SkyCity lifts first-half profit

SkyCity Entertainment Group posted a 12 per cent lift in first-half profit on growth from its combined New Zealand properties, a recovery in the international business and stable performance in Australia. New Zealand’s only listed casino company said it remains on track to achieve “modest” full-year growth.

Normalised net profit rose to $93.5 million, or 13.9c per share, in the six months ended December 31, from $83.8m, or 12.7c, a year earlier.

Earnings before interest, tax, depreciation and amortisation rose 6.8 per cent to $180.6m, while revenue lifted 4 per cent to $554.7m.

The results “deliver growth on the prior year and are largely in-line with our expectations and previous market guidance. We continue to make progress on our current strategic initiatives and the significant developments underway in Auckland and Adelaide position the company for earnings growth and creation of shareholder value over the mediumterm,” said chief executive Graeme Stephens.

Key to the result was a recovery in the international business after a challenging prior year, SkyCity said. Turnover was up 9.4 per cent to $4.8 billion and normalised ebitda up 87 per cent to $14m.

It continues to target $10b in international business turnover for the full year.

SkyCity’s Auckland casino, which accounts for the bulk of its earnings, continues to benefit from New Zealand’s record tourism and migration, and additional gaming concessions that it won from the government in return for agreeing to build a convention centre for the city.