Former managing director Evan Davies looks set to pocket at least $1.48 million from part of his share options package. Photo / Brett Phibbs
SkyCity has played up its plans to improve returns from its high-roller customers, but at the other end of the table the casino company has halved the minimum bet at its Auckland blackjack operation to just $2.50.
Before the initiative the minimum bet on a table at the
casino had been $5.
The $2.50 minimum bet table for Friday and Saturday nights was introduced in May, around the time the company unveiled it was cutting $33 million from costs.
Then-managing director Evan Davies detailed plans to improve results by focusing on VIP clients. He said SkyCity was confident it was on the road to recovery
But the road so far has been rocky. Davies left suddenly in June and has been followed by other senior executives. He has been replaced by director Elmar Toime while a full-time replacement is sought.
When Davies left, the company said it was comfortable with market expectations it would deliver profit of $98 million for the year to June 30, 2007, but this would depend on the results for the final six weeks.
As Toime and chairman Rob McGeoch prepare for the release of the annual results next Monday, they will be aware of market scepticism.
Davies, who exited just four days before the end of the financial year, may be glad he is not the one showing the company's hand.
One investor who asked to not be named questioned whether the cost-cutting plan would resolve issues. He said the company's success came down to the experience offered at the Auckland casino, and cutting costs was not going to do anything about that.
Davies is understood to have walked away with a $1.7 million payout. And based on the company's share value on Friday ($4.62), he looks set to pocket at least $1.48 million from part of his share options package which has to be exercised by September 10, according to the company.
The expiring options allocated in 2002 allow Davies to buy shares in SkyCity at $4. Davies had been allocated 2.388 million of these options.
Davies' company Welch Securities also held 462,665 shares worth about $2.1 million when he left the company.
