we'll work through how we efficiently get to the right debt levels moving forward.

Blair Woodbury: Yeah, look, that's an option. The retail bond or the New Zealand debt market has been a good place for SkyCity over many years. So, option A would be go to zero, option B might be stay in that market. It's easier to stay in. Makes it a little bit flexible in later years. Depending on quantum and timing, we've obviously got the USPPs sitting there as well. So once we're firm on the level of funds available, we'll work through how we efficiently get to the right debt levels moving forward.

Speaker #3: Option B might be to stay in that market. It's easy to stay in, makes it a little bit flexible in later years. And then, depending on quantum and timing, we've obviously got the USPPs sitting there as well.

Speaker #3: So, once we're firm on the level of funds available, we'll work through how we efficiently get to the right debt levels moving forward.

Speaker #5: Okay, understood. So that's part of your later-in-the-year update, I suppose, in terms of that decision point.

Adrian Allbon: Okay. Understood. So that's part of your later in the year update, I suppose, in terms of that decision point.

Blair Woodbury: Correct.

Speaker #3: Correct.

Speaker #5: Just another one. I just noticed in the accounts, regarding Fletcher's and that contingent asset, you do highlight that you've got a trial date set for May 29.

Adrian Allbon: Just another one. I just noticed in the accounts regarding features and that contingent asset, you do highlight that you've got a trial date set for May 2029. Can you just give us an indication of what additional tick boxes you had to go through to get to that point?

Speaker #5: Can you just give us an indication of what additional, sort of, I guess, tick boxes you had to go through to get to that point?

Speaker #2: Yeah. The matter is before the courts, Adrian, so I can't share too much. The discovery process has been the most recent one.

Callum Mallett: Yeah, it's a matter before the courts, Adrian. I don't want to. Not possible to share too much. The discovery process has been the most recent one, then obviously setting that trial date. So it's something that's going to progress over time, with the trial now in 2029.

Speaker #2: And then obviously setting that trial date. So it's something that's going to progress over time, with the trial now in 2029.

Adrian Allbon: Just to sort of extend you a little bit. When you talk about the discovery process, is that more documentation that you've pushed into the process from your side?

Speaker #5: When you just sort of extend you a little bit, when you talk about the discovery process, is that more documentation that you've pushed into the process from your side?

Speaker #2: Oh, yeah. I mean, it's all part of the normal civil action that is the same for every single process. Yeah, so it really wouldn't be appropriate for me to go into more detail for something that's pending at the moment.

Callum Mallett: Oh, yeah. It's all part of the normal civil action that is same for every single process. Yeah. So it really wouldn't be appropriate for me to go into more detail for something that's pending at the moment.

Speaker #5: Okay, no problem. Very good. Thanks for answering my questions.

Adrian Allbon: Okay, no problem. Very good. Thanks for my questions. Thank you. As a reminder, before we move to our next question, please press star one one if you wish to ask a question. We will now proceed to take our next question. The question comes from the line of Marcus Curley from UBS. Please ask your question, Marcus. Your line is open.

Speaker #1: Thank you. As a reminder, before we move to our next question, please press star 11 if you wish to ask a question. We will now proceed to take our next question.

Speaker #1: And now a question comes from Marcus Coley from UBS. Please ask your question, Marcus. Your line is open.

Speaker #4: Good afternoon, gents. I'll try and be quick. You had negative revenue in your premium play. Could you just give us a feel for what the normalized revenue is, and how you think about that business heading into this year?

Marcus Curley: Good afternoon, gents. I will try and be quick. You had negative revenue in your premium play. Could you just give us a feel of what the normalized revenue is and how you think about that business heading into this year?

Speaker #3: Yeah. Hi Marcus, it's Callum here. Yeah, look, that was a tough year, obviously. As you'd know, we've...

Callum Mallett: Yeah. Hi, Marcus. It is Callum here. Look, that was a tough year, obviously. As you would know, we made some pretty demonstrable changes in that area of the business. Best thing to do probably is to look forward and say that we think it is a business we want to be in, albeit we will continue to tread carefully and cautiously. We are focused on growing the number of players in that area. Obviously, as I say cautiously across the last 12 months, we probably have not had the level of play that we would like to see moving into. Please remain on the line. Your conference will resume shortly. Please remain on the line. Your conference will resume shortly. On the line. Your conference will resume shortly. Ladies and gentlemen, please remain on the line. Your conference will resume shortly. Ladies and gentlemen, please remain on the line.

Speaker #1: Made some pretty demonstrable changes in that area of the business , and the best thing to do , probably , is to look forward and say , you know , that we think it's a business , we want to be in , albeit we will continue to tread carefully and cautiously , and we are focused on growing the the number of players in that area You know , obviously , as I say , cautiously , across the last 12 months , we probably haven't had the level of play that we'd like to see moving into

Speaker #2: Please remain on the line . Your conference will resume shortly . Please remain on the line . Your conference will resume shortly In in the line .

Operator: Please remain on the line. Your conference will resume shortly. Please remain on the line. Your conference will resume shortly. On the line. Your conference will resume shortly. Ladies and gentlemen, please remain on the line. Your conference will resume shortly. Ladies and gentlemen, please remain on the line, your conference will resume shortly. Please remain on the line. Your conference will resume shortly. Please remain on the line. Your conference will resume shortly. Please remain on the line. Your conference will resume shortly. Please remain on the line. Your conference will resume shortly. The conference will resume shortly. Please remain on the line. Shortly. Please remain on the line.

Speaker #2: Your conference will resume shortly. Ladies and gentlemen, please remain on the line. Your conference will resume shortly. Ladies and gentlemen, please remain on the line.

Speaker #2: Your conference will resume shortly. Please remain on the line. Your conference will resume shortly. Please remain on the line. Your conference will resume shortly. Please remain on the line.

Callum Mallett: Your conference will resume shortly. Please remain on the line. Your conference will resume shortly. Please remain on the line. Your conference will resume shortly. Please remain on the line. Your conference will resume shortly. Please remain on the line. Your conference will resume shortly. The conference will resume shortly. Please remain on the line. Shortly. Please remain on the line.

Speaker #2: Your conference will resume shortly. Please remain on the line. Your conference will resume shortly. The conference will resume shortly. Please remain on the line. Shortly.

Speaker #2: Please remain on the line. Your conference will resume shortly. Please remain on the line. We have the speakers back. Please continue.

Operator: Your conference will resume shortly. Please remain on the line. We have the speakers back. Please continue.

Jason Walbridge: Callum was talking about. Hi, everyone. Jason and Blair here. We are back again. Apologies for that. We genuinely do not know what is going on with the tech, but it keeps dropping us at this end. Callum has had to step away. Was it Marcus? I think we were partway through answering your question. Are you there, Marcus?

Blair Woodbury: Callum was talking about.

Speaker #1: Hi , everyone . Jason and Blair here . We're back again . Apologies for that . We genuinely don't know what's going on with the tech , but it keeps dropping us at this end .

Jason Walbridge: Hi, everyone. Jason and Blair here. We are back again. Apologies for that. We genuinely do not know what is going on with the tech, but it keeps dropping us at this end. Callum has had to step away. Was it Marcus? I think we were partway through answering your question. Are you there, Marcus?

Speaker #1: So Callum's had to step away, and was it Marcus? I think we were partway through answering your question. Are you there, Marcus?

Speaker #3: I am

Marcus Curley: I am.

Speaker #1: Yeah, sorry about that, mate. Do you want to just go again?

Jason Walbridge: Yeah. Sorry about that, mate. Do you want to just go again?

Speaker #3: Yeah, sure. I was just asking about the outlook for the premium play business for this year.

Marcus Curley: Yeah, sure. I was just asking about the outlook for the premium play business for this year.

Speaker #1: Oh , yeah . Yeah . Look , not where we want to be today . We're . We definitely want to be in the segment column and the team are looking at opportunities that we have there .

Jason Walbridge: Oh, yeah. Yeah, look, not where we want to be today. We definitely want to be in the segment. Callum and the team are looking at the opportunities that we have there. We are obviously approaching that through the framework of our new regulatory settings. That will mean that it continues to be a modest segment earner for us, but an important one that we want to be in.

Speaker #1: We're obviously . Approaching that through the framework of our new regulatory settings . And so that that will mean that it continues to be , you know , a modest segment earner for us , but an important one that we want to be in

Speaker #3: Thanks. Secondly, could you just give us, you know, a view on what the total NZ ICC losses were within the result that you've just reported at the EBITDA line?

Marcus Curley: Thanks. Secondly, could you just give us a view on what the total NZICC losses were within the result that you have just reported at the EBITDA line?

Speaker #4: We don't have that out individually. It's part of the Auckland segment. It's measured in single millions. And for the financial year, we had what you'd call pre-opening costs, which is just making sure it's all set up and ready to go.

Jason Walbridge: We do not carve that out individually. It is part of the Auckland segment. It is measured in single millions. For FY26, we had what you would call pre-opening costs, which is just making sure it is all set up and ready to go. A lot of testing that does not repeat. So we expect to see those, obviously do not have pre-opening costs again. Then as trading, as we fill it up, then those losses dissipate, and we expect to be at a break-even point in FY28.

Jason Walbridge: We do not carve that out individually. It is part of the Auckland segment. It is measured in single millions. For FY 2026, we had what you would call pre-opening costs, which is just making sure it is all set up and ready to go. A lot of testing that does not repeat. So we expect to see those, obviously do not have pre-opening costs again. Then as trading, as we fill it up, then those losses dissipate, and we expect to be at a break-even point in FY 2028.

Speaker #4: A lot of testing that doesn't repeat . So we expect to see those obviously don't have pre-opening costs . Again . And then as trading as we fill it up , then the those losses dissipate and we expect us to be at a break even point in FY 28 .

Speaker #3: From memory, I think it might have been before your time. I thought there was about $5 million of pre-opening costs in the first half alone.

Marcus Curley: From memory, I think, and it might have been before your time, I thought there was about NZD 5 million of pre-opening costs in the H1 alone.

Jason Walbridge: That sounds right. I will come back to you, Marcus, and check that.

Speaker #4: That sounds right. I will come back to you, Marcus, and check that.

Speaker #3: Sure . Like suppose in terms of your as Adrian's terminology , you bridge for next . For this year coming . Obviously the the the move from EBITDA loss to modest EBITDA loss in the NZ .

Marcus Curley: Sure. I suppose in terms of your, as Adrian's terminology, your bridge for this year coming. Obviously, the move from EBITDA loss to modest EBITDA loss in the NZICC is also a pretty material change. So having an understanding of how much it lost this year would be useful. Then just finally, just on the revaluation of Adelaide, am I right when I look at the accounts that they have valued at. Sorry. Write this down.

Speaker #3: ICC is also a pretty material change. So having an understanding of how much it lost this year would be useful. And then, just finally, on the revaluation of Adelaide.

Speaker #3: And am I right? When I look at the accounts that they have valued at—oh, sorry. Write this down.

Jason Walbridge: Are you there, Marcus?

Speaker #5: Here , Marcus .

Marcus Curley: Yeah, sorry. Maybe while I find it. Could you just confirm that the valuation that they did, the independent valuation on Adelaide excluded the tax losses in that business?

Speaker #3: Yes . Sorry . Maybe . Maybe . Well , I find it . Could you just confirm that the valuation that they did , the independent valuation on the on Adelaide excluded the tax losses in that business

Speaker #4: Yeah . So the the valuation we had performed was in accordance with the accounting rules . A very specific . And you have to use a cash tax based calculation .

Jason Walbridge: Yeah. The valuation we had performed was in accordance with the accounting rules. They are very specific. You have to use a cash tax-based calculation. We were not allowed to recognize the value of that tax losses in the valuation.

Speaker #4: So we weren't allowed to recognise the value of those tax losses in the valuation.

Speaker #3: And the valuation was $119 million to $173 million NZD.

Marcus Curley: The valuation was NZD 119 to NZD 173 million.

Marcus Curley: The valuation was NZD 119 to 173 million.

Speaker #4: Aussie No that's Aussie .

Jason Walbridge: Aussie. No, that is Aussie.

Jason Walbridge: Aussie.

Jason Walbridge: No, that is Aussie.

Marcus Curley: Aussie dollars.

Speaker #3: Aussie dollars. Yep. Okay. And the tax losses at the moment inside of Adelaide—

Marcus Curley: AUD.

Jason Walbridge: Yep.

Marcus Curley: Okay. The tax losses at the moment inside of Adelaide?

Speaker #4: Big way over. Way over 150. I think the number's roughly 180 million of losses available.

Jason Walbridge: Big. Way over 150. I think the number is roughly 180 million of losses available.

Jason Walbridge: Big. Way over NZD 150 million. I think the number is roughly NZD 180 million of losses available.

Speaker #3: And the assumptions in the valuation included an 18% impact from carded play on uncarded revenues. Could you just give me an estimate of what proportion of Adelaide's revenue today is currently uncarded?

Marcus Curley: The assumptions and the valuation included -18% impact from Carded Play on uncarded revenues.

Marcus Curley: The assumptions and the valuation included -18% impact from carded play on uncarded revenues.

Jason Walbridge: Correct.

Marcus Curley: Could you just give me an estimate of what proportion of Adelaide's revenue today is currently uncarded?

Speaker #4: I don't have that precise number to hand. As you can imagine, the rules in Australia are a little bit different than here in New Zealand, for a couple of reasons.

Jason Walbridge: I don't have that precise number to hand. As you can imagine, the rules in Australia are a little bit different than here in New Zealand for a couple of reasons. One is 18-year-olds are allowed into casinos, and it's 20 here in New Zealand. So the uncarded proportion is quite high at the moment. It is, I'd call it the majority, and the 17.5%, probably presuppose your next answer is that's just the midpoint and similar to what we experienced here in New Zealand.

Speaker #4: One is 18 year olds are allowed into casinos and it's 20 here in New Zealand and New Zealand . So the uncharted proportion is quite high at the moment .

Speaker #4: It is—I'd call it the majority. And the 17.5% probably presupposes your next answer, that that's just the midpoint, and similar to what we experienced here in New Zealand.

Marcus Curley: For sure. But I was just trying to get

Speaker #3: We can come back to that.

Speaker #1: Yeah .

Jason Walbridge: Yeah. We'll come back to you that.

Speaker #3: We'll .

Speaker #1: I'll come back to you on that.

Speaker #3: Yep .

Marcus Curley: Yep.

Jason Walbridge: AP premium play is carded, albeit manually. It's really the main gaming floor that's uncarded today.

Speaker #1: P premium play is carded , albeit manually . It's really the main gaming floor that's uncovered today . All right . We've just got one last question .

Marcus Curley: All right.

Jason Walbridge: We have just got one last question.

Speaker #1: I think, on the line from Kieran Marcus, we'll come back to you on those details if that's okay.

Jason Walbridge: Okay

Jason Walbridge: I think on the line from Kieran. Marcus, we will come back to you on those details, if that is okay.

Speaker #3: Sure . No problem

Marcus Curley: Sure, no problem.

Speaker #2: Okay. We will move on to our next question from the line of Kieran, calling from Craigs Investment Partners. Please ask your question.

Operator: We will move on to our next question from the line of Kieran Carling from Craigs Investment Partners. Please ask your question, Kieran. Your line is open.

Speaker #2: Kieran, your line is open.

Speaker #6: Oh good afternoon guys . I'll keep it fairly quick because most of these topics have been covered . But you know , I know you're not too keen to get into the weeds on the cost out targets , but just are you able to step through kind of , roughly speaking , what the the 30 million is made up of just in terms of the headcount reduction and kind of other components as well .

Kieran Carling: Good afternoon, guys. I will keep it fairly quick because most of these topics have been covered. I know you are not too keen to get into the weeds on the cost out targets, but are you able to step through, roughly speaking, what the NZD 30 million is made up of, just in terms of the headcount reduction and other components as well? I just want to try to understand what you actually have to achieve to hit those numbers in 2027 and 2028.

Speaker #6: I just want to try to understand what you actually have to achieve to hit those numbers—numbers in '27 and '28.

Speaker #1: Yeah . Hey , Kieran . Good morning . Jason here . Yeah . I'll be happy to give you a little bit of color in FY 27 .

Jason Walbridge: Yeah. Hey, Kieran. Good morning. Jason here. Yeah, happy to give you a little bit of color. In FY27, the majority of the realized benefits will come from the organizational changes that we have spoken to. Then growing into FY28, that uplift will be more from external spend, process improvement, and revenue.

Speaker #1: The majority of the realized benefits will come from the organizational changes that we've spoken to. And then, growing into FY28, that uplift will be more from external spend process improvement and revenue.

Speaker #6: Okay . That's helpful . Thanks . And then just to touch on one of the earlier questions on the online market , you know , if the if it is as big as you say , you know , $1 billion plus , you know , would you not expect your revenue for that division to be more than 3 million even under the current regulatory settings ?

Kieran Carling: Okay. That is helpful. Thanks. Just to touch on one of the earlier questions on the online market. If it is as big as you say, NZD 1 billion plus, would you not expect your revenue for that division to be more than NZD 3 million, even under the current regulatory settings? I guess what I am getting at is, how much additional investment do you think is required to get your product on par with what competitors are offering?

Speaker #6: I guess what I'm getting at is, you know, how much additional investment do you think is required to get your product on par with what competitors are offering?

Speaker #1: Yeah. The performance of the business today isn't necessarily reflective of the product offering or experience we're providing customers. It's more reflective of the fact that we're not able to advertise.

Jason Walbridge: The performance of the business today isn't necessarily reflective of the product offering or experience we're providing customers. It's more reflective of the fact that we're not able to advertise, and there are operators in the gray market who are advertising. That's why and how the market is growing, and hence why the government wants to regulate it, to exit those operators that have been operating illegally.

Speaker #1: And there are operators in the grey market who are advertising. So that's why and how the market is growing, and hence why the government wants to regulate it—to exit those operators that have been operating illegally.

Speaker #6: Okay, that's all good. I might just wrap it up there.

Kieran Carling: Okay. That's all good. I might just wrap it up there. Cheers.

Speaker #1: Thank you. Thanks, Karen.

Operator: Thank you.

Jason Walbridge: Thanks, Kieran.

Speaker #2: I'm showing no further questions. Thank you all very much for your questions. I'll now turn the conference back to Jason for his closing comments.

Operator: I am showing no further questions. Thank you all very much for your questions. I will now turn the conference back to Jason for his closing comments.

Speaker #1: All right . Well , thank you , everyone for your questions and ongoing interest in SkyCity this morning . Much appreciated . And apologies for the disruptions that we've had with the connection Preciate it .

Jason Walbridge: Well, thank you everyone for your questions and ongoing interest in SkyCity this morning. Much appreciated. And apologies for the disruptions that we have had with the connection. Appreciate it. And look forward to catching up and meeting with many of you over the coming days and into next week. Thanks very much.

Speaker #1: And I look forward to catching up and meeting with many of you over the coming days and into next week. Thanks very much.

Operator: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect your lines.

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Q4 2026 SkyCity Entertainment Group Ltd Earnings Call

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