SkyCity falls 3.7pc after full-year results
Mainfreight best performer, A2 Milk hits record high amid mixed day of trading
New Zealand shares were mixed, with SkyCity Entertainment Group dropping to a five-month low, while Mainfreight and A2 Milk Co gained. The S&P/NZX 50 Index rose 16.92 points, or 0.2 per cent, to 7,799.64. Within the index, 24 stocks fell, 13 rose and 13 were unchanged. Turnover was $186.8 million.
shares fell 3.7 per cent to $3.95 after posting its full-year results.
The Auckland-based casino and hotel group yesterday reported a 1.3 per cent increase in normalised net profit to $154.6m in the year ended June 30, while normalised revenue dropped 4.9 per cent to $1.03 billion. It didn’t give specific numbers for the current financial year but said it expected group earnings before interest, tax, depreciation and amortisation to “grow modestly”.
“It has disappointed on this year’s
SkyCity
earnings compared to forecasts, and the outlook is for modest growth which is a lot below what people were going for next year — that’s the key disappointment,” said Craig Stent, head of equities at Harbour Asset Management.
“Clearly the period they’ve had in Auckland over the last while should have been positive for them with the Lions tour and the Masters Games, so it’s the next year that’s a pretty high hurdle for them to lap the preceding period. It’s pretty well held by Australian investors as well, that may be where some of the marginal activity is coming from.”
was the best performer, up 1.8 per cent to $24.95, while
gained 1.6 per
Mainfreight Ryman Healthcare
cent to $9.34.
rose 1.5 per cent to $4.84, a record high for a stock which has soared 124 per cent this year. The
A2 Milk
recent rally came after several brokers upgraded their expectations for the stock ahead of its results next week, Stent said: “Clearly they’ve got earnings forecasts out there, and expectations are they might still beat those, and more importantly is what’s the outlook for next year — if they give any guidance at all, that’s what people will be looking for.”
TradeMe Group
fell 2 per cent to $4.80, continuing Tuesday’s selling after broker downgrades amid concern its business will be eroded by Amazon’s expansion into Australia and plans for New Zealand. Outside the benchmark index,
gained 0.3 per cent to $1.66. Excluding the impact of internalising a management contract, Property For Industry’s firsthalf profit rose 12 per cent to $25.2m. Operating revenue lifted 1.4 per cent to $35.7m while operating expenses gained 4.2 per cent to $13.5m.
The industrial property investor posted a $5.6m net loss in the first half of its financial year, from a profit of $22.5m a year earlier, including $42.9m in termination costs and a $6m gain in the value of its properties.
dropped 5.7 per cent to 3.3c. The Dunedin company’s chief financial officer, Tim Mepham, has stepped down as the probiotics maker edges closer to turning a profit. He had been performing the role four days a week. It is seeking a full-time replacement.
Property For Industry Blis Technologies