SkyCity sees international growth, but clouds gather over Auckland project

  SkyCity’s major casinos are in Auckland and Adelaide; Auckland is the star performer reporting increased EBITDA of $124.3 million ($91.5 million) for the half year to the end of 2014. The A$50 million ($38 million) refurbishment of its Adelaide casino is now over ending a lengthy period of disruption which has led to lower earnings. Smaller operations in Darwin (a small increase in EBITDA), Hamilton (now profitable again), and its two casinos in Queenstown (low but positive earnings) have benefited from tight cost controls and stronger international business. SkyCity’s Chief Executive Nigel Morrison told an analysts’ briefing that it was achieving higher margins on VIP customers than rivals because it relied less on junket operators. “We focus on developing direct relations with clients. We are less reliant on junket operators than other casinos. We are pleased with the margins in the business. Our EBITDA margin (in this segment of the...

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