Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


SkyCity posts lower first-half profit, sees 2H pickup

SkyCity posts lower first half profit as expected, signals earnings growth in second half

By Tina Morrison

Feb. 12 (BusinessDesk) – SkyCity Entertainment Group, New Zealand’s only listed casino company, posted lower first half profit in line with guidance and said earnings will grow in all its businesses in the second half.

Normalised profit was $66.4 million in the six months ended Dec. 31, in line with the $65 million to $68 million forecast in December and down from $72.1 million a year earlier, the Auckland-based company said in a statement. The figures exclude earnings from the Christchurch casino sold in December 2012. Normalised revenue fell to $467 million from $493.4 million in the year earlier period.

SkyCity, which has four casinos in New Zealand and two in Australia, said it expects earnings growth in the second half year as positive changes at its Adelaide and Darwin casinos outweigh a challenging macro-economic environment in Australia and as the company benefits from a more buoyant New Zealand economy.

“While the 1H14 had been a challenging period due to the high NZD and continued soft consumer spending on both sides of the Tasman, solid progress had been made in establishing the platform for growth and the outlook for 2H14 is encouraging,” chief executive Nigel Morrison said in the statement.

The New Zealand dollar bought an average 88.20 Australian cents in the first half, compared with 78.36 cents in the year earlier period, crimping returns from the company’s Australian units, it said.

Normalised revenue in January, the first month of the second half, rose 11.9 percent from the year earlier month, SkyCity said. Including the impact of a higher New Zealand dollar, revenue for the month increased 5.4 percent, the company said.

Trading in February has also started well compared to the prior year as the company’s casinos benefited from strong Asian visitation over the Chinese New Year period, which started on Jan. 31, SkyCity said.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Reserve Bank: Wheeler Keeps OCR At 1.75%

Reserve Bank governor Graeme Wheeler kept the official cash rate unchanged at 1.75 percent, as expected, and reiterated his view that the benchmark rate doesn't need shifting for the foreseeable future. More>>

ALSO:

Retail: Pumpkin Patch Brand, IP Sold To Catch Group

The receivers of failed children's clothing retailer Pumpkin Patch have confirmed that the company's brand and intellectual property have been sold to Australian online retailer Catch Group. More>>

ALSO:

Oil: 2017 Block Offer Petroleum Tender Launched

New Zealand is well-placed to take advantage of the economic benefits of oil and gas exploration, Energy and Resources Minister Judith Collins announced today at the launch of the 2017 Block Offer petroleum tender. More>>

ALSO:

OECD And Zero Carbon Reports: Environmental Pressures Rising In New Zealand

New Zealanders enjoy a high environmental quality of life and access to pristine wilderness. However, New Zealand’s growth model, based largely on exploiting natural resources, is starting to show its environmental limits with increasing greenhouse gas emissions and water pollution ... More>>

ALSO:

Statistics: Record Net Annual Migration Levels Continue

In the February 2017 year, 71,300 more migrants arrived in New Zealand than left, Stats NZ said today. This equalled the previous annual record set in January 2017. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news