SkyCity says Auckland gaming machine revenue up 5%

SkyCity says Auckland gaming machine revenue up 5%

Dec. 10 (BusinessDesk) - SkyCity Entertainment Group says Auckland gaming machine revenue is starting to respond to “effective marketing, promotional and customer initiatives” after showing no sustained growth over the past five years.

“Gaming machine revenue, after a softer start to financial year 2011, is starting to gain traction with revenues up 5% for the three months ended November compared to the same period last year,” the company said in a presentation to investors.

Auckland gaming machines are a primary contributor to the company's financial results.

SkyCity said it expects the Rugby World Cup will boost earnings before interest, tax, depreciation and amortisation by between $20 million and $25 million, or between 20% and 25%.

Auckland non-gaming revenues are expected to be up 30% in the six months ending December 2012 compared with the same six months in 2010.

The company's Darwin casino has been affected by the smoking ban with year-to-date gaming revenue down 7% on the same period a year earlier, although that's better than the 15% downturn in gaming revenues across the Northern Territory.

SkyCity's non-gaming revenues from Darwin are up 5% year-to-date compared with the same period last year, the company said.

SkyCity's international business continued to grow in the five months ended November with Auckland's up more than 100% and Darwin's up more than 25%.

The company said it is on tract to meet its guidance for the full year. It is targeting net profit of at least $127.4 million for the year ending June 2011.

SkyCity shares rose 3 cents to $3.16 in morning trading. The shares have traded between $2.79 and $3.45 over the past 12 months.

(BusinessDesk)

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