11 Jun 2021

SkyCity forecasts recovery in full-year profit

12:06 pm on 11 June 2021

Casino operator SkyCity is forecasting a recovery in its full-year profit, as recent trading has exceeded expectations.

Sky City logo

SkyCity will release its full-year results in August. Photo: RNZ / Claire Eastham-Farrelly

The company expects its normalised net profit to be between $84 million and $88m for the year ending June, which is about a 30 percent increase on last year's result which was badly affected by the pandemic.

However, its guidance for the current financial year is still down about 50 percent on the casino company's $173m normalised profit in 2019.

It expected pre-tax earnings of between $243m and $253, compared with about $200m a year ago.

SkyCity said it was now in a position to provide the market with a detailed forecast after recording a strong performance in its electronic gaming machines in New Zealand, as well as steady trading in both its Australian and online casinos.

"SkyCity's tourism-related businesses in New Zealand and South Australia continue to be impacted by ongoing international border closures (excluding the trans-Tasman border which re-opened on 19 April 2021), but are benefitting from positive domestic tourism, particularly on weekend and holiday peaks."

It said based on its forecast which is subject to no further lockdowns, it expects to meet its debt obligations for the current year and would pay a final dividend.

The company said it had only provided numbers on a normalised basis, rather than in statutory terms, because of ongoing uncertainty related to reinstatement of the New Zealand International Convention Centre and other accounting adjustments.

SkyCity will release its full-year results in August.

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