16 Feb 2010

Sky City profit rises by almost a third

1:10 pm on 16 February 2010

Sky City Entertainment's half-year profit has risen by almost a third, thanks to growth in its Australian casino business and group-wide cost cutting.

The listed casino operator, which has businesses in New Zealand and Australia, made a net profit of $71 million in the six months to the end of December.

That compares with a $54.8 million profit in the same period the year before.

Sky City says its earnings in New Zealand were flat at $115 million, but it's Australian business was up 7% to more than $48 million.

Revenues from its international business, which focuses on VIP and high wealth clients, increased nearly six-fold, after a higher-than-expected win rate.

Sky City expects its full year after tax profit to be between $10 million and $15 million higher than last year's $115.3 million.

The top-10 company declared a dividend of 8 cents per share against 9 cents a year earlier. Sky City shares were up 9 cents to $3.22, shortly after midday on Tuesday.