Weekend Herald

SkyCity looks forward to rise in earnings

- Anne Gibson

SkyCity Entertainm­ent Group expects to increase operating earnings and net profit after stronger than expected recent trading, to the point where its full-year result could be up 33 per cent on last year’s.

The company, listed on the NZX and ASX, made normalised Ebitda last year of $200.7 million, but yesterday said it expects that to rise to $247m-$253m.

That would be a 26 per cent increase if it meets the top of that range.

Normalised net profit after tax last year was $66.3m, but it expects that to come in at $84m-$88m this year.

That would be as much as a 33 per cent rise on the June 30, 2020 result.

The company announced a strong performanc­e from its New Zealand gaming businesses, particular­ly from electronic machines, and consistent performanc­es from SkyCity Adelaide. The online casino SkyCity Malta was also cited for the improvemen­ts.

However, “due to ongoing uncertaint­y arising from the timing of the New Zealand Internatio­nal Convention Centre/Horizon Hotel reinstatem­ent and potential for other accounting adjustment­s required as part of FY21 results, SkyCity is unable to provide guidance for reported (statutory) results at this time,” it said.

Based on its earnings guidance, SkyCity expects to comfortabl­y meet its financial covenants for the June 30, 2021 testing period and pay a final dividend during September 2021, consistent with the revised dividend policy announced at the time of its 2021 first-half result.

The result will be out on August 25.

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