Skyline sees lift in trade

Skyline Enterprises is confident Covid-19 is “receding into the reviewview mirror” and is expecting a strong summer for its New Zealand businesses.

“Whilst the operating environment is challenging with high inflation, constrained supply, and a tight employment market, the overall performance picture is positive,” said outgoing chair Jan Hunt.

The company said its unaudited underlying earnings before interest and tax (Ebit) were $26 million in the six months to September 30, 44 per cent ahead of last year. The positive trend meant it confirmed it will pay a pre-Christmas interim dividend of 20 cents a share, as indicated at the annual meeting. It will be paid on December 16 to all shareholders on the register at December 5 at 5pm.

Shares of Skyline recently traded at $18.00, valuing the company at $614m.

Hunt said the Skyline Queenstown business continues to benefit from the increase in international visitors, particularly from Australia over the winter months. This has carried through into the recent Australian and NZ school holidays, and all lead indicators point to strong summer trading.

It said its new luge tracks, which opened in May at Skyline Rotorua, were popular with the mainly domestic market over the recent NZ school holidays.