SkyCity's Australian businesses in Darwin and Adelaide continue to struggle.
SkyCity's Australian businesses in Darwin and Adelaide continue to struggle.
SkyCity Entertainment Group posted a 4 per cent decline in third-quarter sales as its Australian businesses in Darwin and Adelaide continued to struggle while its flagship Auckland casino dealt with flat gaming revenue and the loss of its Air New Zealand Koru catering contract.
Group revenue fell to $258.1 millionin the three months ended March 31 from $268.9m a year earlier, the Auckland-based company said in a statement. SkyCity's Auckland casino, the company's largest, reported a 1.5 per cent dip in revenue excluding international business to $141.8m, of which $2.5m to $3m came from the loss of the Koru catering contract. On a like-for-like basis, SkyCity said Auckland's sales were up 1.2 per cent with modest growth in its non-gaming revenue and flat gaming revenue.
Sales at the Adelaide casino fell 1.8 per cent to A$36m and SkyCity said the property will post a weaker second half as it deals with flat revenue and growing pressure on its margins, while its Darwin operation reported a 5 per cent fall in revenue to A$23.2m in the face of tough trading conditions and competitive pressures.
SkyCity's revenue from its international business for high-rollers rose 5.1 per cent to $38.2m on a normalised basis, which adjusted for a theoretical win rate of 1.35 per cent against an actual win rate of 1.27 per cent, due to strong activity through the Chinese new year holiday. In actual terms, revenue from the international business was down 2.3 per cent.
Its Hamilton casino increased sales 5.7 per cent to $14.3m and its Queenstown businesses posted a 12 per cent drop in revenue to $2.8m.
In February, the company posted an 18 percent gain in first-half profit to $83.8m as stronger trading in Auckland offset the weaker Australian businesses and SkyCity today said it expected its biggest unit to achieve "modest earnings growth" in the second half.
SkyCity shares last traded at $4.49 and have gained 14 per cent so far this year.
