New Zealand Professional Investment Services Firm, Forsyth Barr

Forsyth Barr

New Zealand Professional Investment Services Firm

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

Equity Bottom-Up

<ul><li>SkyCity (SKC) will report a subdued period of trading at its 1H24 result on 22 February 2024.</li><li>The company downgraded FY24 earnings guidance in early December 2023, citing cost-of-living pressures on consumers and a further deterioration at its Adelaide casino.</li><li>With economic headwinds likely to continue during 2H24, a reaffirmation of its FY24 earnings guidance would be a positive outcome for SKC.</li></ul>

SkyCity (SKC) will report a subdued period of trading at its 1H24 result on 22 February 2024.The company downgraded FY24 earnings guidance in early December 2023, citing cost-of-living pressures on consumers and a further deterioration at its Adelaide casino.With economic headwinds likely to continue during 2H24, a reaffirmation of its FY24 earnings guidance would be a positive outcome for SKC.

SkyCity  - Uncertain Horizon — 1H24 Preview

<ul><li>The Department of Internal Affairs (DIA), NZ’s gambling regulator, intends to commence civil penalty proceedings against SkyCity (SKC) due to its alleged non-compliance with the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (AML/CFT Act). </li><li>This is similar to the action taken by AUSTRAC (the Australian financial crimes regulator) against SkyCity Adelaide and other Australian casinos over the past couple of years.</li><li>The maximum penalty that SKC faces is just NZ$8m (amounting to 1c per share). This is tiny in the context of SKC’s current regulatory discount implied in its share price. </li></ul>

The Department of Internal Affairs (DIA), NZ’s gambling regulator, intends to commence civil penalty proceedings against SkyCity (SKC) due to its alleged non-compliance with the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (AML/CFT Act). This is similar to the action taken by AUSTRAC (the Australian financial crimes regulator) against SkyCity Adelaide and other Australian casinos over the past couple of years.The maximum penalty that SKC faces is just NZ$8m (amounting to 1c per share). This is tiny in the context of SKC’s current regulatory discount implied in its share price. 

<ul><li>SkyCity (SKC) and the AUSTRAC (Australian Transaction Reports and Analysis Centre) have agreed SKC will pay a fine of ~A$67m due to its alleged contraventions of the Anti-Money Laundering and Counter-Terrorism Financing Act (AML/CTF Act) at its Adelaide casino.</li><li>After almost three years of enhanced regulatory scrutiny, the announcement is a positive outcome for SKC with the fine modestly lower than our expectations, though other regulatory risks with potentially larger valuation implications remain. Retain NEUTRAL.</li><li>SKC's total provision for the AUSTRAC fine and associated cost is A$73m. Assuming ~A$6m of legal costs (SKC is required to pay for AUSTRAC's as well as its own), the fine amounts to ~A$67m</li></ul>

SkyCity (SKC) and the AUSTRAC (Australian Transaction Reports and Analysis Centre) have agreed SKC will pay a fine of ~A$67m due to its alleged contraventions of the Anti-Money Laundering and Counter-Terrorism Financing Act (AML/CTF Act) at its Adelaide casino.After almost three years of enhanced regulatory scrutiny, the announcement is a positive outcome for SKC with the fine modestly lower than our expectations, though other regulatory risks with potentially larger valuation implications remain. Retain NEUTRAL.SKC's total provision for the AUSTRAC fine and associated cost is A$73m. Assuming ~A$6m of legal costs (SKC is required to pay for AUSTRAC's as well as its own), the fine amounts to ~A$67m

SkyCity - Light Peeks Through Regulatory Clouds in Sky

<ul><li>SkyCity's (SKC) historically defensive and resilient gaming earnings are beginning to show cracks from the weakening consumer environment in New Zealand and Australia.</li><li>The company now expects EBITDA to decline year-on-year in FY24, a change from its prior guidance of a modest increase.</li><li>The impact on NPAT from a reduction in gaming revenue is partially mitigated by lower than expected interest costs. </li></ul>

SkyCity's (SKC) historically defensive and resilient gaming earnings are beginning to show cracks from the weakening consumer environment in New Zealand and Australia.The company now expects EBITDA to decline year-on-year in FY24, a change from its prior guidance of a modest increase.The impact on NPAT from a reduction in gaming revenue is partially mitigated by lower than expected interest costs. 

SkyCity - Taking Some Chips Off the Table

<ul><li>The Department of Internal Affairs (DIA) is making an application to the Gambling Commission to temporarily suspend SkyCity’s (SKC) NZ casino license.</li><li>The application will seek a suspension for a period “in the range of 10 days” compared to a maximum suspension of six months under the Gambling Act 2003.</li><li>This would mean the gambling operations at all of its NZ properties (Auckland, Hamilton and Queenstown) would be closed during the suspended days if the industry's ruling body, the Gambling Commission, decided in favour of the DIA’s application.</li></ul>

The Department of Internal Affairs (DIA) is making an application to the Gambling Commission to temporarily suspend SkyCity’s (SKC) NZ casino license.The application will seek a suspension for a period “in the range of 10 days” compared to a maximum suspension of six months under the Gambling Act 2003.This would mean the gambling operations at all of its NZ properties (Auckland, Hamilton and Queenstown) would be closed during the suspended days if the industry's ruling body, the Gambling Commission, decided in favour of the DIA’s application.

SkyCity - Regulatory Risk Eating More Chips

Australia

Collins Foods Ltd. operates fast-food restaurants.  The Company operates chains of steak and chicken restaurants in Australia.

Jumbo Interactive Limited develops e-commerce and online retailing technologies. The Company also operates a web site that offers Australian lottery tickets for purchase online as well as distributes a wide range of software products.

The Star Entertainment Group Limited owns and operates casinos and hotels. The Company offers services and amenities such as gaming facilities, nightclubs, bars, restaurants, exhibition centers. The Star Entertainment Group conducts business in Australia.

Tabcorp Holdings Limited operates as a holding company. The Company, through its subsidiaries, provides gambling, gaming, wagering, and entertainment services. Tabcorp Holdings serves customers in Australia and in the United Kingdom.

Helloworld Travel Limited operates as a travel company. The Company provides corporate travel management services to corporate and government customers including booking flights, cruises, and accommodation. Helloworld Travel serves customers worldwide.

Ainsworth Game Technology Limited designs, develops and manufactures gaming machines and games combination software and other related equipment for the gaming industry in Australia. Products include the Ambassador video gaming machines, video games and Embassy Jackpot systems.

Retail Food Group Ltd is a retail food brand manager and franchiser. The Company currently manages donut stores and cafes.

Elanor Investor Group is an investment and funds management business. The Company diversifies its investments within funds management, hotels and leisure, and special situation investments.

Reef Casino Trust operates The Reef Hotel Casino Complex in Cairns, North Queensland.  The complex includes a 128-room hotel, nightclub, a conservatory, a gaming area, lounge and bar, restaurants and conference facilities.

Corporate Travel Management Ltd. offers corporate travel management services. The Company operates on a fee for service model and provides business travel advice and services; bookings; ticketing, and ancillary services; and offers travel data diagnostics and recommendations.

PLENUS Co., Ltd. sells take-out boxed meals through a franchise system as well as operates Japanese restaurants.  The Company also sells foodstuff, packaging material, and business uniforms.

LiJiang YuLong Tourism Co., Ltd. provides travel services in Lijiang, Yunnan. The Company provides cableway transportation, bus transportation, food and beverages services, and other related tourism services.

Hna-Caissa Travel Group is in the business of public transportation catering service, including airline catering and railway catering services. It also provides hotel catering services.

Ruth's Hospitality Group Inc. operates a chain of upscale steak houses. The Company's restaurants are located throughout the United States and in several international locations.

ARCLAND SERVICE CO., LTD. operates a restaurant chain based in Tokyo. The Company mainly serves pork cutlets and barbecue.

Cafe De Coral Holdings Limited, through its subsidiaries, operates quick service restaurants, fast casual dining, institutional catering and specialty restaurant chains, and food manufacturing business.

HIDAY HIDAKA Corp. operates a chain of Oriental noodle and Chinese restaurants mainly in Saitama Prefecture.  The Company produces noodles, soup, and dumplings at its own factory.

DOUTOR NICHIRES Holdings Co., Ltd is establish through merger of DOUTOR COFFEE and NIPPON RESTAURANT SYSTEM.  The Company operates a coffee shop and restaurant chain. DOUTOR NICHIRES manages all business operations, from producing and procuring coffee beans to roasting, wholesaling, and retailing.

Biglari Holdings Inc. operates as a holding company. The Company, through its subsidiaries, invests in food and insurance companies. Biglari Holdings serves clients in the State of Texas.

Hana Tour Service Inc. wholesales a variety of travel related services.  The Company provides outbound, inbound and domestic travel packages and cooperates with credit card companies and Internet shopping malls to market its services. Hana Tour Service also works as general sales agency (GSA) of overseas cruise and rail passes.

SKYCITY Entertainment Group Ltd. provides gaming and casino services. The Company offers various casinos accompanied with various bars, hotels, restaurants, and convention centers. SKYCITY Entertainment Group offers services in Australia and New Zealand.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Skycity Entertainment (SKC AU)

SkyCity - Uncertain Horizon — 1H24 Preview

With economic headwinds likely to continue during 2H24, a reaffirmation of its FY24 earnings guidance would be a positive outcome for SKC.

Forsyth Barr

SkyCity - DIA No Longer MIA

The Department of Internal Affairs (DIA), NZ’s gambling regulator, intends to commence civil penalty proceedings against SkyCity (SKC) due to its...

Forsyth Barr

SkyCity - Light Peeks Through Regulatory Clouds in Sky

SKC's total provision for the AUSTRAC fine and associated cost is A$73m. Assuming ~A$6m of legal costs (SKC is required to pay for AUSTRAC's as...

Forsyth Barr

SkyCity - Taking Some Chips Off the Table

SkyCity's (SKC) historically defensive and resilient gaming earnings are beginning to show cracks from the weakening consumer environment in...

Forsyth Barr

SkyCity - Regulatory Risk Eating More Chips

The Department of Internal Affairs (DIA) is making an application to the Gambling Commission to temporarily suspend SkyCity’s (SKC) NZ casino license.

Forsyth Barr

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)