Skyline Enterprises keeps FY dividend unchanged on flat earnings
By Paul McBeth
July 10 (BusinessDesk) - Skyline Enterprises, the Queenstown-based tourism company whose shares trade on the Unlisted platform, will pay shareholders the same dividend for the 2014 financial year as underlying earnings were largely flat from a year earlier.
The board has elected to pay a dividend of 37 cents per share, or $12.6 million, for the year ended March 31, unchanged from a year earlier, when it lifted the return by 3 cents, it said in a statement. Earnings before revaluations, amortisation, depreciation, tax and insurance proceeds slipped to $25.3 million from $26.2 million. Subject to audit confirmation, pre-tax profit climbed to $52.8 million from $17.2 million due to $27.7 million of gains from property revaluations, insurance proceeds, a reduction in write-offs and amortisation, and full ownership of the Christchurch casino, it said.
"With trading results on par with last year, the continued investment in offshore luge and reinvestment in our established businesses, directors have adopted a prudent approach in terms of the dividend payment," chairman Mark Quickfall said.
Shares of Skyline last traded at $11.20, valuing the tourism company at $381.3 million.
Skyline's Queenstown gondola business reported record visitor numbers last year, while the Rotorua gondola result was slightly ahead of the year earlier, the company said.
Its international luge was in line with the 2013 result, and construction of the Korean operation is expected to be open in late 2015.
Its Totally Tourism unit, which it acquired in 2011, reported flat earnings, and Skyline is looking for operational efficiencies to improve the performance, it said.
The Christchurch casino reported an 8 percent increase in guest numbers, though is still below the pre-earthquake levels, while its Mercure Leisure Lodge and Blue Peaks Lodge properties reported strong growth in occupancy rates.
Skyline will hold its annual meeting on Sept. 13.