SkyCity provides A$45 million to recover possible AUSTRAC fine
Date: 2023-08-14 Author: Kirill Zagoruyko Categories: CASINO
SkyCity Entertainment Group has recently taken significant steps regarding its financial position and prospects.
The management of the company closely monitors the developments related to the AUSTRAC (Australian Transaction Reporting and Analysis Center) litigation, ensuring the protection of its financial interests and responsibilities.
SkyCity Adelaide Pty Limited may be subject to punitive damages for alleged non-compliance with the Money Laundering and Terrorist Financing Act 2006.
As part of its compliance with accounting standards, specifically NZ IAS 37, SkyCity has set aside a provision of A$45m ($29.2m) for any potential AUSTRAC civil penalties and legal costs.
This is done so that the company is ready for any outcome of the proceedings, paying special attention to the responsible fulfillment of its financial obligations.
In addition, in accordance with the provisions of NZ IAS 36, SkyCity recognized an impairment of the Adelaide casino license in the amount of A$45.6 million.
This impairment assessment includes consideration of future discounted cash flows generated by the license as at 30 June 2023.
These measures are in line with SkyCity's commitment to financial transparency and compliance with regulatory standards.
In addition, these actions do not affect SkyCity's normalized earnings for fiscal year 2023.
The company's guidance remains within the previously announced normalized EBITDA range of NZ$300m ($179.5m) to NZ$310m.
The company is expected to present financial statements for the year on August 23, 2023.
The management of the company closely monitors the developments related to the AUSTRAC (Australian Transaction Reporting and Analysis Center) litigation, ensuring the protection of its financial interests and responsibilities.
SkyCity Adelaide Pty Limited may be subject to punitive damages for alleged non-compliance with the Money Laundering and Terrorist Financing Act 2006.
As part of its compliance with accounting standards, specifically NZ IAS 37, SkyCity has set aside a provision of A$45m ($29.2m) for any potential AUSTRAC civil penalties and legal costs.
This is done so that the company is ready for any outcome of the proceedings, paying special attention to the responsible fulfillment of its financial obligations.
In addition, in accordance with the provisions of NZ IAS 36, SkyCity recognized an impairment of the Adelaide casino license in the amount of A$45.6 million.
This impairment assessment includes consideration of future discounted cash flows generated by the license as at 30 June 2023.
These measures are in line with SkyCity's commitment to financial transparency and compliance with regulatory standards.
In addition, these actions do not affect SkyCity's normalized earnings for fiscal year 2023.
The company's guidance remains within the previously announced normalized EBITDA range of NZ$300m ($179.5m) to NZ$310m.
The company is expected to present financial statements for the year on August 23, 2023.
