SkyCity Entertainment Group’s CEO has handed in his notice. Michael Ahearne will be returning to Europe in six months. A successor has not yet been chosen. Ahearne has been living in New Zealand for six years. As reason for the move, the Irish-born SkyCity CEO stated that he and his wife wished to live close to family again.
SkyCity – and Auckland – will be saying goodbye to its CEO come March, 2024.
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Ahearne’s Goodbye
Michael Ahearne has been with SkyCity Entertainment Group (SkyCity) since the end of 2017. He joined as the Group’s Chief Operating Officer (COO). In late 2020, he became Chief Executive Officer (CEO) and has steered the group through some challenging times. Through money laundering scandals, a hugely destructive fire, and expensive legal wrangles, Ahearne has maintained the board’s confidence.
Ahearne and his wife will be moving back to their home county in Ireland. He and his wife raised their children together in multiple countries, as Ahearne moved around for his career. Ahearne says his children have grown up and are attending university now in the UK. He and his wife would like to settle closer to their children, and where their extended family are based.
In the resignation announcement, the Chair of SkyCity, Julian Cook, praised Ahearne. “Michael has led the business through a very complex and demanding period. This has included dealing with the significant fire at the New Zealand International Convention Centre and rebuild, navigating the business through COVID-19 and the recovery, and responding to regulatory matters relating to the SkyCity Adelaide business. Michael has also led significant investment and improvements in SkyCity’s compliance functions.”
In his remaining time at SkyCity, Michael said that he is expecting to focus on the increasing regulatory requirements coming into force in both New Zealand and Australia. Facial recognition technology is about to be installed in their Hamilton casino. SkyCity’s new hotel and International Convention Centre will be completed and open after he leaves.
During an interview about his departure, Ahearne waxed lyrical about SkyCity and the positive experiences it can bring to its patrons. He said giving such a long resignation notification period was the responsible thing to do. Ahearne stated that he had loved his time at the company.
Giving six months’ notice has given credence to Ahearne’s statement that there is no urgent reason for his departure. When he first took the position in 2020, three executives, including the previous CEO George Stephens whom he replaced, quit suddenly, giving only two weeks’ notice. Little information was given about the SkyCity board shake-up at the time. It was speculated that their ability to adapt to COVID along with the devastating fire at one of their developments was the cause.
The Stocks
SkyCity stock prices, SKC, are at their lowest since the 2020 COVID shutdowns. Besieged by multi-million dollar legal fines in Australia, and a looming 10-day closure of its flagship casino in Auckland, investors are spooked. Though SkyCity announced that it has the requisite funds put aside for the fines, some say that an extra AU$100 million above that could be needed.
Such a discrepancy could put a serious dent in shareholder dividends in the short term. And, though the recent financial year report gave a profit, the previous year’s loss is still fresh in shareholders’ minds. Share prices should stabilise once the fines around the SkyCity Adelaide casino have been finalised. Analysts have quantified the expected loss around the Auckland 10-day closure and even with this loss, many say the stocks are currently undervalued.
Despite the large challenges faced by SkyCity internationally, it is believed Ahearne will leave the company in a strong position.
