SkyCity looks forward to rise in earnings
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.