Bringing a dark chapter to an end

The fine follows a $67 million settlement in 2024 with the financial crimes regulator AUSTRAC, over the casino's contravention of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act). 

AUSTRAC said in 2024 that the casino had failed to carry out the required checks on 121 customers, "including where SkyCity knew customers were the subject of law enforcement interest, or where there were indications that some posed a higher risk of money laundering''.

AUSTRAC acting Chief Executive Peter Soros said at the time:

Criminals will always seek to take advantage of the gambling sector to clean their dirty money. If casinos and other gambling entities have weak anti-money laundering systems and controls, they leave themselves vulnerable to criminal exploitation. Money laundering is not a victimless crime. It happens because criminals are trying to clean their dirty money obtained by lucrative illegal activities like trafficking drugs or humans, and it is often reinvested to further criminal enterprises and amplify these harms.

The AUSTRAC process ran in parallel with an investigation by South Australia's Commissioner for Liquor and Gambling into SkyCity's suitability to hold the casino licence.

SkyCity given a to-do list

As part of the agreement announced today to the ASX, SkyCity will have to appoint a local Chief Executive, as well as an independent local board.

SkyCity will also have to phase out the use of cash for transactions greater than $4999, and there will be a prohibition on gambling junkets, which the company has already phased out.

SkyCity Chief Executive Officer Jason Wallbridge said the in-principle agreement was an important step for the company and reflected the work done over four years to improve the casino's compliance culture.

We accept the findings that led to this outcome and take seriously the obligations we have committed to. The structural changes for the Adelaide Casino – including an independent board and locally-accountable leadership – reflect a genuine commitment to operating as a responsible casino operator. We are grateful for the constructive engagement of the Commissioner's office throughout this process.

SkyCity will also have to appoint an independent compliance auditor reporting to the SkyCity Adelaide board.

SkyCity shares traded as high as 49 cents on the news before settling back to be 15.9% higher at 47.5 cents.

SkyCity is valued at $52.5 million.

The post Why is this ASX gambling stock jumping 15% today? appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back are listed below. Here's why they are rising:

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price is up 5% to $6.43. This appears to have been driven by a broker note out of UBS this morning. According to the note, the broker has upgraded the infant formula company's shares to a buy rating (from neutral). The broker made the move on valuation grounds following a significant de-rating in recent months. UBS feels that the selling, which was driven by concerns over a product recall, has been overdone.

Electro Optic Systems Holdings Ltd (ASX: EOS)

The EOS share price is up 13% to $10.58. Investors have been buying this defence and space company's shares after it announced a major sales order from the United Arab Emirates. EOS revealed that it has secured a US$124 million (~A$175 million) order for its Slinger Counter-Drone Remote Weapon System (RWS). It notes that the system will be supplied to Generation 5 Holding, which is a 100% United Arab Emirates owned provider of defence equipment, technology and services headquartered in Abu Dhabi. The order includes the RWS, cannon, spares, training, and other supplies.

IDP Education Ltd (ASX: IEL)

The IDP Education share price is up over 5% to $2.53. This has been driven by the release of a trading update and news that the language testing and student placement company is launching a $50 million share buyback. IDP Education expects its EBIT to grow marginally in FY 2026 to $122 million (from $119 million in FY 2025). A key driver of this has been its cost-out program. Management advised that it is now expecting a $30 million net reduction in the cost base in FY 2026, which is ahead of the $25 million target previously announced.

Skycity Entertainment Group Ltd (ASX: SKC)

The Skycity share price is up 16% to 47.7 cents. Investors have been buying the casino operator's shares following the release of an update on its Adelaide operation. SkyCity revealed that it has entered into an agreement with the Commissioner for Liquor and Gambling in South Australia to resolve all outstanding regulatory matters. The company's CEO, Jason Walbridge, said: "Reaching this in-principle agreement is an important step for SkyCity and reflects the significant work our team has done over the past 4 years to transform our compliance culture, strengthen our governance, and earn back the trust of our regulators. We accept the findings that led to this outcome and take seriously the obligations we have committed to."

The post Why A2 Milk, EOS, IDP Education, and SkyCity shares are charging higher today appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are falling:

EQ Resources Ltd (ASX: EQR)

The EQ Resources share price is down 5.5% to 25.5 cents. This follows news that the tungsten producer announced that it will not go ahead with the proposed acquisition of Tungsten Metals Group. EQR Resources' managing director, Craig Bradshaw, said: "Following thorough engagement with TMG Group throughout 2025 and a careful review of our strategic priorities during the second and third quarters of FY2026, the Board has determined that proceeding with the acquisition is not in the best interests of shareholders at this time."

Inghams Group Ltd (ASX: ING)

The Inghams share price is down 4% to $1.81. This may have been driven by a broker note out of Bell Potter. According to the note, the broker has downgraded the poultry producer's shares to a hold rating (from buy) with a reduced price target of $2.00 (from $2.75). It said: "We downgrade our rating from Buy to Hold. Recent commentary from other ASX listed entities would imply a softening in foodservice and out-of-home channels as consumer confidence has weakened over March-April."

ResMed Inc (ASX: RMD)

The ResMed share price is down 4% to $28.53. Investors have been selling the sleep disorder treatment company's shares following the release of its third-quarter update. ResMed reported an 11% (8% in constant currency) increase in revenue to US$1.4 billion. However, higher expenses meant that net income increased at a slower rate of 9% to US$398.7 million. ResMed's CEO, Mick Farrell, said: Our third quarter results reflect the continued strength of our global business, driven by ongoing demand for our market-leading products and disciplined execution of our strategy."

Skycity Entertainment Group Ltd (ASX: SKC)

The Skycity share price is down over 3% to 52.2 cents. This morning, the casino and resorts operator downgraded its earnings guidance. It now expects underlying EBITDA to be $180 million to $190 million. This is down from its previous guidance of $190 million to $210 million. The company blamed the negative impact that rising fuel prices are having on consumers.

The post Why EQ Resources, Inghams, ResMed, and Skycity shares are tumbling today appeared first on The Motley Fool Australia.

At the time of writing, the SkyCity share price is down 5.33% to 71 cents. The stock is now hovering near the lower end of its 52-week range, reflecting a tough year for shareholders.

Here's what the company reported for the 6 months ended 31 December 2025.

Revenue dips and earnings fall

SkyCity delivered group revenue of $411.7 million, down 2.4% on the prior corresponding period.

Underlying EBITDA came in at $85.5 million, a decline of 28.4%, while underlying net profit after tax (NPAT) fell 67.5% to $14.4 million.

On a statutory basis, reported net profit after tax was $12.1 million, up from $6.1 million a year ago, largely due to one-off items in the prior period.

Management said the result reflects a "transitional" half, with regulatory changes, cost pressures, and investment weighing on margins.

No interim dividend was declared.

Regulatory changes and higher costs dent earnings

A major change during the half was the rollout of mandatory carded play across SkyCity's New Zealand casinos from July 2025.

While management says this supports long-term sustainability and provides better customer data, it had a short-term impact on gaming revenue and EBITDA per visitation.

The company also flagged higher compliance costs, including continued investment in anti-money laundering systems and host responsibility frameworks.

In Adelaide, earnings were affected by compliance-related costs, gaming tax, and legal matters. Management confirmed a carded play system is expected to be implemented there from December 2026.

Convention centre opens as debt levels stay in focus

There was one major milestone during the period. The New Zealand International Convention Centre officially opened in February, with strong forward bookings for FY26 and FY27.

SkyCity expects the convention centre to support improved performance in the second-half, alongside cost-out initiatives and the absence of some one-off costs.

On the balance sheet, total net debt sits at $594 million, with net debt to EBITDA of 2.83x. The group said covenant ratios remain within banking limits.

Average debt borrowing costs fell to 5.4%, and liquidity headroom remains solid, with more than $340 million in funding headroom.

What's the FY26 outlook?

SkyCity reaffirmed its FY26 guidance, originally provided in August and reconfirmed at the annual general meeting (AGM).

The company expects:

• FY26 underlying EBITDA of $190 million to $210 million

• Reported EBITDA of $170 million to $190 million

• No dividends to be paid in FY26

Management said FY26 will continue to be a transition year as it finalises key projects and navigates short-term headwinds. The goal is to reset the business and lay the groundwork for improved earnings beyond FY26.

The company is also preparing for the potential launch of online casino gaming in New Zealand, which could go live from December 2026, pending regulatory approval.

Foolish takeaway

SkyCity's half-year result was broadly in line with expectations, but earnings still remain under pressure.

With no dividend and debt still sitting high, it's not hard to see why the share price has slipped.

The post ASX casino stock sinks 5% after profit plunges 67% appeared first on The Motley Fool Australia.

The company, which owns casino assets including the Auckland and Adelaide casinos, has experienced a turbulent couple of years following an anti-money-laundering case brought against it by the Australian regulator, Austrac.

In mid-2024, the company was ordered by the Federal Court to pay a $67 million fine for breaches of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006. It has since implemented measures to ensure its operations comply with the legislation.

The stock is currently changing hands for 61.2 cents, up 4.7% on Friday, but not far off its low point over the past 12 months of 57 cents, and well below the 12-month high of $1.38.

The company's shares were also booted out of the S&P/ASX 300 Index (ASX: XKO) in the most recent rebalance in September.

The worst is over, broker says

Macquarie analysts said a recent capital raise to shore up the balance sheet and potential asset sales flagged in August, which the company said would raise an expected NZ$200 million over the next 12-18 months, were a positive for the stock.

The recapitalisation and foreshadowed assets sales, which could release NZ$200m of capital in time, removes debates around leverage and covenant issues.

Macquarie analysts said near term, the company's earnings were disrupted, but they believed this would be the low point.

SkyCity's flagship property is Auckland, making up around 75% of annual earnings, and of which should be touching a cyclical low point in earnings, with clear catalysts/drivers to support the start of recovery in FY27. Importantly, the opening of the New Zealand International Convention Centre, which is fully integrated within SkyCity Auckland, and completion of other infrastructure projects supports higher precinct visitation from early 2026, which will benefit integrated resort earnings.

Macquarie analysts said further upside would come if the New Zealand economy stabilises and returns to growth.

SkyCity was also likely to benefit from the imminent issuance of online gaming licences in New Zealand, Macquarie said, with the company's brand recognition and first mover advantage – given it already has a small online gaming business – giving it an edge over competitors.

Risks to the downside included possible further spending required at the Adelaide casino on regulatory compliance.  

Macquarie has an outperform rating on the stock and is expecting total shareholder returns of 49.3% over the next 12 months.

SkyCity is not currently paying a dividend.

The post Macquarie says it's time to buy this gaming stock, which is trading near 12-month lows appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

Guzman Y Gomez Ltd (ASX: GYG)

The Guzman Y Gomez share price is down 23% to $22.19. This follows the release of the quick service restaurant operator's full year results. Guzman Y Gomez posted a 23% increase in network sales to $1,180.7 million and a 151.8% jump in net profit after tax to $14.5 million. However, only modest US revenue growth and a widening US loss appears to have spooked investors. And given how much of its extremely lofty valuation was based on the company cracking the US market in the future, it isn't a surprise to see its shares come crashing down to earth today. Though, they still trade at over 150x earnings even after today's decline.

Inghams Group Ltd (ASX: ING)

The Inghams share price is down 20% to $2.85. Investors have been selling this poultry producer's shares following the release of its full year results. Inghams posted a 1.5% decline in revenue to $3,152.4 million and an 11.6% drop in underlying net profit after tax to $95.2 million. This led to the company cutting its dividend by 5% to 19 cents per share.

Monash IVF Group Ltd (ASX: MVF)

The Monash IVF share price is down 13% to 70.2 cents. This morning, this embattled fertility treatment company released its FY 2025 results and posted a 6.7% increase in revenue to $271.9 million but an 8.1% decline in underlying net profit after tax to $27.4 million. No final dividend was declared. Looking ahead, management expects its underlying net profit to fall again in FY 2026. It is guiding to a profit of $20 million to $23 million. Acting CEO, Malik Jainudeen, commented: "Monash IVF recorded Revenue and Underlying EBITDA growth in FY25, in what was a challenging second half given the two adverse clinical incidents that were reported and in the context of a weaker ART Sector in Australia and Southeast Asia."

Skycity Entertainment Group Ltd (ASX: SKC)

The Skycity share price is down 30% to 64 cents. This follows the completion of the institutional component of a placement and entitlement offer which raised NZ$195 million at a 30% discount of 70 NZ cents per new share. SkyCity's CEO, Jason Walbridge, commented: "We are pleased with the success of the Institutional Offer, and the strong take up from eligible institutional investors. The equity raise will strengthen SkyCity's balance sheet, allowing us to better navigate the current environment and execute on our near-term."

The post Why Guzman Y Gomez, Inghams, Monash IVF, and Skycity shares are sinking today appeared first on The Motley Fool Australia.

SkyCity Entertainment is a New Zealand-based company that engages in operating entertainment casino complexes in New Zealand and Australia. 

It's important to note that its primary reporting currency is NZD.

When issuing target prices, analysts usually use the company's base currency for consistency with its financial reporting, earnings, and valuation models.

Therefore Macquarie – for accuracy – lists its target price at NZ$1.45. 

At the time of writing, it is trading at $1.04 NZD

This insinuates an upside of 39.4%. 

What did Macquarie have to say about SkyCity Entertainment?

On the ASX, SkyCity Entertainment shares are down almost 30% since the start of 2025. 

However, Macquarie believes it could be a buy-low option. 

SkyCity CEO Jason Walbridge presented at the 2025 Macquarie Australia Conference, and a trading update was also provided.

According to a report from Macquarie, the key debate on SkyCity is whether earnings can stabilise around current levels, noting medium-term catalysts including NZICC/online.

We see medium-term earnings catalysts skewed to the upside vs downside, and covenant headroom, despite increasing leverage.

We expect SkyCity to participate in online gaming, which it should launch in 2H 2026. The current grey market size is around NZ$700m (likely understated), and assuming 20% market share at a 20-25% margin implies NZ$28-35m annual EBITDA

What are other brokers saying?

Currently, the penny stock is trading at $0.97 a share on the ASX. 

The share price hit a 52-week low on Tuesday on the back of downgraded FY 2025 earnings guidance. 

Penny stocks can be popular with investors willing to take on extra risk for potential additional rewards.

However, penny stocks may also come with increased volatility. 

Bell Potter has a target price of $1.14 AUD, which indicates an approximate upside of 17.5%. 

TradingView has a 12-month target price of $1.23, and SelfWealth online brokerage platform has a target price of $1.18. 

It seems brokers are optimistic about a rebound for the casino and resorts stock. However due to the volatility of penny stocks, buyers should be aware there could be more pain in the short term.

The post After presenting at the 2025 Macquarie Conference, Macquarie tips 39% upside for this consumer discretionary stock appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

HMC Capital Ltd (ASX: HMC)

The HMC Capital share price is down almost 7% to $4.82. This follows the release of a trading update from the alternative asset manager this morning. HMC Capital revealed that annualised FY 2025 operating pre-tax earnings per share is currently tracking at 66 cents. This is down from its previous guidance of 70 cents at the beginning of April. Management advised that this is attributable to the fair value movement of carrying positions in HMCCP and financial assets during April. Its FY 2025 dividend guidance of 12 cents per share has been reaffirmed. The company notes that this is consistent with its strategy to maintain the dividend at this level and re-invest retained earnings into value accretive growth opportunities.

Platinum Asset Management Ltd (ASX: PTM)

The Platinum share price is down 5% to 63.5 cents. This morning, the fund manager released its latest funds under management update (FUM) and revealed a sizeable decline in FUM. Platinum reported FUM of $9,647 million for April, down 6.1% from $10,276 million at the end of March. In addition, Platinum advised that last night it received notice of the termination of an institutional mandate of approximately $958 million. This will take effect on 9 May 2025. However, management is optimistic that the impact to its profit will be offset by an acceleration of planned cost savings to be delivered in FY 2026.

Sigma Healthcare Ltd (ASX: SIG)

The Sigma Healthcare share price is down 5% to $2.99. Investors have been selling the pharmacy chain operator's shares following the release of a trading update. It said: "For the nine months to 31 March 2025, Normalised EBIT (unaudited) growth for the Group compared to the prior corresponding period (pcp) for CWG1 is broadly consistent with the 36% growth achieved by CWG [Chemist Warehouse Group] for 1H FY25 compared to 1H FY24."

Skycity Entertainment Group Ltd (ASX: SKC)

The Skycity Entertainment share price is down almost 5% to 99.5 cents. This has been driven by the release of an update on the casino and resorts operator's guidance this morning. Skycity revealed that it has downgraded its FY 2025 earnings guidance to around 4% below the bottom of its prior NZ$225 million to NZ$245 million range. This includes ~NZ$18 million of costs related to the Adelaide B3 transformation programme for FY 2025.

The post Why HMC Capital, Platinum, Sigma, and Skycity shares are dropping today appeared first on The Motley Fool Australia.

At the time of writing, the ASX 300 casino and resorts stock is down 9% to a 52-week low of 95 cents.

Why is this ASX 300 stock sinking?

Investors looking closely for signs of a turnaround in the casino and resorts market may be feeling even more nervous today after a profit warning from SkyCity.

According to the release, SkyCity has downgraded its FY 2025 earnings guidance, flagging that its group EBITDA will now come in around 4% below the bottom of its prior NZ$225 million to NZ$245 million range.

This includes ~$18 million of costs related to the Adelaide B3 transformation programme for FY25, as previously announced.

What's going on?

While overall visitation remains steady, customers are spending less — particularly in Auckland.

The company notes that Auckland has seen reduced spend per visit across both its hospitality and gaming businesses, whilst Hamilton and Queenstown casinos have continued to perform broadly in line with group expectations.

SkyCity also reported that its Adelaide operations have been hit by reduced VIP spend and lower visitation. This is despite overall EGM gaming turnover in South Australia growing year-over-year.

Management advised that its VIP performance in Adelaide has been impacted by the uplift in our anti-money laundering (AML) and harm minimisation programme.

Nevertheless, it is continuing with the Adelaide B3 uplift programme. Spend on this programme will be in the order of NZ$60 million over the period FY 2025 to FY 2027 and has not altered from its previous update.

Tough trading conditions

This update underscores just how tough things remain for casino operators across the board — and it does little to ease the pressure on rival Star Entertainment Group Ltd (ASX: SGR), whose precarious balance sheet and recent operating struggles have raised concerns about its financial survival.

Commenting on the news, the ASX 300 stock's Chief Executive Officer, Jason Walbridge, said:

The difficult market conditions that businesses like ours – which are reliant on discretionary consumer spending – are experiencing continue to have a significant impact on both our revenue and earnings. We continue to be pleased with the levels of visitation we are seeing across our precincts and are adjusting our underlying cost base where appropriate, in response to the lower revenue levels we are currently experiencing.

Notwithstanding these challenging conditions, we remain optimistic that as consumer confidence returns and spend begins to lift, SkyCity is well placed to maximise the opportunities in front of us, like the New Zealand International Convention Centre (NZICC) opening in February 2026.

The post Guess which ASX 300 stock is down 9% on guidance downgrade appeared first on The Motley Fool Australia.

The three shares below are making big moves, but only one of them is heading in the right direction. Let's see what is happening:

Aristocrat Leisure Ltd (ASX: ALL)

The Aristocrat share price is down 4% to $75.51. This has been driven by the release of the ASX 300 gaming share's annual general meeting update.

At the meeting, management revealed that its North American gaming operations have started FY 2025 somewhat softly. It said:

In North American Gaming Operations, the average fee per day that we earn on units leased to customers was lower than the comparable quarter in financial year 2024, reflecting Aristocrat's customer and regional mix, and is likely to persist through the first half. However, we anticipate a sequential improvement in fee per day over the second half of fiscal 25, with Aristocrat maintaining market-leading fee per day performance and continuing to take share, whilst maintaining our strong segment profit margins.

Nevertheless, Aristocrat continues to expect to deliver NPATA growth over the full year to 30 September 2025 on a constant currency basis. This excludes the Plarium business, which has been sold.

However, this NPATA growth is expected to be skewed to the second half of the year, mainly reflecting its Gaming business.

Skycity Entertainment Group Ltd (ASX: SKC)

The Skycity share price is down 8% to $1.21. This follows the release of the casino and resorts operator's half year results.

SkyCity reported a 5.2% decline in revenue to NZ$422 million and a sizeable 73.1% decline in net profit to just NZ$6.1 million. Unsurprisingly, no interim dividend was declared.

Chief Executive Officer, Jason Walbridge, said:

We continue to operate in challenging market conditions with subdued consumer confidence, so we're pleased to see strength in our visitation numbers as people continue to enjoy coming to SkyCity for their entertainment.

In light of the ASX 300 gaming share's poor first half performance, management has cut its FY 2025 earnings guidance. It now expects underlying EBITDA of NZ$225 million to NZ$245 million (from NZ$245 million to NZ$265 million).

Tabcorp Holdings Ltd (ASX: TAH)

The Tabcorp share price is up 3% to 67.5 cents. Investors have been bidding the ASX 300 gaming share higher after it released a strong half year result.

Tabcorp reported a 10.1% increase in revenue to $1.33 billion and a 25.6% jump in net profit after tax (before significant items) to $22.1 million. This allowed the company's board to declare an unfranked 1 cent per share interim dividend.

Management advised that the successful transition to the new, modernised Victorian Wagering and Betting licence was a key driver of this growth. It provided an EBITDA uplift of $36.4 million for 4.5 months in the first half, which was broadly in line with expectations given soft trading conditions.

The company's CEO, Gillon McLachlan, said:

Tabcorp is getting fitter. We have increased our wagering and media capability at the leadership level, developed a simpler, more cost effective operating model, and are operating with a bias for action and increased accountability.

The post 3 ASX 300 gaming shares making big moves today appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are falling:

Bellevue Gold Ltd (ASX: BGL)

The Bellevue Gold share price is down 2% to $1.50. This is despite there being no news out of the gold developer today. However, it is worth noting that Bellevue Gold's shares have been on fire in recent weeks. So much so, they remain up 32% since this time two months ago. This could mean that some investors are taking a bit of profit off the table today.

Domain Holdings Australia Ltd (ASX: DHG)

The Domain share price is down almost 7% to $2.84. Investors have been selling this property listings company's shares following the release of an update at its annual general meeting. Domain revealed that it delivered solid depth revenue growth of 15% year-on-year during the first quarter. This underpinned total residential revenue growth of 12%. Whereas Digital revenue was up around 9% year-on-year. This ultimately led to total revenue increasing around 8% year-on-year according to management. Pleasingly, October new listings growth has continued to accelerate, underpinning year-on-year depth revenue growth of 19% on a like-for-like basis. Margin guidance has also been reiterated. Despite all this, it seems that some investors wanted more from Domain.

Skycity Entertainment Group Ltd (ASX: SKC)

The Skycity share price is down 5% to $1.22. This casino and resorts operator's shares are falling today despite there being no news out of it. Though, it is worth noting that its shares have been under pressure for some time. So much so, they are now trading within a whisker of a multi-year low. This means they are now down by a disappointing 30% over the past 12 months.

Wildcat Resources Ltd (ASX: WC8)

The Wildcat Resources share price is down 2.5% to 31.2 cents. This is also despite there being no news out of the lithium developer. However, quite a lot of lithium shares are missing out on the market rally today. This appears to have been driven by a relatively subdued session on Wall Street for miners of the battery making ingredient. Following today's decline, Wildcat shares are now down by over 50% since the start of 2024.

The post Why Bellevue, Domain, Skycity, and Wildcat shares are tumbling today appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are falling:

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price is down 8% to 11 cents. This is despite there being no news out of the lithium miner. However, there are a number of lithium stocks that are in the red today. In addition, last week I named three reasons why Core Lithium shares could be a sell. They have now fallen over 18% since that article was published. The good news, though, is that its shares are now trading in line with what some bearish analysts believe to be fair value.

IDP Education Ltd (ASX: IEL)

The IDP Education share price is down 4.5% to $15.00. This morning, this student placement and language testing company released an update on market conditions following recent changes to regulatory settings. Management notes that a more restrictive policy environment in its key destination countries is reducing the size of the international student market. This has negatively impacted testing and student placement volumes during the second half. As a result, management is guiding to flat earnings in FY 2024. IDP is one of the most shorted shares on the ASX.

Seek Ltd (ASX: SEK)

The Seek share price is down 3% to $23.08. This may have been driven by profit taking from some investors following a strong gain on Wednesday. That was driven by news that the job listings giant is selling its Latin American assets. In addition, this morning analysts at Ord Minnett reaffirmed their lighten rating with a $20.00 price target. This implies potential downside of over 13% for investors from current levels over the next 12 months.

Skycity Entertainment Group Ltd (ASX: SKC)

The Skycity Entertainment share price is down 15% to $1.36. This follows the release of a trading and dividend update. The struggling casino and resorts operator revealed that it now expects FY 2024 net profit after tax to between NZ$120 million and NZ$125 million. This is down from its previous guidance. It is also guiding to further earnings declines in FY 2025 due to challenging trading conditions. In light of this and likely AUSTRAC penalties, the company is suspending its dividend until at least FY 2026.

The post Why Core Lithium, IDP Education, Seek, and Skycity shares are sinking today appeared first on The Motley Fool Australia.

The SkyCity Entertainment Group Ltd (ASX: SKC) share price is trailing the pack.

Shares in the New Zealand-based casino and entertainment company closed yesterday trading for $1.605 a share. In earlier trade, shares were swapping hands for $1.27, down a precipitous 20.6%. After some likely bargain hunting, shares are currently trading for $1.327, down 17.3%.

Also dragging on the benchmark is IDP Education Ltd (ASX: IEL).

Shares in the language testing and student placement provider closed yesterday at $15.69. In earlier trade shares were trading for $13.63, down 13.1%. Like SkyCity, the IDP Education share price has recouped some of those losses, currently down 6.1% at $14.74 a share.

Here's why the ASX All Ords shares are under selling pressure.

ASX All Ords share tanks on international student hit

First up, IDP Education.

Investors are bidding down the ASX All Ords share after the company released a regulatory and market update.

Management noted that under a more restrictive policy environment instituted by governments in the company's key destination countries of Australia, the United Kingdom and Canada, the size of its international student market is declining. They said, "This has negatively impacted IELTS testing and student placement volumes during H2 FY 2024."

For FY 2024, IDP now expects a 15% to 20% increase in student placement volumes accompanied by a 15% to 20% decline in IELTS volumes compared to the prior year.

With the company forecasting a 20% to 25% decline in the size of the international education market under the revised policies, IDP said it will implement a cost reduction program to align expenses to the near-term revenue outlook.

The ASX All Ords share expects adjusted earnings before interest and taxes (EBIT) for FY 2024 to be similar to FY 2023.

Management said they remains confident in the long-term growth drivers for the industry.

SkyCity share price plunges on earnings downgrade

Moving on to the second ASX All Ords share dragging on the benchmark today, SkyCity stock is under heavy selling pressure after the company downgraded its FY 2024 guidance.

The new earnings guidance is for underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) in the range of NZ$280 million to NZ$285 million. That's down from prior expectations of full-year EBITDA of NZ$290 million to NZ$310 million.

FY 2024 guidance for underlying net profit after tax (NPAT) was cut to between NZ$120 million and NZ$125 million. That's down from the previous NZ$125 million to NZ$135 million.

Looking further ahead, the ASX All Ords share could be under extra pressure with management forecasting that FY 2025 EBITDA will come in between NZ$250 million and NZ$270 million.

On the dividend front, the SkyCity board anticipates reinstating dividends in FY 2026, following their suspension for 2H FY 2024.

The post 2 ASX All Ords shares crashing 13% and 21% today on big news appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back are listed below. Here's why they are rising:

ALS Ltd (ASX: ALQ)

The ALS share price is up 5% to $14.47. This has been driven by the release of the testing services company's FY 2024 results this morning. ALS reported a 6.8% increase in revenue to $2,586 million and modest 0.2% increase in underlying EBIT to $491.8 million. The company's CEO and managing director, Malcolm Deane, commented: "The Group has continued to deliver revenue growth and maintain industry-leading margins despite challenging market conditions."

OFX Group (ASX: OFX)

The OFX Group share price is up almost 13% to $1.91. This has also been driven by the release of full year results this morning. Investors have responded positively to the foreign exchange company reporting a 6.3% increase in net operating income to $227.5 million and a 3.4% lift in underlying EBITDA to $64.6 million. This was in line with its guidance. CEO Skander Malcolm said: "Despite a tougher macroeconomic backdrop in our two largest markets, it was pleasing to deliver NOI and underlying EBITDA in line with guidance. Without the near-term impact of Paytron on our earnings, we would have delivered positive operating leverage."

Skycity Entertainment Group Ltd (ASX: SKC)

The Skycity Entertainment share price is up 4% to $1.62. This follows news that Skycity has reached an agreement with the Department of Internal Affairs in New Zealand to settle its anti-money laundering and countering financing of terrorism proceedings. According to the release, the settlement includes an admission of guilt and a penalty of approximately NZ$4 million.

TechnologyOne Ltd (ASX: TNE)

The TechnologyOne share price is up 5% to $16.84. Investors have been buying this enterprise software provider's shares following the release of its half year results. The company reported a 16% increase in revenue to $244.8 million, a 21% lift in annual recurring revenue (ARR) to $423.6 million, and a 17% jump in profit before tax to $61.5 million. Management remains confident on the future and believes it is on track to surpass its ARR target by FY 2025. CEO Ed Chung said: "We are on track to surpass total ARR of $500m+ by FY25, from our current base of $424m. We will continue to invest for the long-term in R&D to build platforms for growth to continue to double in size every 5 years."

The post Why ALS, OFX, Skycity, and TechnologyOne shares are surging today appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

CSL Ltd (ASX: CSL)

The CSL share price is down 5% to $290.02. Investors have been hitting the sell button after the biotechnology company released disappointing results from a major trial. CSL was running the Phase 3 AEGIS-II trial evaluating the efficacy and safety of CSL112 compared to placebo in reducing the risk of major adverse cardiovascular events (MACE) in patients following an acute myocardial infarction (AMI). Unfortunately, the study did not meet its primary efficacy endpoint of MACE reduction at 90 days.

Fletcher Building Ltd (ASX: FBU)

The Fletcher Building share price was down 6% to $3.70 before being paused from trade. There has been speculation that the building products company could be planning an equity raise. Fletcher Building will reveal all once its shares return to trade.

Skycity Entertainment Group Ltd (ASX: SKC)

The Skycity share price is down 2.5% to $1.92. This morning, it was revealed that the Department of Internal Affairs intends to commence civil proceedings against the company for non-compliance with the Anti-Money Laundering and Countering Financing of Terrorism Act.

Wildcat Resources Ltd (ASX: WC8)

The Wildcat share price is down 12% to 47. 5 cents. This is despite there being no news out of the lithium explorer on Monday. Though, it worth noting that a number of ASX lithium shares are falling today. And with Wildcat's shares rocketing higher last week, they seems to be falling more than most during today's session.

The post Why CSL, Fletcher Building, Skycity, and Wildcat shares are falling today appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back today are listed below. Here's why they are rising:

Credit Corp Group Limited (ASX: CCP)

The Credit Corp share price is up 7% to $18.42. This may have been driven by a broker note out of Morgans this morning. While Credit Corp's half year results missed expectations, the broker remains very positive on the future. As a result, it has retained its add rating and lifted its price target on the debt collector's shares to $20.60.

Playside Studios Ltd (ASX: PLY)

The Playside Studios share price is up a further 4% to 75.5 cents. Investors have been buying this game developer's shares this week after it delivered a record quarterly result. Playside posted record quarterly revenue of $20.7 million and positive unaudited EBITDA of $8 million. The latter was close to double what was recorded in the previous quarter.

QBE Insurance Group Ltd (ASX: QBE)

The QBE share price is up 1% to $16.00. This morning, Goldman Sachs reiterated its buy rating and $18.52 price target on the insurance giant's shares. This was in response to the release of a strong update from one of its global peers.

Skycity Entertainment Group Ltd (ASX: SKC)

The Skycity share price is up 3.5% to $1.83. Investors have been buying this casino and resorts operator's shares after it released an update on its AUSTRAC proceedings. That update reveals that the two parties have come to an agreement. This will see Skycity hit with a civil penalty and legal costs totalling an estimated A$73 million.

The post Why Credit Corp, Playside, QBE, and Skycity shares are pushing higher today appeared first on The Motley Fool Australia.

ASX dividend shares are the obvious place to go but, as tempting as they are, investors need to be wary of high dividend yields.

Stocks that pay out 12%, 15% and 20% yields could well be in that position because its share price has fallen off a cliff.

The other worry is that such a high payout is a one-off and is not sustainable beyond a year or two.

Fortunately, the experts at the IML Equity Income Fund revealed a couple of income gems that they possess that are looking ripe for a great 2024.

They both hover around the 7% mark for yield, which is certainly respectable, but importantly the businesses have excellent prospects.

So if you have $20,000 to invest, you could consider going halves in each of these:

A foot in each revival 

With interest rates pretty close to the peak and maybe even heading this year, both real estate and retail could soon hit the boom part of its cycle.

As such, last month investors flocked to convenience retail real estate investment trust (REIT) Charter Hall Retail REIT (ASX: CQR).

"Charter Hall Retail REIT was up 18.9% on the back of lower bond yields and reconfirmation of its earnings and distribution guidance," an IML memo to clients read.

"Also, $225 million of asset sales at book value reduced its gearing and highlighted the continued solid demand for high-quality, well located neighbourhood shopping assets."

Charter Hall Retail is paying an unfranked 7% dividend yield.

The IML team is continuing to back the REIT for a big 2024. 

"We continue to like CQR given its large trading discount to net tangible assets, majority CPI-linked rents and attractive dividend yield."

The ASX dividend shares that could be past the worst

The Australian casino industry has been under fire the past couple of years, and New Zealand company Skycity Entertainment Group Ltd (ASX: SKC) is no exception.

The shares dived 5.6% last month, which the IML team put down to an announcement of "modestly lower" 2024 earnings guidance and the departure of its chief executive.

"It also agreed to settle its Auckland carpark dispute on terms we believe are incrementally favourable."

In Australia, the business is facing regulatory scrutiny.

"The Austrac settlement and Adelaide casino review remains the major overhang."

Despite all these headwinds, the IML analysts reckon a 22.2% drop in share price since the start of September adequately reflects future adversity.

"We expect [the Adelaide review] to be completed within six months and any penalty to be more than accounted for in the share price."

As a foreign company, the dividends from Skycity are also unfranked, but the yield does amount to a handsome 6.65% currently.

The post Here's how I'd invest $20k in ASX shares to target a 7% dividend yield in 2024 appeared first on The Motley Fool Australia.

Four ASX shares that are acting as a drag on proceedings today are listed below. Here's why they are falling:

Mesoblast Ltd (ASX: MSB)

The Mesoblast share price is down a further 6.5% to 29.5 cents. This biotech company's shares have come under pressure this week after it announced another capital raising. Mesoblast raised $55 million from institutional investors at a 26% discount of $0.30 per new share. It is now seeking to raise $42 million from retail shareholders at the same price. Mesoblast's shares are down 22% in December.

Navigator Global Investments Ltd (ASX: NGI)

The Navigator Global share price is down 8% to $1.15. This is despite there being no news out of the investment company today. Not even some insider buying news has been enough to stop its shares from falling today. The company's CEO, Stephen Darke, bought 35,000 shares on-market for a total consideration of $43,400 on Thursday.

Polynovo Ltd (ASX: PNV)

The Polynovo share price is down 2.5% to $1.51. This morning, Ord Minnett responded to the medical device company's latest sales update by retaining its lighten rating and $1 price target. Its analysts believe PolyNovo's shares are overvalued and feel the market is too optimistic on its growth outlook.

Skycity Entertainment Group Ltd (ASX: SKC)

The Skycity share price is down 2% to $1.69. Investors have been selling the company's shares after it released a trading update. Management revealed that it now expects to deliver normalised EBITDA of NZ$290 million to NZ$310 million in FY 2024. This compares to its previous guidance of just NZ$310 million.

The post Why Mesoblast, Navigator Global, Polynovo, and Skycity shares are falling today appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

Fletcher Building Ltd (ASX: FBU)

The Fletcher Building share price is down 9% to $4.06. Investors have been selling this building products company's shares after a home builder blamed it for plumbing failures that occurred in Perth between 2017 and 2022. The home builder estimates that it could cost $700 million to fix the issues. Fletcher Building denies that it is to blame and says the "evidence clearly points to installation as causation."

Navigator Global Investments Ltd (ASX: NGI)

The Navigator Global share price is down almost 5% to $1.33. This morning, this investment company released a quarterly assets under management (AUM) update. Although the company reported a small increase in its AUM, it seems that the market was expecting a stronger performance during the three months.

Siteminder Ltd (ASX: SDR)

The Siteminder share price is down almost 4% to $4.45. This follows the release of an investor presentation from the hotel software company this morning. Investors may be disappointed by the lack of a trading update from Siteminder in the presentation. However, that is likely to come at the end of the month when the company holds its annual general meeting.

Skycity Entertainment Group Ltd (ASX: SKC)

The Skycity share price is down almost 2.5% to $1.81. Investors have been selling this struggling casino and resorts operator's shares after it announced the exit of its CEO. According to the release, Michael Ahearne has decided to step down from the role at the end of March before returning to Europe. Ahearne has been SkyCity's CEO for a little under three years. *Correction. This article previously incorrectly named Star Entertainment instead of SkyCity.

The post Why Fletcher Building, Navigator Global, Siteminder, and Skycity shares are dropping today appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are dropping:

Lake Resources N.L. (ASX: LKE)

The Lake Resources share price is down 8% to 19.75 cents. Investors have been selling this lithium developer's shares after it was dumped out of the ASX 200 index at the quarterly rebalance. The Lake Resources share price is now down a whopping 82% over the last 12 months. Concerns over the viability of its Kachi project are largely to blame.

Leo Lithium Ltd (ASX: LLL)

The Leo Lithium share price has crashed 50% to 56.5 cents. This morning, this lithium developer's shares returned from a lengthy suspension. Leo Lithium revealed a number of disappointing items such as the cancellation of its direct shipping ore plans, the possible loss of equity to the Mali government, and significant unforeseen tax charges.

Skycity Entertainment Group Ltd (ASX: SKC)

The Skycity share price is down 15% to $1.85. Investors have been hitting the sell button after the casino and resorts operator revealed that New Zealand's Department of Internal Affairs is looking to temporarily suspend its casino operator's licence for a period of ~10 days. A decision is not expected to be made for several months.

Tyro Payments Ltd (ASX: TYR)

The Tyro share price is down 4% to $1.38. This follows news that the payments company has commenced proceedings in the Supreme Court of New South Wales against Kounta Pty. It alleges that Kounta has breached its legal obligations to Tyro by offering a competing product to Tyro merchants. This is at a time that Kounta is Tyro's agent, as well as being an authorised representative under Tyro's Australian Financial Services Licence.

The post Why Lake Resources, Leo Lithium, Skycity, and Tyro shares are dropping today appeared first on The Motley Fool Australia.