New Zealand-headquartered gambling operator SKYCITY Entertainment Group announced its financial results for the first four months of the current fiscal year and revealed that it is planning to commence construction works on Adelaide Casino in the first half of 2016.
EBITDA for the four months ended October 31 amounted to NZ$107.2 million, up 14% from the NZ$94.1 million posted for the same period a year ago. Revenue increased 10% year-on-year to reach the amount of NZ$363.6 million.
SKYCITY is New Zealand’s only listed gambling operator. The company is based in Auckland and manages two gaming facilities in Australia and four in New Zealand. SKYCITY’s Auckland operations generated earnings of NZ$89.6 million, up 14% year-on-year. Revenue increased 6.2%.
The operator’s Adelaide Casino improved its performance significantly, after it was called an underperformer in 2014. The gambling venue’s earnings for the four months ended October 31, 2015 amounted to A$14.7 million, up 77% as compared to the same period a year ago. Revenue rose 24% year-on-year. Turnover from high roller players, particularly ones form the Asia-Pacific region, increased 51%.
Commenting on the reported figures, Nigel Morrison, Chief Executive Officer of SKYCITY, said that the operator is right on track to deliver “pleasing” half-year financial results. The executive also noted that they have advanced significantly in “addressing the cost structure” of Adelaide Casino.
The company also revealed that it will break ground on the planned Adelaide expansion sometime in the first half of 2016. SKYCITY is to add a new hotel, suites, and villas to the already existing amenities. The new additions aim at attracting more well-to-do customers to the hotel and casino complex. The operator refers to that particular group of customers as its international business. SKYCITY expects to spend more than A$300 million on the planned expansion.
Mr. Morrison said that the company is currently putting the finishing touches on the casino’s design and that plans have been submitted to the Adelaide Development Assessment Commissioner.
As for SKYCITY’s Darwin casino in Australia’s Northern Territory, the venue generated earnings of A$16.6 million, up 7.8% as compared to the four months ended October 31, 2014. Revenue grew 3.3%.
Earnings at the Hamilton-based casino in New Zealand increased 28% to NZ$7.8 million. Revenue amounted to NZ$18.1 million, up 11% year-on-year. The casinos at Queenstown posted earnings of NZ$1.9 million, up from the NZ$200,000 posted for the same four-month period of 2014. Revenue increased to NZ$10.7 million from NZ$4.6 million. The company attributed the significant growth to the increased number of international customers.
