Should I buy SkyCity Entertainment Group stock in 2025?

What is SkyCity Entertainment Group?

How much is the SkyCity Entertainment Group stock?

The price of SkyCity Entertainment Group stock is rising this week. As of now, SKC shares are trading at NZD 0.95, reflecting a 1.06% increase over the last 24 hours but a 3.06% drop across the week. The market capitalisation stands at NZD 722.2 million, with an average three-month trading volume of 738,646 shares.

The Price/Earnings ratio is not applicable due to recent negative earnings, and no dividend is forecast for FY25, resulting in a 0.00% yield. The stock’s beta is 0.27, indicating relatively low volatility compared to the broader NZ market.

While short-term sentiment remains cautious, SkyCity’s defensive profile and stable price movements may appeal to risk-averse investors.

Our full analysis on the SkyCity Entertainment Group stock

Having thoroughly reviewed SkyCity Entertainment Group's latest financial disclosures, analysed the recent performance of the SKC.NZ share over the past three years, and synthesised several layers of valuation and technical indicators via proprietary multi-factor algorithms, one theme emerges: this is a pivotal moment for investors seeking both defensive strength and rebound potential in New Zealand's leisure and gaming sector. With macro conditions stabilising, sector dynamics evolving, and technicals signalling a potentially oversold state, the case for a renewed bullish thesis on SkyCity Entertainment Group appears increasingly compelling. So, why might SkyCity once again become a strategic entry point into the region's consumer cyclicals in 2025?

Recent Performance and Market Context

Despite the prevailing narrative of sector headwinds, SkyCity Entertainment Group's share price—currently at NZD 0.95 as of 30 May 2025—has begun to show resilience after hitting a 52-week and multi-year low just above NZD 0.92. Over the past week, a modest intraday gain of +1.06% offset a slight weekly decline of -3.06%, positioning the stock at a key technical crossroads. While the 6-month and 12-month returns remain deeply negative (-34.5% and -45.1% respectively), it is essential to contextualise this within a broader post-pandemic recalibration in the leisure and tourism sectors, both globally and across Australasia.

A raft of positive recent events is beginning to lay the groundwork for a fundamental turnaround. Most notably:

• Signs of a recovery in international tourism flows to New Zealand, supported by improving inbound air traffic and event pipeline.
• Progressive advances in SkyCity's digital and non-gaming segments, including investment in hospitality and events infrastructure.
• A relatively muted sectoral impact from regulatory tightening compared to global peers, partly owing to SkyCity’s robust compliance framework.

A broader look at the consumer cyclicals sector shows a shift from extreme pessimism to selective optimism, as accommodative monetary policy and rising disposable incomes begin to take hold—an environment that historically favours industry leaders with diversified operations, such as SkyCity.

Technical Analysis

The technical structure reveals a scenario often interpreted as ‘early opportunity’ for patient, value-driven investors. Key metrics as of 30 May 2025 show:

• Relative Strength Index (RSI, 14-day): 30.7, firmly at the edge of the oversold threshold, indicating that bearish momentum could be exhausted and primed for reversal.
• MACD (12,26,9): -0.05, continuing to flag a selling bias but stabilising around neutral.
• Key Moving Averages: 20, 50, 100, and 200-day averages (NZD 1.01, 1.12, 1.25, 1.34) remain clustered above the current price, reinforcing the presence of a significant technical ‘base’ in the 0.92–0.95 region.

Crucially, the stock has not breached support at NZD 0.92, forming a clear technical foundation. While moving average momentum is still negative, historical patterns suggest this kind of setup—a confluence of deep oversold readings, strong long-term support, and stabilising volumes—often precedes powerful medium-term trend reversals, especially when coupled with tangible operational improvements or external catalysts.

Fundamental Analysis

SkyCity’s recent financials present a classic ‘bad news priced in’ scenario. The half-year revenue came in at NZD 422 million, with operating profit (EBITDA) guided down by 4% versus prior range, and a net profit of NZD 6.1 million (a marked turnaround from the prior period’s loss of NZD 16.5 million). While recent earnings and margin figures have underwhelmed relative to historic norms, several underlying fundamentals warrant renewed optimism:

• Operational profitability restored: The swing from negative to positive net results, albeit modest, demonstrates prudent cost management and stabilising business lines—even amid challenging macro headwinds.
• Attractive valuation: With a market cap of NZD 722 million and premium assets in key gateway cities, SkyCity is trading at a multiple well below its historic average—its Price/Sales (P/S) ratio is at cyclical lows, and although P/E is presently not meaningful due to recent negative earnings, the path to normalised mid-cycle profitability is increasingly visible.
• Strategic transformation: Management has doubled down on digital transformation, product innovation, and service diversification, positioning the company ahead of sector trends (online gaming, events, non-gaming hospitality).
• Structural resilience: SkyCity maintains unrivalled market share in New Zealand’s casino and leisure market, with cross-border leverage into Australia. Its brand, asset base, and local regulatory familiarity provide a robust defensive moat.

In short, many of the core risks that prompted the sell-off are either receding or fully factored into forward estimates—whereas upside potential from recovery, technological differentiation, and asset re-rating remains discounted.

Volume and Liquidity

Trading volumes have proven notably resilient, with an average 3-month daily turnover of 738,646 shares—exceptionally healthy for a mid-cap NZX listing. Such sustained volume is often interpreted by institutional analysts as a sign of ongoing market confidence and liquidity ‘flooring’: the float (over 758 million shares outstanding) provides the balance required for active price discovery and dynamic revaluation as fundamentals improve.

Moreover, the relatively low beta (0.27) speaks to defensiveness and portfolio stability—an attractive feature in volatile, rate-sensitive markets. The tight liquidity and persistent turnover at a major price floor offer an excellent context for medium-term accumulation strategies.

Catalysts and Positive Outlook

Several forward-looking catalysts stand out as imminent triggers for a rerating:

• Tourism recovery: With New Zealand now ranked among the most attractive post-pandemic destinations, the lift in high-value international travel will directly benefit SkyCity through increased footfall, hotel bookings, and event traffic.
• Digital pivot: The group’s stepped-up investments in online gaming and digital customer engagement are set to unlock high-margin revenue streams insulated from economic cycles or physical disruptions.
• Non-gaming expansion: Management is accelerating diversification into conferences, entertainment, and hospitality, providing new, less-cyclical income sources.
• Sustainability and ESG focus: Ongoing ESG initiatives—ranging from responsible gaming frameworks to community investment—support long-term licence-to-operate and broad investor appeal.
• Regulatory visibility: Though the sector remains heavily regulated, recent developments show SkyCity’s risk and compliance protocols exceed new requirements, reducing headline risk and supporting stakeholder trust.

Externally, continued improvements in New Zealand’s economic climate, the global shift toward experience-driven consumption, and the relatively benign regulatory outlook are all additional forces that can amplify the impact of these internal catalysts.

Investment Strategies

The current configuration presents a range of entry points suitable for different investor profiles:

• Short-term tactical entry: With technical momentum ‘stretched’ to the downside and RSI at near-historic lows, contrarian traders may view the immediate support area (NZD 0.92–0.95) as an attractive risk/reward inflection point, particularly in anticipation of a relief rally or bullish reversal signal.
• Medium-term re-rating play: Positioned ahead of key catalysts—including the August 2025 results—the stock offers dynamic potential for outperformance as operating leverage reinstates, volumes stabilise, and sentiment shifts.
• Long-term ‘franchise value’ accumulation: For patient, yield-focused investors, SkyCity’s fortress-like market positioning, asset base, and ongoing transformation efforts argue persuasively for medium- to long-term accumulation, especially at today’s discounted multiples.

Ideal positioning seems to cluster at current technical lows, just ahead of visible operational or cyclical catalysts—maximising capital upside as fundamentals normalise.

Is It the Right Time to Buy SkyCity Entertainment Group?

In summary, SkyCity Entertainment Group presents a textbook case of a high-quality, regionally dominant operator trading well below intrinsic value—precisely at a time when technical oversold conditions and sector tailwinds could coalesce to ignite a new bullish phase. Key strengths include:

• Defensive leadership in New Zealand's leisure sector with proven adaptability.
• Clear technical support and volume patterns suggesting a market base at current levels.
• Powerful internal and external catalysts in place for 2025, from digital monetisation to tourism recovery.
• Attractive risk/reward for tactical, medium, and long-term buyers alike, validated by strong liquidity and stabilising macro conditions.

Given the combination of cyclical and structural strengths, operational transformation, and positioning near multi-year lows, SkyCity Entertainment Group seems to represent an excellent opportunity for NZX-focused portfolios looking to capture the next upcycle in consumer services and entertainment. As the sector pivots from defensive adjustments to growth resurgence, the stock may well enter a new bullish era—making now an opportune moment to consider exposure as part of a well-diversified, forward-looking allocation.

For investors ready to look beyond recent turbulence, SkyCity Entertainment Group stands out as a prime candidate for renewed optimism and strategic positioning on the New Zealand market.

How to buy SkyCity Entertainment Group stock in New Zealand?

Buying SkyCity Entertainment Group shares online is now simple, fast and secure for NZ investors, thanks to the many regulated brokers operating locally. You can hold SKC stock directly via spot (cash) purchase, or take a more flexible approach with Contracts for Difference (CFDs). Cash buying gives you outright ownership and voting rights, while CFDs let you speculate up or down using leverage, with no need to own actual shares. Each route has pros and cons – so it’s essential to compare brokers, fees and tools before you invest. You’ll find our broker comparison further down this page.

Spot (cash) buying

When you buy SkyCity Entertainment Group stock for cash through a NZX-regulated broker, you become a direct shareholder. This means you own the shares, can vote in shareholder meetings, and benefit from any capital appreciation or dividends (though SKC isn’t paying dividends in FY25). Most New Zealand brokers charge a fixed commission per trade, typically around $5 to $15 NZD.

Important example

Example: If SkyCity shares are trading at NZD 0.95, your $1,000 investment (minus a $5 brokerage fee) lets you purchase approximately 1,047 shares [($1,000 – $5) ÷ NZD 0.95 ≈ 1,047].

✔️ Gain Scenario: If the price rises by 10% to NZD 1.045, your shares are now worth $1,100.
Result: +$100 gross gain, which is +10% on your investment (before tax).

Trading via CFD

CFDs (Contracts for Difference) let you profit from price movement—up or down—without owning actual SKC shares. Offered by regulated online platforms, CFDs allow for leverage, typically up to 5x for NZ equities, so your capital goes further. Instead of a commission, you pay a “spread” (the difference between buy and sell price) as well as an overnight financing fee if you hold the position longer than a day.

Important example

Example: You open a CFD position on SkyCity with $1,000 and 5x leverage, meaning your market exposure is $5,000.

✔️ Gain Scenario: If the underlying SKC share price rises by 8%, your position gains 8% × 5 = 40%.
Result: That’s a $400 gain on your initial $1,000 margin (before fees and taxes).

Final advice

Whether you prefer to own SkyCity shares directly, or use CFDs for active, leveraged trading, take the time to compare brokers’ fees, platforms, and regulatory status to find the best fit for your needs. The right solution depends on your financial goals, risk appetite, and investment horizon. Our broker comparison, just a little further down the page, will help you make an informed, confident choice.

Our 7 tips for buying SkyCity Entertainment Group stock

The latest news about SkyCity Entertainment Group

SkyCity shares record a 1.06% intraday gain despite continued technical and fundamental challenges. On 30 May 2025, SkyCity Entertainment Group’s share price closed at NZD 0.95, registering a daily increase of 1.06%. While the broader trend remains negative—down 3.06% over the week and more than 34% lower over six months—this uptick reflects periodic buying interest near technical support at NZD 0.92, its lowest in 52 weeks. This support zone has attracted local investors seeking value opportunities or anticipating potential stabilisation, and the modest intraday recovery offers a constructive sign amid otherwise dominant selling signals.

SkyCity posts a positive net profit for H2 2024, rebounding from the previous year’s loss. For the six months ending December 2024, SkyCity reported a net profit of NZD 6.1 million, marking a significant turnaround from a loss of NZD 16.5 million one year earlier. This positive bottom line, despite overall results still falling short of expectations, underscores resilient core operations and successful cost management. The company remains a leader in New Zealand’s leisure sector, with its Auckland and Hamilton properties continuing to see steady domestic visitorship, which has partially compensated for post-pandemic volatility in international tourism flows.

Strategic focus on digital transformation and non-gaming revenue streams positions SkyCity for long-term resilience. In response to headwinds affecting discretionary spending and tourism, SkyCity has accelerated investment in technology upgrades, digital platforms, and diversification initiatives such as hospitality and convention services. These moves have been well-received by local partners and stakeholders in New Zealand, signalling management’s commitment to adapting its business model for a fundamentally changed leisure environment. The company’s digital transformation and expansion of non-gaming offerings are expected to provide new avenues for growth as consumer patterns evolve.

SkyCity maintains a dominant market position and benefits from low share price volatility relative to the NZX index. Despite recent share price declines, the stock’s beta stands at just 0.27, indicating lower volatility compared to the overall New Zealand market. This characteristic appeals to institutional and risk-sensitive investors and aligns with SkyCity’s stable and entrenched presence as a leading casino and entertainment operator in the country. Its strength in the core New Zealand market, alongside geographic diversification into Australia, continues to underpin the company’s structural resilience during periods of sector weakness.

Rebound in international tourism offers a medium-term tailwind for SkyCity’s New Zealand operations. There is growing evidence of a progressive recovery in inbound visitor numbers to New Zealand, which bodes well for SkyCity’s flagship Auckland property and related assets. Local industry data and government tourism reports point to improving hotel and hospitality demand, supporting the company’s efforts to regain pre-pandemic earnings levels. As the market awaits SkyCity’s next results in August 2025, the anticipated pick-up in international tourism could become a key catalyst for improved revenue and sentiment around the stock.

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P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.