Casino all set to shrug off quake

Level one of the Christchurch Casino is expected to open again this month. Photo / Supplied

The quake-hit Christchurch Casino will open before the end of this month, says SkyCity Entertainment Group chief executive Nigel Morrison.

He shrugged off damage to the building from February's quake and said level one of the two-level venue would be trading again shortly, indicating about May 28 although emphasising no date was definite.

"It should be reopening before the end of the month, probably on one of the last Saturdays in May. We'll hold a big reopening event, a big party. There really was not much damage to the property itself and we got back in there a month ago and have been able to tidy it up," he said.

"There was some minor structural damage. A couple of buildings around it need to be demolished," he said, referring to one neighbouring early childcare centre building which had already come down and a Copthorne hotel, yet to be removed.

A "good mix" of entertainment with the casino's cafe, buffet and some gaming tables would be open for business this month, he predicted. The casino is owned in a joint venture with Skyline Enterprises.

Morrison said that in the next few months level two would reopen with more gaming, restaurant and entertainment facilities, putting the venue back into full operation after being shut from the February 22 quake.

The casino had retained 75 per cent of its staff, equating to about 380 people, Morrison said, so reopening would not be an issue in terms of staff levels. Nor does he expect any downturn in entertainment demand in Christchurch.

"I think there's a lot of loyalty and support for the Christchurch casino and having another destination for entertainment - whether people go out for a meal or enjoy a few drinks and entertainment - there's a definite need for that there," the Auckland-based Morrison said.

Last month, more than 500 Christchurch Casino staff were asked to take redundancy, use annual leave or take leave without pay until further notice.

Morrison also outlined his big real estate expansion plans to a Sydney conference where he described China and Thailand as key markets.

His presentation, posted on NZX, was to the 12th annual Macquarie Australia Conference which he said about 700 institutional investors attended.

He showed images of:

Plans to revamp Federal St between the four-star SkyCity Hotel and five-star SkyCity Grand.

A street view of the new national convention centre at 101 Hobson St complete with flyover air bridge.

Expanded VIP facilities on levels eight and nine of the SkyCity Hotel showing the new Pacific room for local table players, to be finished in August.

Villas and gaming salons on top of the SkyCity Hotel where the swimming pool has been removed from the rooftop area, to be finished next month.

SkyCity wants to have both hotel revamps finished ready for the Rugby World Cup.

Work at Darwin and plans for Adelaide were progressing, he said. Morrison is also confident of winning the Government tender to build New Zealand's first international convention and exhibition centre on an Auckland site opposite SkyCity.

"We still think we have a very compelling proposition." He hoped something would be announced in the "next two or three months".

Marcus Curley of Goldman Sachs & Partners NZ Investment Research retained his "buy" recommendation on SkyCity, and predicted it would make about $130 million net after-tax profit in the year to next month, rising to $159.9 million in 2012.

In a document headlined Gambling Becoming Affordable Again?, Curley noted how data showed electronic gaming machines net revenue for New Zealand pubs and clubs increased by 2.6 per cent to $205 million in the March quarter.

Yesterday, SkyCity shares closed up 5c at $3.73, showing a market capitalisation of $2.15 billion.