SkyCity joins global e-sport trend
SkyCity Entertainment Group is launching into competitive ‘‘e-sport’’ gaming, a trend sweeping the world.
The listed casino and entertainment company has formed a joint venture with Let’s Play Live.
SkyCity has taken a 40 per cent stake in Let’s Play Live Media (LPLM), which will develop the country’s first purpose-built e-sports broadcasting studio, set to open on Level 2 of Auckland’s Sky Tower this summer.
E-sports gaming, where professional and amateur players pit their skills against rivals, will be broadcast for people in the casino to watch, SkyCity chief executive Graeme Stephens told shareholders at the company’s annual meeting in Auckland yesterday.
Sonya Crosby, SkyCity’s chief innovation officer, said: ‘‘Globally, e-sports is growing at a rapid rate and has a large and diverse audience, young and old, male and female, and people from all walks of life. We’re looking into the future and, as an entertainment technology company, we feel this is an exciting new area to explore.’’
The studio will deliver live 4K and HD broadcasts, and allow LPLM to film live e-sports events held at SkyCity Theatre and the International Convention Centre Theatre, when it is opened.
There will be dedicated console booths within the studio that will host e-sports competitions and livestream to a giant external LED screen in the SkyCity Plaza at the base of the Sky Tower.
Special family-friendly events would be held at SkyCity sites in New Zealand and Australia.
Crosby said the LPLM-managed E Blacks would promote New Zealand’s best e-sports players on the world stage and would provide a professional pathway for the grassroots talent developed through local tournaments.
Worldwide, e-sports are watched by an estimated 385 million people each year.
The e-sports announcement was an upbeat moment following a tough year for SkyCity, thanks to traffic disruption near its Auckland casino, a slowdown in highroller business, and weak trading conditions in Australia.
This caused net profit after tax to fall 69 per cent to $44.9 million for the year to June 30, as revenue dipped 7 per cent to $1.02 billion.
It also suffered a setback with the delay to the completion of its International Conference Centre (ICC) in Auckland, now expected to be completed mid-2019.
Stephens said the ICC and the development of the Adelaide casino were its two key transformational projects.
Already eight major conferences had booked at the ICC, shareholders heard.
It was the first time Stephens had addressed shareholders since he joined the group in May.
He was conducting a review of strategy to make sure SkyCity continued to grow in a period of rapid change in gaming. The Hamilton casino was developing well, but thought was being given to developing the company’s ‘‘immaterial’’ Queenstown operation.
Stephens said SkyCity was also working on its plans of the newlypurchased AA Centre near its Auckland casino, including finding a development partner.
About 70 per cent of SkyCity shares are owned by institutional investors, including KiwiSaver schemes.
Most KiwiSavers own a bit of SkyCity, unless they have chosen an ethical fund that avoids investing in gambling stocks.
While SkyCity maintained a strong dividend of 20 cents per share, directors were challenged on its share price performance.
The company’s shares closed yesterday at $3.82. In August last year, they hit a high of $5.17.