Skycity net profit up 11.4 percent in first half of FY19

SKYCITY Entertainment Group has reported strong financial results, with normalized net profit after tax up 11.4 percent for the first half of the year, driven by a solid performance in its Auckland operations and significantly improved turnover in its International Business.

Normalized Net Profit After Tax (NPAT) was up 11.4 percent to NZ$97 million (US$64.3 million) and normalized Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) was up 10.5 percent to NZ$189.1million, with 73 percent of this being earned from the company’s Auckland operations.

The company reported a lower win rate (0.98 percent compared to the theoretical win rate of 1.35 percent) in its International Business which with certain other adjustments meant reported NPAT was down 11.4 percent and reported EBITDA was down 8.2 percent

Chief Executive Graeme Stephens said “We’ve had a really positive first half of this financial year, aided by some strong gains in International Business turnover and a good result from our flagship Auckland property, particularly on the gaming floor.  

There had also been positive growth in EBITDA “across all our other New Zealand sites – and from Adelaide on a like-for-like basis,” which he said set up the company to deliver a good full year performance and to press ahead with a range of strategic initiatives and projects.

SKYCITY is paying a full imputed 10 cents a share dividend for the half year (the same as the previous year) and expects a 5 percent increase in EBITDA for the full year.

The company says its New Zealand operations will be carbon neutral this year, with its Australian business reaching that goal next year. It will also set up a Green Fund to offset emissions and fund staff-led carbon reduction initiatives.