SkyCity's First Half Rebounded Strongly As Restrictions Eased and Tourists Returned

We maintain our NZD 3.80 (AUD 3.50) fair value estimate for shares in narrow-moat SkyCity following the release of interim fiscal 2023 results. First-half underlying EBITDA of NZD 162 million is more than triple the heavily restricted prior corresponding period. Profitability is back in line with precoronavirus levels, as strong gaming machine performance offsets a more gradual recovery in table gaming. We lift our fiscal 2023 EBITDA forecast 2% to NZD 315 million, near the middle of guidance at NZD 305 million to NZD 320 million. Our longer-term forecasts remain broadly unchanged.