Morrison master of the numbers game

Nigel Morrison has restored direction to Auckland's wayward SkyCity. Photo / Dean Purcell

An Australian with a reputation for working hard and playing hard, SkyCity boss Nigel Morrison is steeped in the world of casinos and knows how to play the numbers game that underpins the gaming industry.

Morrison has won credit from the market for restoring direction to a company after a hiatus following the departure of Evan Davies, when it was run by board member and temporary chief executive Elmar Toime.

Investors welcomed his arrival in March 2008, bringing his gaming expertise to a company he says had "lost its way".

Morrison also hired casino expertise from overseas to bolster the gaming side of the business.

In 2008 Morrison said: "Running casinos is not like rocket science. But they do have some peculiarities - the business needs to be structured to realise the potential."

On a personal level, Morrison remains something of a mystery to the market.

Before SkyCity, he had spent just a year as chief financial officer with the Hong Kong listed Galaxy Entertainment Group. But he has a long history in gaming.

He was formerly chief executive of the Federal Group, Australia's largest private casino and gaming company.

Before Federal, he was chief operating officer at Crown Ltd (operator of Melbourne's Crown Casino), where he played a key role in restructuring the business and increasing revenues to more than A$1 billion.

The reasons for his departure from the Hong Kong job after such a short period were never made clear, but the view in the industry was he did not fit easily with the culture of shareholders with strong Chinese family connections.

Two and a half years later, after he came to New Zealand, the market is restive again - one of the supposed benefits of having a "sin stock" is that it delivers good returns. Analysts grudgingly acknowledge the 14 per cent increase in dividends this year, but are less thrilled about SkyCity's low rolling share price.

The shares, which closed at $2.91 yesterday, hit highs of $5.50 in late 2008. Even in the wake of the global financial crisis last year they were trading above $3.50.

Revenue from VIP tables is down but perhaps more worrying is that revenue from the engine room of the casino - slot machines - was down 2.4 per cent.

Morrison says when he arrived, SkyCity was "drifting and had lost its way". There's no doubt his grand plans for central Auckland are raising eyebrows, but Morrison is not deterred.

He says SkyCity has been good for the central business district and the projects would be good for Auckland.

"The central business district needs investment - and where else is it coming from?" he said.

SkyCity marked the 13th birthday of its biggest footprint in the city, the SkyTower, this month. Morrison says the company is planning new entertainment facilities for the Rugby World Cup - with the SkyTower providing a giant signpost for visitors.