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


SkyCity annual profit climbs 21% as sales beat broker target

SkyCity annual profit climbs 21% as sales beat broker target

by Paul McBeth

Aug. 17 (BusinessDesk) – SkyCity Entertainment Group, the country’s biggest casino operator, boosted annual profit 21% as its sales beat brokers' targets with Auckland gaming revenues reporting strong growth.

The Auckland-based company’s net profit was $123 million, or 20.9 cents per share, up from $101.9 million, or 16.8 cents a share, a year earlier, it said in a statement. Total sales before stripping out GST climbed 5.1% to $879.8 million, beating broker Forsyth Barr’s estimate of $798 million.

That was underpinned by Auckland’s gaming machine revenue climbing to pre-global financial crisis levels at $206.2 million.

“Auckland has had a strong second half, and this has translated into good growth and promising momentum,” chief executive Nigel Morrison said. “With a stronger Auckland economy and a more optimistic consumer outlook, our Auckland gaming machines are showing an encouraging return to levels not seen since 2008.”

SkyCity hopes to add to its Auckland offerings with a $350 million convention centre, and it will update shareholders at the annual meeting in November.

The gaming company has agreement in principle from the government for more gaming machines and an extension of its licence past its existing 2021 date in return to footing the entire bill of the centre.

Morrison said the deal is subject to “us being satisfied that we can generate an overall acceptable return for our shareholders.”

Still, the casino operator’s underlying earnings missed Forsyth Barr’s forecasts as construction at the Auckland hotel reduced the number of rooms on offer and it had to cater to the government’s hike in GST.

Earnings before interest, taxation, depreciation and amortisation rose 1.3% to $291 million, missing the $300.6 million target, while earnings before interest and tax was $222.4 million, falling short of the broker’s $229.5 million forecast.

SkyCity’s Auckland operation reported a 2% decline in EBIT to $158.7 million, while the rest of New Zealand slumped 68% to $6.7 million.

The Darwin casino’s EBIT dropped 10% to $32.7 million. Adelaide’s operations gained 15% to $33.8 million, and the company’s fast-growing international business almost doubled to $16.2 million.

SkyCity will pay a dividend of 8 cents a share, taking the annual payment to 16 cents. The shares rose 0.3% to $3.51 in trading yesterday, and have gained 6.8% this year.

Morrison didn’t give any earnings guidance for the 2012 financial year, though he said he was “excited and optimistic about our future in Auckland,” as New Zealand’s economic recovery gathers pace and the Rugby World Cup injects some 95,000 visitors to the country.

The company booked a $15 million charge on its half-stake in Christchurch Casino after the earthquakes in Canterbury, and is focusing on rebuilding the business.

(BusinessDesk) 10:02:23

© Scoop Media

Business Headlines | Sci-Tech Headlines


Auckland Transport: Successful Bridge Repair Opens Two Additional Lanes To Traffic

The opening of two additional lanes on the Auckland Harbour Bridge this morning will help relieve some motorway congestion for motorists heading home to the North Shore tonight. More>>


Statistics New Zealand: COVID-19 Sees Record 12.2 Percent Fall In New Zealand’s Economy

Gross domestic product (GDP) fell by 12.2 percent in the June 2020 quarter, the largest quarterly fall recorded since the current series began in 1987, as the COVID-19 restrictions in place through the quarter impacted economic activity, Stats NZ said ... More>>


Climate: Scientists Release ‘Blueprint’ To Save Critical Ecosystems And Stabilize The Earth’s Climate

A group of scientists and experts produced the first comprehensive global-scale analysis of terrestrial areas essential for biodiversity and climate resilience, totaling 50.4% of the Earth's land. The report was published in Science Advances ... More>>


MPI: Independent Review Launched Into Assurances For Safe Transport Of Livestock By Sea

The Ministry for Primary Industries (MPI) has launched an independent review of the assurances it receives for the safe transport of livestock by sea. MPI Director-General Ray Smith says Mike Heron QC has been appointed to lead the review, which is expected ... More>>


Computers: New Zealand PC Market Grows Nearly 40% Due To Work From Home Demand

COVID-19 had large impacts on demand for PCs as businesses prepared for lockdowns by purchasing notebooks to mobilise their workforce. In the second quarter of 2020, New Zealand's Traditional PC market experienced a 39.7% year-on-year (YoY) growth ... More>>


University Of Auckland: Whale-Watching By Satellite – Follow Their Travels Online

Scientists have successfully attached satellite tracking tags to six New Zealand southern right whales, or tohorā, and are inviting the public to follow the whales’ travels online. Part of a major research project involving the University of Auckland ... More>>

Commerce Commission: Kiwibank Admits System Failures And Agrees To Pay Customers $5.2 Million

Kiwibank has entered into a settlement agreement with the Commerce Commission after reporting that it failed to have in place robust home loan variation disclosure policies, procedures and systems. In a settlement dated 27 August 2020, Kiwibank admitted that ... More>>

Ministry of Health: Public Transport Distancing Requirements Relaxed

Physical distancing requirements on public transport have been reviewed by the Ministry of Health to determine whether they are still required at Alert Level 2 (or below). The Ministry’s assessment is that mandatory face covering and individuals tracking ... More>>


NZHIA: New Zealand Hemp Industry Set To Generate $2 Billion Per Annum And Create 20,000 Jobs

A new report says a fully enabled hemp industry could generate $2 billion in income for New Zealand by 2030, while also creating thousands of new jobs. Written by industry strategist Dr Nick Marsh, the report has prompted calls from the New Zealand Hemp ... More>>


Stats NZ: One In 14 Employed People Report High Risk Of Losing Jobs

About one in 14 workers say they expect to lose their job or business by mid-2021, Stats NZ said today. A survey of employed people in the June 2020 quarter showed 7 percent felt there was a high or almost certain chance of losing their job or business ... More>>

ASB Quarterly Economic Forecast: NZ Economy Doing Better Than Expected, But Challenges Remain

August lockdown estimated to have shaved 8% off NZ’s weekly GDP, and 0.5% off annual GDP Economy now expected to shrink 5% (year-on-year) by end of 2020 Unemployment rate now expected to peak at 7.2% The latest ASB Quarterly Economic Forecast is less ... More>>