15 Aug 2012

SkyCity group profits rise

6:55 pm on 15 August 2012

SkyCity reported a profit of $138.5 million in the year to June and a rise in revenue of 8% to $951 million.

The profit is slightly lower than the figure SkyCity gave in May when it revised its forecast down to the low $140 millions.

The company owns or has interest in four of the country's six casinos and two in Australia and dominates the New Zealand casino industry because of a ban on new establishments.

Its flagship Auckland casino boosted revenues by 14%, with its international business almost doubling.

The company's Darwin property returned to growth in the second half, but SkyCity says economic conditions in Adelaide have been tough.

Revenue rose 5% in the first six weeks of the new financial year but the second quarter will be more challenging without a Rugby World Cup to boost its coffers.

In the next year, it aims to conclude drawn-out negotiations with the Government over contentious plans to build a $350 million convention centre in Auckland.

In return, it wants its operating licence extended, more gambling machines and some rule changes.

SkyCity chief executive Nigel Morrison says the result has been mixed, but the Rugby World Cup and high spending Asians boosted returns at its flagship Auckland casino.

Mr Morrison is optimistic its talks with the Government to build a national convention centre plan will be successful.

SkyCity announced a final dividend of 8 cents per share, unchanged from a year ago.