KEY POINTS:
SkyCity Entertainment says it is close to appointing a new chief executive, but expects the new casino boss will be able to recover only half of this year's 20 per cent profit drop.
The company yesterday reported an 18.6 per cent fall in full-year profit to $98.4 million,
confirming earlier market guidance.
The casino operator - which also confirmed it would go ahead with asset sales - blamed disruption from refurbishment in its Auckland casino and a run of lacklustre movies at its cinema chain for part of the problems.
And it is also expecting to have better luck with its gambling business aimed at high rollers that ended the year $8 million below target.
The troubled casino company said yesterday it was close to appointing a CEO, who would be given the task of increasing profits 10 to 12 per cent in the current year.
SkyCity shares rose with other shares during early trading and at one point were up 14c at $4.34. But the shares ended down 4c at $4.16, with one analyst saying that results were not as good as originally appeared.
David Boyce of ASB Securities said the net profits included a one-off tax benefit that other companies had reported as an extraordinary item.
And the 10 to 12 per cent profit guidance represented half that figure when taking into account the fall in profits from 2006-2007.
Boyce said the results appeared to be based on resuming profits from SkyCity's international rebate business - the high rollers - which had fallen in 2006.
SkyCity acting chief executive Elmar Toime confirmed plans to push ahead with the company's signalled sale of its Adelaide casino and its SkyCity Cinemas division.
But he said it would not sell its 40.5 per cent stake in the Christchurch casino, which the company said was a strategic investment.
Christchurch was providing satisfactory returns, Toime said.
Share values have been drifting downward amid government inquiries into the casino industry and the departure of founding CEO Evan Davies.
The company will pay a dividend of 22.3c a share, compared with 28.5c last year.
SKYCITY
12 months to June 30
Revenue
2007 - $816.1m
2006 - $764.6m
Op profit
2007 - $297.2m
2006 - $301.2m
Net profit
2007 - $98.4m
2006 - $120.1m