Good day, and thank you for standing by. Welcome to SkyCity Entertainment Group Full Year 2026 Results Conference Call. At this time, all participants are in the listen only mode. After the speaker's presentation, there will be question and answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I'd like to hand the conference over to Mr. Jason Walbridge, Chief Executive Officer of SkyCity Entertainment Group. Please go ahead. Good morning, everyone. I am Jason Walbridge, Chief Executive Officer of SkyCity Entertainment Group. Welcome to SkyCity's Presentation of our Full Year Results for the Financial Year 2026. We announced to the NZX and ASX this morning. Before we begin, I'd like to acknowledge the tangata whenua of our SkyCity sites, Ngāti Whātua Ōrākei, Waikato-Tainui, and Ngāi Tahu, and acknowledge the Kaurna people, the traditional custodians of the land in Adelaide. With me today in Auckland is Blair Woodbury, our Chief Financial Officer, and Callum Mallett, our Chief Operating Officer. On the call today, we will be going through the full year 2026 financial results presentation, and there will be time for questions at the end of the presentation. Let's move to slide five for an overview of our FY 2026 results. We've delivered on our earnings guidance provided in May of NZD 181.6 million, which is down 22.3%, or NZD 52.1 million on last year. Reported EBITDA is NZD 120.5 million, down 44.2%, or NZD 95.6 million compared to last year due to several significant accounting adjustments which Blair will talk to later in the presentation. Visitation remains strong across the group, with the small reduction due in part to changes in the way we measure visitation and the introduction of Carded Play. Revenue was flat on last year. However, total gaming revenue is down 5.9%, or NZD 34.7 million, with lower revenue across both gaming machines and tables. The lower gaming revenue is predominantly due to the introduction of Carded Play across our New Zealand casinos that went live in July 2025 and is in line with our expectations and guidance. We also experienced a lower level of activity in premium play compared to the prior period. Growth in our non-gaming revenue largely offset the lower gaming revenue with the opening of the NZICC in February, now included in revenue, plus growth in our hotels and food and beverage operations, particularly in Auckland. Costs increased over the year due to the opening of the NZICC, investment in our online operations, higher labor costs and ICT investment due in part to the implementation of Carded Play. We have seen a significant improvement in the cash flow from our operations, noting the prior period included one-off penalty and interest duty payments. We are responding to this change in our operating environment, particularly in Auckland and Adelaide, with a significant reset of our operating model, which I will talk to shortly. Turning now to slide six. In August last year, as part of the equity raise, we made a number of commitments to our shareholders, and we have taken important steps and made meaningful progress this year towards those. When we released our interim results for FY 2026 in February, we were still on track to meet the full year guidance we had provided in August 2025 and were starting to see signs of improving consumer spending levels in New Zealand. However, the Middle East conflict in early March and the resulting higher fuel prices had an immediate and significant impact on consumer spending. We saw the earnings impact in March and April, triggering the revised guidance we provided in May. We have estimated the EBITDA impact in the fourth quarter FY 2026 was approximately NZD 20 million when compared to the third quarter. Pleasingly, both our Hamilton and Queenstown properties were not noticeably impacted by these factors. We are well on track with our asset monetization program and expect to exceed our target with gross proceeds of NZD 275 million-NZD 300 million expected by December 2026. We have identified further cost out initiatives to deliver NZD 30 million in realized benefits in the current financial year, increasing to NZD 70 million in FY 2028. I will talk more to this shortly. We successfully implemented Carded Play across our New Zealand casinos in July 2025, and the financial impact for the year was in line with the NZD 20 million-NZD 30 million EBITDA guidance we provided to the market. The NZICC opened in February and has held 141 events, attracting 100,000 visitations over the balance of the year. Pleasingly, the feedback from visitors to the convention center has been very positive. We have reached a non-binding agreement with our Adelaide regulator for all the outstanding regulatory matters, which includes a fine of AUD 21 million payable over two years. As regulatory matters near resolution and the B3 program progresses towards completion, we are now undertaking a strategic review of the Adelaide business. Our key priorities for FY 2027 are resetting the balance sheet through our asset monetization program, introducing a new operating model to reduce costs, securing a future path forward for Adelaide through the CBS settlement, B3 program, and strategic review, as well as entering a new and complementary gaming market in New Zealand with the regulation of online gambling. I will now talk to each of these in more detail. As I mentioned before, we are well advanced with our asset monetization program and expect to deliver gross sales proceeds of between NZD 275 million and NZD 300 million by December this year, assuming the current non-binding heads of agreement for the sale of The Grand Hotel settles. We recently confirmed the unconditional sale of the commercial office properties at 99 Albert Street and Victoria Street for NZD 74.5 million, with settlement due in September 2026. The purchaser is New Zealand-based Mainland Capital and Russell Property Group joint venture. Based on discussions with, I will start again on slide seven for asset monetization. As I mentioned before, we are well advanced with our asset monetization program and expect to deliver gross sales proceeds of between NZD 275 million and NZD 300 million by December 2026, assuming the current non-binding heads of agreement for the sale of The Grand settles. We recently confirmed the unconditional sale of the commercial office properties at 99 Albert Street and Victoria Street for NZD 74.5 million, with settlement due in September 2026. The purchaser is New Zealand-based Mainland Capital and Russell Property Group joint venture. Based on the conversations we've had with them throughout the process and their plans for the properties, I'm confident they're going to be a great neighbor for the Auckland precinct. We are well advanced with the sale of The Grand Hotel and in due diligence with an exclusive bidder. The sale proceeds of both transactions will be applied to reducing our debt levels, and we expect to be below our targeted level of 2x debt to EBITDA at the end of FY 2027, and this will be before any costs associated with an online license. This is also consistent with the commitments we made to S&P Global Ratings at the time of the capital raise regarding the steps needed to remove the negative outlook we currently have on our credit rating. Turning now to slide eight and our cost out program. Over recent years, we've seen a structural change in the revenue and earnings from our land-based operations, driven primarily by the change in regulatory settings across the gaming industry. The regulation of online casino gambling in New Zealand is also likely to bring more change, and we want to participate in this important opportunity. Consequently, we're undertaking a group-wide reset of our operating model to become a simpler, smarter, and more connected business that has fewer layers, clearer accountability, and makes decisions faster. We're targeting realized benefits of NZD 30 million in FY 2027, increasing to NZD 70 million in FY 2028, and have a clear line of sight on where these benefits are coming from. Our organizational redesign in New Zealand is complete, and we're now moving quickly into implementation. Resetting our business for the future means less roles across parts of the business, and we have commenced a consultation process that potentially impacts between 200 and 250 of our employees, predominantly across the New Zealand corporate and back office functions. No final decisions have been made at this stage, and we are actively engaging with everyone involved in these proposals. To increase visitation, grow our revenue, as well as continuing to reduce our cost base beyond the initial reset, we have identified a large number of initiatives that are being assessed and are moving at pace to implement those that will deliver more benefit. Advances in technology, particularly in AI, will allow us to speed up current manual processes, making us more efficient, and importantly, shift us to being more digitally driven as an organization, solving problems using technology rather than manually. Our investment in technology will be disciplined and measured and focused on real, tangible benefits for our employees, customers, and financial performance. Our future operating model sees us with two New Zealand franchises, land and online, with Adelaide operating more as a standalone business. Turning now to slide nine and Adelaide. We have signed a non-binding heads of agreement with CBS, our regulator in Adelaide, that once formalized, will conclude their enforcement action following the Martin independent report. Included in their agreement is a fine of AUD 21 million, payable in three equal installments over two years, with the first payment due once we have finalized the agreement. We also now have more clarity on the operating and governance model and the regulatory framework that is required in Adelaide going forward. These enhanced governance, compliance, and operational commitments will be implemented by July next year. The independent board and new operating model, seeing the business operate more standalone, will be in place by January 2028. This has been a long process. I would like to acknowledge and thank CBS for the constructive approach that they have taken throughout the settlement discussions and the tremendous amount of work done by our team involved in this matter. We have also been progressing the B3, or Building a Better Business program, are well advanced with this detailed and comprehensive remediation effort. We now expect this will be completed in early FY 2028, which reflects the pace of approvals along with casino system delays. An updated independent valuation has been undertaken of the Adelaide business, and due in part to the changes outlined above, we have written down the carrying value of Adelaide by AUD 42.9 million. The key priorities for us going forward in Adelaide are finalizing the CBS agreement, progressing B3, and with the clarity I spoke to earlier, the commencement of a strategic review of the business with advisors appointed. We are proud of the Adelaide business. It is a valuable part of the group. We are well-placed to be patient and deliberate about the path forward, and we expect to update the market during FY 2027 on the strategic review. Turning now to slide 10 and our online opportunity and business. The New Zealand government has passed the legislation enabling the regulation of the New Zealand online casino gambling market, with the market expected to go live in the first half of 2027. This represents a very significant opportunity for SkyCity and one we are very keen to be part of. The New Zealand Department of Internal Affairs released a paper looking at the current online gambling market, and I would recommend you have a read of it. It is available on their website. It provides an independent overview of the current size and structure of the market, including recent growth rates. It is based on analysis of customer spending information done by a firm called Dot Loves Data, utilizing data from one of New Zealand's Big Four banks. It provides detail on a very significant existing market of around NZD 1.4 billion, of which it appears casino gambling is a very large part. The analysis also highlights the very attractive growth rates in this market. We have submitted our expression of interest to participate in the upcoming license auction in September. Because of the auction structure, all successful bidders will pay the same price. A full application is required to be submitted by the successful bidders, and the regulator needs to approve detailed business plans and strategies relating to advertising, marketing, consumer protection, harm minimization, and regulatory compliance. Once these have been completed, licenses will be issued, and we expect that the market will open in early 2027, with operators going live no later than the 1st of June. We have provided further details on the legislation and regulations for the online casino gambling market in the appendix. We believe that we are well-positioned to successfully participate in what will be a very competitive market. Importantly, we have a disciplined approach to any financial investment required through the process. With a phased investment pathway with specific gateways agreed with our board that have associated return targets in line with the return hurdles expected with this type of investment. Turning now to slide 11. A major highlight for SkyCity this year was the opening of the NZICC on February 11, and since then, we have hosted 141 events with approximately 100,000 visitations over FY 2026. We have received positive customer reviews and have already seen a number of events rebook. The pipeline for FY 2027 is encouraging, with approximately 350,000 visitations spread across more than 350 events. This includes major international conferences, with some of these outlined on the slide, and we look forward to welcoming these international visitors to Auckland. We had set ourselves a target of achieving breakeven EBITDA for the NZICC on a standalone basis in FY 2027. We will get close to this, but due in part to the current economic conditions, we now expect to achieve this in FY 2028. We are starting to see the benefits of the increased visitation across our Auckland precinct, particularly in our hotels and F&B outlets. The teams are doing an incredible amount of work analyzing the movements and behaviors of the visitors to the NZICC, and are looking to ensure we have the right offerings in place to maximize cross-precinct spend. For example, the International Coral Reef Symposium was held in July, and attendees had a dedicated website that included a range of offers to take advantage of the many attractions available across the Auckland precinct. The NZICC is a fantastic addition to Auckland and New Zealand, and I am very confident it will deliver the growth in visitation, revenue, and earnings that we are expecting in the future. I will now hand over to Blair Woodbury to discuss the group financial results in more detail. Thanks, Jason, and good morning, everyone. Jason has spoken to the key aspects of the results, so I do not intend to go into too much detail. As noted previously, the underlying EBITDA of NZD 181.6 million is within the updated guidance range we provided in May. This includes the impact of the conflict in the Middle East had on our business. Prior to this, we were well on track to meet the guidance we provided in August last year. FY 2026 has a number of non-operating items that I will step through shortly. The flat revenue we saw in FY 2026 when compared to FY 2025 masks the compositional change we saw with lower gaming revenue, driven by carded play impacts and lower consumer discretionary spend, offset by an increase in our non-gaming revenue, driven by the opening of the NZICC and higher accommodation in food and beverage revenues. The team has been looking very closely at how we can return to growth in gaming revenue, particularly in Auckland, now that we have moved to Carded Play. Callum Mallett will talk to this shortly. The opening of the NZICC provides SkyCity with a significant increase in visitation to its Auckland precinct, and we're expecting non-gaming revenue will grow at a faster rate than gaming revenue. We are already seeing the benefits of its opening in February, particularly in our hotel and food and beverage operations. Underlying expenses were up NZD 50 million year on year, with NZD 14 million of the increase driven by the NZICC operations since February. We remain very focused on reducing our cost base to ensure we have the appropriate operating model in place for the future shape of our businesses. This is a key area for me as CFO, and I'm very confident we will be able to realize the benefits we've identified. The work we have done with Alvarez & Marsal has been thorough, detailed, and has identified a wide range of initiatives that will increase visitation and revenue, as well as lower our costs. We will move at the appropriate pace to ensure we realize those benefits without compromising our compliance obligations and continuing to deliver an excellent customer experience. I'll now talk to the non-operating items that impacted reported profit. You will see in this result we have several significant accounting adjustments, and I'll talk briefly to some of the major ones. Derecognition of the tax assets. As flagged at the first half results, we no longer recognize the potential tax benefit from accumulated losses. Whilst the NZD 180 million odd of tax losses remain available to the business to use against future taxable profits, we deemed it prudent to remove these from the balance sheet, so here you will see a NZD 32.5 million charge to the tax expense in the P&L. As Jason touched on, we've taken a non-cash write down, NZD 52.2 million of the carrying value of Adelaide. This write down has been driven by a combination of revised forecasts reflecting current trading and future economic environment. We're expecting operating model changes as agreed with CBS, including Adelaide operating as a more standalone business and increased CapEx, mainly on the railway building in Adelaide. Recognition of a NZD 23.9 million provision for the AUD 21 million fine agreed with CBS. The NZD 23.9 million [inaudible] represents the net present value of the expected payments as required under accounting rules, with the fine payable in three equal installments. The unconditional sale of the Auckland commercial properties has triggered two impairments reflecting the way we have historically accounted for those assets. For the SkyCity occupied portion of 99 Albert Street, there was a write down of NZD 10.3 million, and we have recognized NZD 6.1 million of fair value losses on the remainder of the Auckland investment properties that we are selling. As part of our ongoing cost reduction and simplification activities, we disposed of certain offshore entities that had been used as part of previous financing structures. With their disposal, we have to release the cumulative foreign currency translation movements totaling NZD 55.3 million. Finally, on completion of the NZICC, we closed out the accounting for the deferred license. These accounting entries have the effect of creating a deferred tax asset of NZD 73 million as the license was recognized against the NZICC assets. The deferred tax asset will reduce over time as the NZICC assets depreciate. Turning to slide 15. I will start with reiterating that we continue to meet our debt covenants. We are making good progress on delivering the balance sheet reset through the asset monetization program. The debt to EBITDA ratio used in our banking covenant calculation is at 3.1x. It is marginally above the level we indicated in August last year of 3x, due mainly to the lower level of earnings in the fourth quarter of FY 2026. The metrics are also before the receipt of the sale proceeds from the Auckland commercial properties and The Grand Hotel. We have given you an indication of where these metrics would be should both of these assets sell at the prices in their respective agreements. We are now unconditional with the Auckland commercial property, and the gross sale proceeds of NZD 74.5 million will be received in September. We also expect to update you on The Grand Hotel sales process around the end of September. We are also expecting a review of the current S&P negative outlook on our BB B- credit rating post the settlement of The Grand Hotel sale. We remain committed to a debt to EBITDA ratio of below 2x by the end of FY 2027. This excludes any payment we may need to make for any online licenses, as Jason just touched on. We will be able to provide an update on this in October following the conclusion of the online license auction. We are pleased to have refinanced a portion of our banking facilities in July, increasing that part of the facility to NZD 140 million, extending out to September 2029, and consolidating two previous tranches into just one. As previously guided, there is no dividend payable in FY 2026. Switching to slide 16. With the opening of the NZICC in February, FY 2026 marks the end of the CapEx investment in this asset, and we now have less than 100 matters from nearly 20,000 to resolve, leading to the final retention payment that will become payable in FY 2027. The notional free cash flow from our New Zealand operations is the core part of the group's cash flow. With the increased visitation and on-spend opportunity across the Auckland precinct, we are positive about the future cash flow generating capability of these assets. In FY 2026, New Zealand generated NZD 121.7 of notional free cash flow, an increase of NZD 21.2 million, driven by reduced additions to assets. We have access to a large amount of liquidity through our undrawn bank facilities, NZD 30 million on term deposits, and NZD 84 million of cash, even allowing for a full repayment of the retail bond. As shown on the slide, I would like to highlight that upcoming repayment date of the retail bond in May 2027. We are working with the board later in calendar 2026 to determine the balance sheet settings and optimal debt structures once we are on the other side of the online auction and confirmation of sale proceeds from The Grand. As noted on the previous page, after allowing for the retail bond payment, we currently expect to have access to NZD 186 million of liquidity. Turning to slide 17. As I just spoke about, FY 2026 marks the end of our NZICC investment. CapEx, excluding interest, was NZD 95.4 million, a decline of NZD 43 million from FY 2025. When I joined, I recognized the impact of higher fuel and reduced consumer discretionary spend back in March, and we immediately reviewed and reduced our CapEx program to partially offset the lower earnings. NZICC CapEx for FY 2026 accounts for over 90% of our gross investment. In addition to the B3 program operating costs, we spent approximately NZD 10 million in FY 2026 across New Zealand and Adelaide to lift our regulatory capabilities. We will continue to manage our capital expenditure in a disciplined way, ensuring any money spent improves the customer experience, enhances our regulatory compliance capabilities, and delivers the appropriate returns that we demand. Going forward, we expect our future CapEx to be within a range of NZD 80 million-NZD 100 million before any investment on an online license. In FY 2027, there is a final payment of NZD 10 million for NZICC. NZD 8 million is also allocated for payments associated with upgrading the railway building in Adelaide. We will have a reset of our asset base, and therefore our forecast Auckland CapEx, following the sale of the commercial properties and The Grand Hotel. However, we do need to catch up on some expenditures that were deferred over recent years, particularly in some of our customer-facing areas, such as the Auckland gaming floors and some of the food and beverage outlets. We also need to invest in the process improvements that will support the reduction in headcount that Jason Walbridge touched on earlier. With that, I will hand over to Callum. Thanks, Blair. Good morning, everyone. Turning to slide 19 and our Auckland property. FY 2026 site-wide visitation across our Auckland precinct was broadly flat on the prior year, with lower gaming visitation offset by an increase in non-gaming visitation. We did see a noticeable impact in March from the flow-on effects of the Middle East conflict, with higher fuel prices resulting in lower levels of visitation as consumer discretionary spending weakened. We responded to this change in customer behavior by introducing discounted parking and food offers. These were well received by our customers, and we saw visitation stabilize at these lower levels for the remainder of FY 2026. The implementation of Carded Play significantly impacted gaming revenue for the year, but was in line with our expectations and the guidance we provided to the market. We were generally pleased with how the rollout went. The work we put into minimizing and managing the extra requirements we imposed on our customers helped maintain customer satisfaction at levels consistent with those prior to the rollout. We have also seen strong opt-in to the loyalty program, SHOW by SkyCity. As Jason Walbridge mentioned earlier, we rolled out phase 2 of Carded Play in July, and these upgrades are not expected to impact earnings. We are focused on continually improving the experience for our customers from Carded Play and are focused on utilizing the data we now have on all our gaming customers. The implementation of new technologies, such as Angel Eye Complete and QCI, will help drive gaming personalization and growth in FY 2027, along with the rollout of new gaming product, including the introduction of Aristocrat's new game, Phoenix Link. We successfully opened the NZICC in February and have been pleased with early trading. We have been able to learn much about the behavior of visitors to the NZICC across a wide range of events. We will take these learnings into how we optimize visitation across the Auckland precinct. The growth in revenue from the hotel portfolio illustrates the benefits of events at the NZICC, with improvements in occupancy providing the opportunity to optimize the average daily rate. Food and beverage, car parking, and the Sky Tower also benefit from this growth in visitation, and we continue to evolve our offerings to ensure we maximize the on-spend benefits to the Auckland precinct. We see the opening of the CRL in September as a positive catalyst for visitation to both the CBD and our precinct. Turning now to slide 20. We were pleased with the performance of both Hamilton and Queenstown over the year, with the impact of Carded Play being less than expected, especially in Queenstown. We also saw minimal impacts from the Middle East conflict on fourth quarter trading across both Hamilton and Queenstown. The visitation changes in both gaming and food and beverage are primarily due to the change in how we measure our visitation across both casinos, with the key driver being the introduction of Carded Play, allowing us to more accurately track player metrics. This makes the direct comparison with the prior period less relevant, but you will also see a corresponding increase in spend per visitation. A strong rural economy has benefited our Hamilton site, with property investments such as the expansion of an outdoor gaming balcony being well received by our customers. We submitted our license renewal application for the Hamilton Casino during the year, and we will work through this process over FY 2027. Queenstown continues to benefit from strong international visitation, especially from Australia, helped by increases in Trans-Tasman aircraft capacity. The Queenstown Casino license was successfully renewed for a further 15 years from December 25. We recently refreshed the level 2 bar and lounge offering in Queenstown, with the area now providing a more relevant customer experience as well as delivering greater operational efficiencies. Turning now to slide 21 and our Adelaide operations. Gaming revenue was slightly down year-on-year, with growth in both local EGMs and local tables being offset by lower play in our premium table segment. We ended the year with an improvement in our market share in the South Australian EGM market, improving from 7.9% in June 2025 to 8.3% at June 2026. Non-gaming revenue was up by 3.9% for the year, with spend per visit increasing in F&B, and both occupancy and rate growing on the back of strong events-driven visitation to South Australia and the opening of a new restaurant, Huami. We had a strong cost focus in the second half of FY 2026 and were able to reduce the cost base by AUD 10 million, in line with our expectations that we spoke to in February. We are continuing to work hard on the B3 program and are now targeting completion in early FY 2028. The timing for the implementation of Carded Play into Adelaide is yet to be confirmed but will not occur in the first half. I will now hand back to Jason. Thanks, Callum. Turning to the outlook for FY 2027 on slide 23. I'd now like to speak briefly about current trading and the outlook for earnings going forward. When we updated our FY 2026 earnings guidance in May, we noted the material impact of the Middle East conflict had on discretionary spend, particularly in our Auckland and Adelaide properties, and I spoke about this earlier. The earnings impact on EBITDA we saw in the fourth quarter of FY 2026 was approximately NZD 20 million when compared to the third quarter, and this has continued into early first quarter FY 2027 trading. We expect to see the benefit from the cost out program impact our reported earnings, in FY 2027. The CapEx for FY 2027 is expected to be in the range of NZD 80 million-NZD 100 million, which includes retention payments for the NZICC, but excludes any costs for online licenses. We note that there's heightened level of volatility and uncertainty in the macroeconomic environment currently influencing consumer sentiment, and we are not providing earnings guidance for FY. Just to outline, briefly about current trading and the outlook for earnings in FY 2027. We updated our FY 2026 earnings guidance in May, and we noted the material impact the Middle East conflict had had on discretionary spend, particularly in our Auckland and Adelaide properties. I spoke about this earlier. The earnings impact on EBITDA we saw in the fourth quarter of FY 2026 was approximately NZD 20 million when compared to the third quarter for FY 2026. We've seen this continue into early first quarter FY 2027 trading. We do expect there to be some one-off costs from the cost out program impact our reported earnings in FY 2027. For CapEx in FY 2027, we do expect that to be in the range of NZD 80 million-NZD 100 million. As Blair outlined, this includes the retention payments for the NZICC, but excludes any costs for online licenses. We note that there's heightened levels of volatility and uncertainty in the macroeconomic environment currently influencing consumer sentiment, and we're not providing earnings guidance for FY 2027 at this time. In this morning's presentation, I've outlined our key priorities for FY 2027. Completing our asset monetization program, resetting our operating model, and realizing the meaningful benefits from our cost reduction initiatives. Finalizing our agreement with CBS while continuing the Adelaide remediation program, and now commencing a strategic review of that business. Entering New Zealand's regulated online casino market, which we see as a significant growth opportunity for ourselves. Together, these priorities provide a clear pathway to sustainable earnings growth. Our focus continues to be on disciplined execution, restoring positive cash flow, and once achieved, reinstating dividends for shareholders. We will of course provide a trading update at the annual shareholder meeting in October. Thank you for listening this morning, and we will now take questions, hopefully with no further technology interruptions. Let us see how we go. Thank you. We will now begin the question- and- answer session. Our first question comes from the line of David Fabris from Macquarie. Please ask your question, David. Your line is open. Hi, Jason, Blair, and Callum. Can we just start off with the asset monetization program? I appreciate there is a couple of transactions going on there, and you have shared the gross proceeds. Can you maybe share the EBITDA benefit you got from all the earnings from those assets in 2026 so we can think about the impact once you do get that The Grand Hotel transaction away? Morning, David. I will hand over to Blair and get him to share that. Yeah. On a normalized basis, The Grand is the big one, obviously. That would be in high single-digit EBITDA impacts, on an annualized basis. Okay. Perfect. That is fine. The commercial ones, to be honest, most of them are rounding. By the time you factor in all of the costs of maintaining the buildings, it is barely NZD 1 million-NZD 2 million EBITDA impact. Okay. Appreciate it. Thank you on that. Just thinking about the cost out, it looks like it is mostly contained to SkyCity Auckland and the corporate costs. Are you able to provide guidance on the FY 2027 corporate cost line? Then just thinking about Auckland, maybe you can set the framework on how we should think about margins. A range would be really helpful given the moving parts. Yeah. I will cover the cost part, and Callum can cover the margin parts. We are not giving guidance on the exact costs in detail at this point, mainly because the large proportion of it comes from people-related costs. We are still in a consultation process, and it would be rude of me to presuppose what that outcome would be. But it will be a combination of people-related costs and third-party spend. Callum on the margins. Yeah, thanks, Blair. Hey, David. Look, on margins for Auckland, obviously we saw a drop in 2026. You had three factors there, obviously. One, introduction of MCP, so therefore the lower gaming revenue, impact of fuel, and then obviously the opening of the NZICC, and what you sort of call a soft opening in the first few months, not the traditional business that we would expect to see in a sort of four-month period. So, we would hope, looking into this year, that margin will improve demonstrably on the back of NZICC operations, the larger international conferences beginning to come through, and that on-spend. Albeit, as Jason has alluded to previously, we do see growth in non-gaming outstripping gaming growth, and obviously that comes at a lower margin than gaming. Yeah. Okay. Just to clarify, does that margin guidance of the improvement include the impact of The Grand Hotel? Not at this point. Not until we've concluded. Okay. One final question for me. Just on the online piece, I'm hoping you can share some thoughts around the license cost potential. I assume that you're going to bid for three as well. Just to round it out, just your thoughts or aspirations on market share and just your confidence in the market size, because you're talking north of NZD 1 billion now. I think back in early 2025, you were speaking to a NZD 700 million market. It's moved up quite significantly from there. Any comments around those parts would be helpful. David, I'll take that one. I'll start with market size. The information that I've shared this morning has come from the Department of Internal Affairs and some research that they commissioned. You're right, the market has grown significantly over the last two to three years. The growth rate is double-digit percentages. In terms of license costs, there's going to be up to 15 licenses that they're going to be awarded through an auction process. That auction process is going to result in everyone paying the same price. We expect that other bidders, like ourselves, will take a very disciplined and rational approach, that the price paid at auction will be relative to the value that we all believe from getting into the market and the returns that we can deliver. We haven't provided any specific information on what we think a license could be worth. As you would obviously understand, we're about to enter a competitive bidding process, and we wouldn't want to tip our hand there. The third thing I think you asked me was just around market share. We haven't provided any further color on that at the moment. We believe we're well positioned in the market. We think that we've got the opportunity to be the local hero, the New Zealand company offering online casinos for New Zealanders. We've been here for 30 years. We understand the regulatory environment. We understand New Zealanders quite well. So we're very optimistic and excited about what this opportunity presents us. I just want to underscore, though, we're going to take a very disciplined approach to this in terms of thinking through how we move forward through auction and are successful through investment in the early phases of the market opening. Good. I appreciate that. But is the aspiration that you bid for three licenses, though? Look, much of it is going to depend on the value of the licenses, David. We are currently working our way through and evaluating those things at the moment. Okay. Appreciate that. Thanks for the color on the questions. Thank you. We will now take the next question from the line of Paul Koraua from Forsyth Barr. Please ask your question. Paul, your line is open. Hey. Good morning, guys, and thanks for taking my questions. Maybe just picking up on online. I think it was quite encouraging to hear that you have a number of return hurdles set between you and the board in terms of how much you are willing to spend. I guess my question is one of those return hurdles going to be based on the amount you want to pay for the license? If you think about what you have talked about with resetting the business between land and online, it sounds like there is a little bit of presupposition that you are going to bid and win a license. Maybe just comment on that. Yeah. I will take the first part of that, Paul, then I will hand over to Blair to talk about how we are approaching the investment. Yeah, the operating reset that we are going through at the moment is as much about reacting to the historical structural changes in our earnings due to regulatory shifts, as well as getting ourselves fit for the future as well. That does obviously presuppose a world that we are involved in the online market, but also potentially not as well. We want to make sure that our land-based business is positioned well to offer great experiences for our customers, regardless of whether we are in the online market as well. Yeah, and just picking up the return hurdles. As Jason touched on, a rational market is going to say there is a cost of entry called an online license, and then there are cash investments that you need to make to market your brands, acquire the customer, and ultimately, down the line, retain the customer. We have got a raft of scenarios that we are playing out on what each one of those features may or assumptions might look like into the future. Then we put that through, as you would expect, a normal cash flow model, discount that back compared to the returns that we definitely want above our cost of capital, and any other investment options in front of us that could deliver the same or potentially better returns, particularly in the land-based world. So, it is complex at the moment. We are all playing a guessing game, and that is why it has been a bit challenging for us to be able to give guidance, given timing is uncertain, the number of participants in the auction is uncertain, what the cost of the license will be. The one thing that we are probably better off is, given that the online market does exist, we do know how current New Zealand players do respond to things like acquisition offers and retention offers, reactivation offers. Thanks, Paul. Appreciate that color. Maybe just secondly, moving on to Auckland. I think that is a business that has had a decent amount of disruption recently with City Rail Link, MCP, even NZICC finally opening. All of that stuff seems to be behind us now or nearing completion. Can you just sort of talk to what part of that business you think there is significant room for improvement, and where you think that is going to come from, and what you guys can sort of do outside of waiting for the cycle to turn? I know cost out is one of them, but if there is anything else you can point towards. Thanks, Paul. Yeah, you are right. Auckland has seen its fair share of disruption. We are obviously really thrilled getting the convention center opening, and early performance has been encouraging there that Callum spoke to. CRL opens next month, and the city is starting to get a little bit of a buzz back, which is quite nice. The mayor here is very much leaning into the visitor economy, and there is a lot of encouraging initiatives in that regard. I will hand over to Callum to perhaps talk about a number of things that he sees around the property. Yeah. Hi, Paul. Look, first off, February in particular, we really started to see what you are talking about, that what could we be post recession with NZICC opening, et cetera, and then obviously things were derailed a bit from March onwards. Look, we feel optimistic about the opportunity that Auckland has. You pointed out the disruption the entire city has had. That is certainly coming to much more of an end once CRL opens on the 13th of September. For us, moving into this year, the obvious opportunity of that visitation through the NZICC, the ability to drive hotel rate. Which as we know, rate, once we are already above a sort of 80% occupancy, it is cool it has very good margin in the hotels. You will remember we invested 18 odd months ago in the production kitchen, not an insignificant amount of money, to really make sure we could drive margin in F&B. In a really tough market, the team has grown that margin to close to 20%. We really see the ability to, especially with the NZICC, maximize that opportunity. We have some opportunities, as Glenn talked to, with some conservative and cautious capital expenditure, we think, to offer some really good customer initiatives, particularly around that sort of level 3 area of the casino that links directly in with the NZICC. Hotels, yes, tower, we have hopefully grown international visitation into Auckland. That then certainly from gaming. We have lacked now a year of MCP. We have learned a lot. We would like to think we have rebased that business. We would like to think that there is growth potential there. Awesome. Thank you. That is really good color. Maybe just last two from me on capital. The CapEx slide, I thought was good. It has a lot more color on there. I think the thing that sort of jumped out to me is you had. You are talking to growth CapEx sort of coming to an end. If you look at your bars, your maintenance CapEx is much lower than your forward guidance suggests. Maybe just sort of squaring that away. I know you talked about a bit of catch-up spend. Just eyeballing that chart, looks like there is a decent bit more to come. Yeah. We did not break out FY 2027 into the buckets yet, mainly because we are still waiting to see exactly how online will play out. In those bars, the gray bar is the NZD 10 million NZICC retention payment. That is technically growth. Hopefully touch wood, the final payment on that investment. There is some I will call it lumpy/catch-up CapEx, particularly in Adelaide relating to the railway building. That building is an awesome, brilliant building, but it is old. It needs some investment to keep it going. That shows up why the gray bar is probably not what I would call a normal year yet. You will see in the outer years, we are showing the direction of travel as some of that catch-up CapEx falls away. The other one that we are working through, in real-time, in conjunction with our cost-out program, is exactly what that level of expenditure might need to be to deliver the customer and process improvements. Under accounting rules, it might slip between CapEx and OpEx, particularly if we start leveraging a lot more SaaS rather than in-house application development. Awesome. Thanks. That makes a lot of sense. Then maybe just the last one from me. You talked of NZD 275 million to NZD 300 million of gross proceeds. You now have said that you are looking at what you do with Adelaide. Potentially, if you think of divesting that asset, you could get to a point where you have got no interest-bearing debt or no debt at all on the balance sheet. That can be a good thing, but I guess, from the market level, what comfort can you give us that where those dollars go is in a place that can deliver the best risk-adjusted return for shareholders and not put in other places? Good call-out. At this point, it is too early to say. For a start, we are just commencing the Adelaide review, so we do not know how that plays out. Therefore, it would be presumptive of me to make any comments on what we may or may not do with the funds, given that that is very early in the process. Then when we set out with the original NZD 200 million goal back in August last year, we did not assume lower earnings related to Middle East conflict and lower discretionary spend. So once we get on the other side of the online license auction, once we get on the other side of completing The Grand Hotel, I will be sitting down with the board, working out what are the right balance sheet settings moving forward. We will provide an update to the market and investors at that time. Awesome. Thanks, guys. Appreciate your time. Thank you. We will now proceed to take our next question from the line of Adrian Allbon from Jarden. Please ask your question. Adrian, your line is open. Good afternoon, team. I think we just crossed over. The first question, maybe it starts with Callum actually. Just focusing on Auckland, the drop that you noticed with the Middle East and the fuel price. Hopefully with the benefit of Carded Play, can you give us a sense of what sort of buckets of customers were the most affected? Yeah. Hi, Adrian. Yes, very easily. It was mass gaming visitation from the local drive market. It was number of visits. So when they actually came, they were still spending the same time and the same amount of money with us, but they were just visiting less. So that is why the key initiatives we put into the market were around parking and around F&B deals. Okay. To summarize that, it was the frequency of the visitor and the mass, not the spend level. Once you sort of comped them with parking and F&B, they were happy to come back a little bit more frequently. Correct. Okay. Just staying in this area. I know you haven't provided guidance, but if I throw forward some building blocks that we might be thinking about. It feels like your fourth quarter EBITDA that you're signaling is just short of NZD 40 million. You've said that that's a level that you're experiencing in the first quarter. If I annualize that, we're talking at close to NZD 156 million to NZD 160 million as the first building block. We can make a judgment as to how long that lasts. Is the cost out number of 30, is that a gross number or is that a net number? It's a net number. Okay, cool. All right. We're sort of at, broadly speaking, NZD 185 million- NZD 190 million. Is there any other building blocks going the other way or that we should be thinking about? Yeah, the big one which we are uncertain as to the timing is the online. As you can imagine, when the online market opens, and depending on how many months that is, we'll have a different profile of revenue and costs associated with that. Like any new market opening, the first few months are expected to be a drag on earnings. That's the negative building block using your parlance. Sorry, just on that, I do not think you. Okay, so that might actually be open in the second half of this year, is what you are saying? Yes. Yeah, it actually has to be open, Adrian. The legislation requires licenses to be issued and all operators to be up and running by 1 June. Okay. All right. So that is the other shout-out that we should think about, just in that mix. Yeah, that is right. Just in terms of, just a couple of housekeeping ones. On the asset monetization, you've talked in gross proceeds. Do you have a crayon around any potential tax implications or like you have called out there, what the net proceed might be? What sort of range are we talking? Yeah. The big tax bill or depreciation callback is likely on The Grand. So that is not a small number, given that the way that we currently account for it is at cost, that we don't revalue The Grand, not all of The Grand. So there will be a tax bill. We're working through the quantum of that. We're working through other potential offsetting tax benefits that we might get from other transactions. The timing of the cash payment of that's more likely FY 2028, because it'll show up in our FY 2027 tax returns. So we're just working through that. Obviously, the structuring options come into transactions for how you might seek to minimize tax impulse. Okay. So from our perspective, gross proceeds will largely flow into 2027 and any leakage will happen in 2028 on the tax side. On a cash basis, yes. Cash basis. All right. Just in terms of the broader cost, in terms of the cost out program growing to NZD 70 million in 2028, how does Adelaide feature in that number, or is it not in that number? Yeah. Adrian Jason here. Yes. There are some cost savings that we anticipate from Adelaide. You will probably compute in the numbers we've presented today that there has already been a significant cost out effort in Adelaide as well. Okay. So that number, as it stands on this presentation, includes an Adelaide allocation. Yes. The majority of the cost outs that we are expecting through 2027 and 2028 are in New Zealand. Okay. Understood. Just a couple other ones. In terms of the intention, assuming you get the proceeds in from the asset monetization, is the intention at the moment to just retire the retail bond in terms of a cash flow event? Yeah. Look, that is an option. The retail bond or the New Zealand debt market has been a good place for SkyCity over many years. Option A would be go to zero. Option B might be stay in that market. It is easier to stay in. Makes it a little bit flexible in later years. Then depending on quantum and timing, we have obviously got the USPPs sitting there as well. Once we are firm on the level of funds available, we will work through how we efficiently get to the right debt levels moving forward. Okay. Understood. That is part of your later in the year update, I suppose, in terms of that decision point. Correct. Just another one. I just noticed in the accounts regarding Fletchers and that contingent asset, you do highlight that you have a trial date set for May 2029. Can you just give us an indication of what additional tick boxes you had to go through to get to that point? Yeah. It is a matter before the courts, Adrian, so I do not want to. Not possible to share too much. The discovery process has been the most recent one, and then obviously setting that trial date. So it is something that is going to progress over time with the trial now in 2029. Just to extend you a little bit. When you talk about the discovery process, is that more documentation that you have pushed into the process from your side? Yeah. It is all part of the normal civil action that is the same for every single process. So it really would not be appropriate for me to go into more detail for something that is pending at the moment. Okay. No problem. Very good. Thanks for my questions. Thank you. We will now proceed to take our next question. The question comes from the line of Marcus Curley from UBS. Please ask your question, Marcus. Your line is open. Good afternoon, gents. I will try and be quick. You had a negative revenue in your premium play. Could you just give us a feel of what the normalized revenue is and how you think about that business heading into this year? Yeah. Hi, Marcus. It is Callum here. Yeah, look, that was a tough year, obviously. As you would know, we made some pretty demonstrable changes in that area of the business. Best thing to do probably is to look forward and say that we think it is a business we want to be in, albeit we will continue to tread carefully and cautiously. We are focused on growing the number of players in that area. Obviously, as I say, cautiously. Across the last 12 months, we probably haven't had the level of play that we'd like to see moving into- Oh, yeah. Not where we want to be today. We definitely want to be in the segment. Callum and the team are looking at the opportunities that we have there. We're obviously approaching that through the framework of our new regulatory settings. That will mean that it continues to be a modest segment earner for us, but an important one that we want to be in. Thanks. Secondly, could you just give us a view on what the total NZICC losses were within the result that you've just reported at the EBITDA line? We don't count that out individually. It's part of the Auckland segment. It's measured in single millions. For FY 2026, we have what you'd call pre-opening costs, which is just making sure it's all set up and ready to go, a lot of testing that doesn't repeat. So we expect to see those, obviously, don't have pre-opening costs again. Then as trading, as we fill it up, then those losses dissipate, and we expect to be at a breakeven point in FY 2028. From memory, I think, and it might have been before your time, but I thought there was about NZD 5 million of pre-opening costs in the first half alone. That sounds right. I will come back to you, Marcus, and check that. Sure. I suppose in terms of your, as Adrian's terminology, your bridge for this year coming, obviously, the move from EBITDA loss to modest EBITDA loss in the NZICC is also a pretty material change. So having an understanding of how much it lost this year would be useful. And then just finally, just on the revaluation of Adelaide, am I right when I look at the accounts, that they have valued it. Maybe while I find it, could you just confirm that the valuation that they did, the independent valuation on Adelaide, excluded the tax losses in that business? Yeah. The valuation we had performed was in accordance with the accounting rules. They are very specific. You have to use a cash tax-based calculation. We were not allowed to recognize the value of that tax losses in the valuation. The valuation was AUD 119 million to AUD 173 million. Okay. The tax loss is at the moment inside of Adelaide? Big. Way over 150. I think the number is roughly 180 million of losses available. The assumptions in the valuation included minus 18% impact from carded play on uncarded revenues. Correct. Could you just give me an estimate of what proportion of Adelaide's revenue today is currently uncarded? I don't have that precise number to hand. As you can imagine, the rules in Australia are a little bit different than here in New Zealand for a couple of reasons. One is 18-year-olds are allowed into casinos and it's 20 here in New Zealand. So the uncarded proportion is quite high at the moment. It is, I'd call it the majority, and the 17.5%, probably presuppose your next answer, is that's just the midpoint and similar to what we experience here in New Zealand. Oh, for sure. But I was just trying to get- We'll come back to you. That's all right. Yep. The program play is carded, albeit manually. It's really the main gaming floor that's uncarded today. All right. We've just got one last question, I think, on the line from Kieran Carling. Marcus Curley, we'll come back to you on those details, if that's okay. Sure. No problem. We will move on to our next question from the line of Kieran Carling from Craigs Investment Partners. Please ask your question. Kieran, your line is open. Good afternoon, guys. I will keep it fairly quick because most of these topics have been covered, but I know you are not too keen to get into the weeds on the cost out targets, but are you able to step through, roughly speaking, what the NZD 30 million is made up of, just in terms of the headcount reduction and other components as well? I just want to try to understand what you actually have to achieve to hit those numbers in 2027 and 2028. Yeah. Hey, Kieran. Good morning. Jason here. Yeah, I am happy to give you a little bit of color. In FY 2027, the majority of the realized benefits will come from the organizational changes that we have spoken to. Then growing into FY 2028, that uplift will be more from external spend, process improvement, and revenue. Okay, that is helpful. Thanks. Then just to touch on one of the earlier questions on the online market. If it is as big as you say, a NZD 1 billion plus, would you not expect your revenue for that division to be more than NZD 3 million, even under the current regulatory settings? I guess what I am getting at is, how much additional investment do you think is required to get your product on par with what competitors are offering? Yeah, the performance of the business today is not necessarily reflective of the product offering or experience we are providing customers. It is more reflective of the fact that we are not able to advertise, and there are operators in the gray market who are advertising. That is why and how the market is growing, and hence why the government wants to regulate it to exit those operators that have been operating illegally. Okay, that is all good. I might just wrap it up there. Cheers. Thanks, Kieran Carling. I am showing no further questions. Thank you all very much for your questions. I will turn the conference back to Jason for his closing comments. All right. Thank you everyone for your questions and ongoing interest in SkyCity this morning. Much appreciated. Apologies for the disruptions that we have had with the connection. Appreciate it. I look forward to catching up and meeting with many of you over the coming days and into next week. Thanks very much. Thank you for your participation in today's conference. This does conclude the program. You may now disconnect your lines.