SkyCity shares rise after FY profit jump

New Zealand-based casino group SkyCity Entertainment has had a rise of more than eight per cent on the Aussie share market after its full-year net profit jumped by 62 per cent.

The group, which runs casinos in Adelaide, Auckland, Hamilton and Queenstown, reported statutory net profit after tax of $NZ235.4 million.

However management suggested normalised net profit, which fell 59.7 per cent to $NZ66.3 million, may be a more accurate representation. This figure does not include the one-off gain of $NZ337m SkyCity received from insurers after fire tore through the New Zealand International Convention Centre in October.

The fire forced the casino to close for three days.

The fire was one of two major blights on SkyCity during the 12 months to June 30, along with the coronavirus pandemic.

Management said the casinos in both countries were trading well prior to COVID-19 restrictions.

The Adelaide and Auckland venues posted the biggest slumps in full-year revenue, about 18 per cent.

There will be no final dividend. 

For this financial year, management said there will not be an interim dividend but it aims to pay a final dividend.

In an update on the current financial year, management said its domestic operations had recovered more quickly than expected.

Gaming activity at Adelaide and Auckland was just about at pre-virus levels, while gaming activity at Hamilton had exceeded those levels.

The opening of an expanded Adelaide venue is due later this year.

Shares were trading higher by 8.01 per cent to $2.49 at 1550 AEST.

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