Skycity profits down 22.6%, expansion plans unveiled

    New Zealand operator SkyCity Entertainment Ltd’s posted a 22.6 percent  in drop in profits at NZ$123.2m for the financial year ending June 30 2014 in a filing. “While general economic conditions have been buoyant in Auckland, conditions in Hamilton, South Australia and, to a lesser extent, Darwin have been more challenging. Overall disappointing results for Hamilton,” the company told the stock exchange. 

    International Business turnover grew strongly in the second half with turnover exceeding NZ$6bn for the year, the company told the stock exchange. “Despite record turnover in international business of $6.5b, the actual win rate across the business for the year was 0.97 percent, thus reduced the win for the year from NZ$88.0m at theoretical to NZ$63.2m. Normalized EBITDA for FY14 declined by 4.3 percent from NZ$300.5m to NZ$287.6m. Of the NZ$12.9m drop NZ$9.9m represented exchange rate losses and a further A$4.1m related to Adelaide transformation and disruption.

    SkyCity also revealed approved concept designs for the New Zealand International Convention Centre (NZICC) and announced plans to build a new hotel  land it owns in the Nelson and Hobson Streets block in an expansion of the SKYCITY Entertainment precinct to include a pedestrian laneway of bars, restaurants and boutique shopping. The NZICC spreads over four levels and will contain a public atrium entrance, multiple day meeting rooms and a dedicated multi-use plenary theatre able to accommodate 3,000 people for convention and entertainment events. The exhibition floor will be the size of Eden Park’s rugby pitch. Design of the hotel and laneway is a collaboration between Warren and Mahoney and Moller Architects. 

    The hotel will be 5 star accommodation offering 300 beds, bringing the total number of beds available within the SKYCITY Entertainment Precinct to nearly 1000 and will be linked by an air bridge to the rest of the SKYCITY complex. “This is a very significant time for SKYCITY as it further invests in major infrastructure projects that will enhance the city of Auckland, benefit Aucklanders and visitors alike and continue to strengthen our business,” said CEO Mr Morrison. The company finished the round of announcements by naming Rob Hamilton to the position of CFO. Mr Hamilton has Bachelor degrees in Commerce (Finance, Accounting and Economics) and Science (Physics and Mathematics), is an NZX accredited adviser and is also on the board of the New Zealand Olympic Committee.