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Current as of 26/12/14 07:40PM NZST

Anne Gibson

Property editor of the NZ Herald

SkyCity profits slump 8 per cent

Photo / Dean Purcell
Photo / Dean Purcell

SkyCity Entertainment Group profits have taken a big dive, its normalised net profit for the June 30 2014 year down 8.1 per cent to $123.1 million.

The company suffered here and in Australia.

"While general economic conditions have been buoyant in Auckland, conditions in Hamilton, South Australia and, to a lesser extent, Darwin have been more challenging. Overall disappointing results for Hamilton for the year," SkyCity said in a commentary just released to the NZX.

"SkyCity Auckland experienced good growth in revenues and EBITDA in the second half (2H14) with the momentum in gaming & non-gaming revenues continuing into the first quarter of 2015," the company said.

SkyCity blamed the strong kiwi dollar and disruption to its Adelaide casino, being revamped and expanded, for its result.

"Growth across our core businesses, underpinned by strong Auckland and international business performance with good and sustained momentum in the second half, has been masked by:

• The continued significant appreciation of the New Zealand dollar against the Australian dollar over the FY14 year and

• The ongoing disruption at the existing Adelaide Casino of the extensive construction work as we transform the property to take advantage of the reforms negotiated with the South Australian Government," SkyCity said.

It also gave an update on its $402 million project in Auckland.

"SkyCity signed the NZICC agreement with the Crown and the enabling legislation was passed by the NZ Parliament in the first half of FY14. In exchange for the commitment to build the New Zealand International Convention Centre, SkyCity Auckland's casino licence was extended to 2048 tax certainty Auckland s 2048, was provided and an expansion of gaming product approved NZICC Concept Design has been agreed with the NZ Government - on track to apply for resource consent by the fourth quarter of 2014. NZICC Master Plan now includes a 300 room five star hotel, additional car parking, retail and restaurants, lane-way access and air bridge to be built in conjunction with the NZICC"

more to come

Read also:
Place your bets - on SkyCity's annual result

- NZ Herald

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