SkyCity sheds nearly $300m after halting dividends

Economic challenges, fines, hotel delays and convention centre commitments were cited as reasons for the dividend suspension. (Image: Getty)

Ben Moore

Thu, 06 Jun 2024

SkyCity Entertainment Group’s shares plunged more than 20% after it suspended its dividends and revised down its guidance for the year to June 30.At publication time, the shares were trading at $1.35, down 22%, wiping just under $300 million off the company's market capitalisation. SkyCity's board suspended dividends for the second half of the 2024 financial year, as well as the 2025 financial year.The aim is to "maintain a robust level of headroom with respect to SkyCity’s net debt/ebitda covenant of 3.75 times wi...

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