SKYCITY Entertainment Group normalized revenue up 10.2 percent in 2H16

New Zealand-listed SKYCITY Entertainment Group has reported normalized revenue and earnings for the group up 10.2 percent to NZ$562 million (US$382.5 million) for the six months ended Dec. 31, 2015, according to an interim report.

The New Zealand based casino operator said normalized EBITDA was up 15.4 percent to NZ$178.2 million and normalized NPAT was up 28.2 percent to NZ$85.4 million.

Nigel Morrison, SKYCITY’s chief executive and managing director said the group’s strong performance has continued in the first half of the 2016 fiscal year, and this momentum has continued into the second half. Morisson said there was “strong growth across our New Zealand properties and International Business,” including “EBITDA growth in Darwin despite more challenging local markets in Australia.”

The group also reported significantly lower fundings costs due to lower interest rates, lower average debt and capitalization of interest on projects which are now proceeding.

SKYCITY’s Auckland casino saw normalized revenue up 7.4 percent to NZ$324.9 million.

SKYCITY Hamilton’s revenue was also up, seeing 9.9 percent growth to NZ$27.7 million, citing “strong macro-economic factors influencing Auckland.”

The group’s combined Queenstown operations recorded huge growth in the period, with normalized revenue up 107.6 percent to NZ$13.7 million, “underpinned by significant international business and local gaming activity focused on cost control.”

Finally the group’s Adelaide operations reported revenue up 18.7 percent to A$103.6 million whilst its Darwin operations reported revenue down 6.9 percent.

SKYCITY has announced an interim dividend of 10.5 cents per share, reflecting significant earnings per share growth over the period.