SkyCity warned of convention centre delay

2:06 pm on 19 October 2018

The completion of SkyCity Group's international convention centre in Auckland may be pushed back further.

Construction site for the SkyCity Convention Centre in Auckland.

Construction on the convention centre began in 2016. Photo: RNZ / Claire Eastham-Farrelly

SkyCity chief executive Graeme Stephens told the company's annual shareholder meeting that Fletcher Building has warned it may take longer than its revised finish date of late next year to complete the centre.

"This does remain a challenging project and we continue to deal with issues as they arise," he said.

The project is one of the largest risks for SkyCity and any further delays may hit its earnings. It has been forecasting that it will host the first conventions in 2020.

The convention centre project is one of the main causes of Fletchers near $1 billion losses over the past two years.

SkyCity gave no trading update at the meeting, but said it would do so next month.

It is in discussions with buyers for its Darwin casino business in Australia. No sale has so far been finalised.

Mr Stephens reaffirmed the company plans to build more hotels across New Zealand and is looking for partners to co-invest in such ventures.

He said the company was looking to restrain spending and look after its finances, which includes a review of asset ownership.

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