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SkyCity normalised FY profit rises 1.3% on modest NZ growth

FIRST CUT: SkyCity normalised FY profit rises 1.3% on modest NZ growth

By Rebecca Howard

Aug. 9 (BusinessDesk) - SkyCity Entertainment Group, the casino and hotel group, posted a small gain in normalised full-year profit on modest growth in New Zealand and a lower net interest expense, offset by reduced turnover in its international business and ongoing weak trading conditions in Australia.

Normalised net profit rose 1.3 percent to $154.6 million in the year ended June 30, the Auckland-based company said in a statement. The result is slightly lower than analysts were expecting. Normalised earnings before interest, taxes, depreciation and amortization were down 2.6 percent to $321.5 million while normalised revenue was down 4.9 percent to $1.03 billion. Normalised earnings per share fell 8.6 percent to 23.3 cents per share, largely due to increased shares on issue compared to the prior period.

Reported net profit fell 69 percent to $44.9 million, mainly on an A$95 million impairment of Darwin goodwill following an annual impairment review. Reported earnings per share fell 72 percent to 6.8 cents, also due to the Darwin impairment.

SkyCity declared a final dividend of 10 cents per share, payable on Sept. 15, resulting in a total full year dividend of 20 cents per share.

The company said it expects group ebitda to "grow modestly" in the current financial year compared to the prior year. Key drivers are expected to be growth from its New Zealand businesses and a recovery in the international business, offset by further weakness in Darwin.

SkyCity shares closed yesterday at $4.10 and have declined 16.5 percent in the past 12 months.



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