SkyCity Entertainment Group has released its financial results for the twelve months to the end of June showing a 13.1% improvement year-on-year in net profit after tax to $145.7 million while its total revenues grew by 7.6% to $1.1 billion.
The Auckland-based firm is responsible for four casinos in New Zealand alongside two in Australia and posted an 8.2% rise year-on-year in annual earnings before interest, tax, depreciation and amortization to $330.1 million while its normalised net profit after tax for the period hit $152.7 million, which represented a boost of 13.9% on the previous year’s results.
John Mortensen, Interim Chief Executive Officer for SkyCity Entertainment Group, attributed the improved financial results to the performance of the firm’s SkyCity Auckland facility along with record activity from international high-rollers.
“This financial year has been a successful one for SkyCity Entertainment Group, following on from the momentum achieved during last financial year,” read a statement from Mortensen. “Strong financial results were achieved across most parts of the business and good progress was made on our major growth projects in Auckland and Adelaide. Similarly, we have continued to actively support our communities during the period and further invest in our corporate social responsibility activities, reflecting our commitment to being a good corporate citizen, while operating a sustainable and successful business model.”
SkyCity Entertainment Group declared that its casinos in New Zealand are moreover benefiting from record tourism and migration numbers while its SkyCity Auckland complex received a boost thanks to new gaming concessions, which included the introduction of additional gaming machines and cashless payment technology.
“The continued momentum at SkyCity Auckland reflects the significant investment in the property over the past few years, initiatives to drive incremental visitation through customer segmentation and positive external factors that remain supportive of the business,” read the statement from Mortensen. “The property is also benefiting from the new gaming concessions that were activated in November of 2015. As a result, SkyCity Auckland has now delivered ten consecutive quarters of earnings before interest, tax, depreciation and amortization growth on previous corresponding periods; an excellent achievement.”
Excluding international business, SkyCity Entertainment Group revealed that its SkyCity Auckland venue, which accounted for 85% of its most recent earnings before interest and tax, increased twelve-month earnings before interest and tax by 8.2% year-on-year to $195.2 million. However, the operator’s remaining New Zealand businesses, which encompass the SkyCity Queenstown, SkyCity Wharf Casino and SkyCity Hamilton casinos, saw annual earnings before interest and tax rise by only 1% to $16.2 million.
In Australia, SkyCity Entertainment Group explained that annual earnings from its SkyCity Adelaide casino lifted 36% year-on-year to $9.4 million thanks to better cost control margins although its SkyCity Darwin development suffered a 16% decline to $22.5 million. It put this deterioration down to a reduction in the local area’s workforce as well as higher gaming tax rates and increased competition from pubs and clubs.
“While we are pleased with the improved performance at SkyCity Adelaide, challenges remain delivering local gaming growth in a soft market,” read the statement from Mortensen. “Growing our share of the local gaming machine market in South Australia is a key focus for [the 2017 fiscal year].”