Skyline to pay dividend of 20c
DESPITE a $21 million drop in profit, Skyline Enterprises Ltd chief executive Geoff McDonald says there is growing evidence to support a level of ‘‘cautious optimism’’ looking ahead, with the first dividend payment in three years coming before Christmas.
The company outlined its financial results to shareholders at its annual meeting in Queenstown on Saturday, reporting a net profit after tax of $35.7 million over the 2022 financial year, compared to $56.7 million for the previous year.
That is slightly up on the preliminary profit before tax, announced in June, which was $34.9 million.
Skyline chairwoman Jan Hunt, who will retire from her role at the end of this year, said the board deemed the payment of the traditional yearend dividend ‘‘inappropriate’’ at the time the financial year concluded, but given the positive trend in travel and visitation, it had confirmed a 20c dividend payable within the next three months.
While the operating environment continued to be dominated by the impact of Covid, the board and management were encouraged by the 2022 result and the strength and resilience within New Zealand and in the company’s international operations.
Despite border closures and restrictions, lockdowns and constantly changing operating environments, which ‘‘depressed overall business performance’’, Skyline was proactive in minimising impacts by maintaining ‘‘agile and flexible operating models’’, tight cost control and careful oversight of capital works projects.
‘‘As international travel gradually returns, we are confident that our response will position Skyline well to face further head winds from higher inflation, constrained supply and a tighter employment market.’’
Mr McDonald said Auckland’s lockdown in the latter half of the financial year, coupled with the absence of international visitors, had a negative impact on all New Zealand operations, most acutely felt in Queenstown.
Careful cost management through the later part of the year for Skyline Rotorua and the Christchurch Casino contributed to a ‘‘respectable’’ yearend result for both businesses.
Positive results were also delivered across international businesses, particularly in Singapore, where restrictions were eased earlier, and Canada, where they were largely removed.
One of the highlights of the year was opening the newest and largest Skyline Luge site in
Busan, South Korea, last July.
Looking to the future, work was still progressing on the Skyline Queenstown redevelopment and future international developments in Kuala Lumpur, Malaysia and Swansea, in the United Kingdom.
Peter Treacy was elected to the board, to become chairman after Ms Hunt steps down, while Grant Hensman and Donald Jackson were reelected.
Meanwhile, Christchurch Casino was establishing an offshore subsidiary, Christchurchcasino.com Ltd, to partner with a licensed international gaming company and launch an online casino.
Christchurch Casino chairman Bruce Robertson said it was a largely ‘‘defensive’’ initiative due to the growth in online casinos, at the expense of landbased casinos such as CCL.
Like other online casinos, CCL’s would be run out of Malta and involve robust responsible gambling safeguards.
Online casinos were currently legally prohibited from being established or promoted in New Zealand, but Mr Robertson hoped in due course, with a ‘‘wellregulated legislative framework’’ and regulatory oversight, that could change.
In addition, notwithstanding the offshore location of the online casino, Christchurchcasino.com Limited will pay GST on any gambling by NZ residents, as well as making further contributions to Christchurch Casino’s charitable trust, Mr Robertson said.