SkyCity Entertainment Group posted information about its financial performance during the previous financial year ended June 30 and reported a 13% jump in full-year profit. The considerable increase was attributed to the record activity from high rollers.
The net profit was $145.7 million, which is 22% or $17 million more than the numbers reported a year ago. The revenue saw an increase of 9.1% and reached $1.1 billion.
SkyCity Entertainment manages two casinos on the territory of Australia. It is also in charge of four gambling venues, based in New Zealand.
As for the Australia-based properties, the earnings of Adelaide casino jumped to $9.4 million, 36% up YOY. The significant increase was credited to the improved cost control margins.
The earnings of SkyCity Darwin, however, saw a decline of 16% or $22.5 million. The reason for the decrease was the intensified competition coming from the clubs and pubs located in the region, as well as the increased tax rates. Yet, SkyCity officials remained confident that the decrease is temporary and the casino, that is strategically located close to Asia, will make up for the current loss.
On the other hand, company’s casinos in New Zealand are thriving. They are benefitting from the flourishing tourism and the addition of new gaming machines in the Auckland complex as well as the new features related to the cashless payment methods. In addition, the casinos enjoyed record activity from high roller players. In a long-term, the Auckland property is expected to continue to take advantage of the new gaming concessions and the considerable investments in facilities.
John Mortensen, the Interim Chief Executive, commented on the Auckland property financial performance and attributed the success to the positive internal factors as well as the considerable investments made in the previous years.The Auckland’s unit EBIT reached $195.2 million. The EBIT at the New Zealand properties was estimated at $16.2 million.
As far as the international business of SkyCity is concerned, the EBIT was boosted to $37.3 million, 25% up YOY. The boost was attributed to the new Adelaide gaming salon, the gaming salons in Auckland and their popularity among VIP Asian players.
SkyCity representatives said that the company is to continue investing in the business with the aim of ensuring its further growth on a global scale and boosting shareholders’ returns.
