Skycity casinos on roll, but Queenstown misses cup boost
Skycity Queenstown slightly increased earnings despite a tough economic environment, the entertainment group’s lawyer said yesterday.
The hotel and casino group attributed overall record half-year profits of $78.8 million to the Rugby World Cup and gaming at flagship casinos in Auckland and Hamilton. The entertainment group’s World Cup revenue was estimated as $11.5m.
Skycity chief executive Nigel Morrison said the financial year started well for the group, with an 8.8 per cent revenue increase during the first four months.
However, there was no influx of spenders into Queenstown during the World Cup, while gaming in Christchurch was hit by a downturn after the region’s earth- quakes, the group’s general counsel, Peter Tracey, said yesterday.
Skycity Queenstown earnings increased 25 per cent but Christchurch casino earnings fell 24 per cent, equivalent to $800,000 before deductions.
Queenstown casino, 40 per cent owned by tourism operator Skyline Enterprises, generated $500,000 before interest, tax and other deductions.
This was up 25 per cent on the previous half-year earnings before tax of $400,000.
Mr Tracey said Queenstown earnings were relatively flat and there was no real uplift from the World Cup.
‘‘It’s quite a good result in a fairly challenging environment. Christchurch being the gateway, [the earthquakes] impacted on the tourist numbers.
‘‘If there’s a discernible trend, it’s business as usual.’’
More Asian visitors were gaming in Skycity Queenstown, which has 12 tables and 86 machines, especially during the Chinese New Year, he said.
Skycity group owns or has major shares in five of New Zealand’s six casinos, while Queenstown-based Skyline Enterprises has significant stakes in the Queenstown and Christchurch ventures.
Last year, Mr Morrison said high rollers snubbed Queenstown because of house-limit constraints, but Skyline Enterprises shareholder and casino director Barry Thomas said the resort was not comparable to larger gaming centres such as Auckland.
The smaller of the two casinos in Queenstown, Lasseters Wharf Casino, reported a loss of $1.1m in the last full-year round of financial statements in June.