New Zealand SkyCity Entertainment Group remains upbeat despite a dip in revenues and fire at its under construction convention centre. <\/p>\n\n\n\n\n\n\n\n
New Zealand.- New Zealand\u2019s SkyCity Entertainment Group has reported a drop in revenues but for 2Q19 but remains upbeat about its performance. <\/p>\n\n\n\n
The sale of its Auckland car park concession led to a 75.4% increase in revenue to NZ$721.7 million for the six months to 31 December 2019, with net profit after tax up by almost 300% to NZ$328 million.<\/p>\n\n\n\n
But the one-off boost from the sale hides a decline in revenues which dropped 7.9 percent on a normalized basis to NZ$490.9 million. <\/p>\n\n\n\n
This was attributed to the negative impact of the\u00a0devastating fire that broke out on the rooftop of the under-construction New Zealand International Convention Centre (NZICC) in October. <\/p>\n\n\n\n
The normalized results include a 10.7 percent fall in EBITDA to NZ$153.3 million and 16.4 percent decline in net profit after tax to NZ$75 million.<\/p>\n\n\n\n
While SkyCity Auckland suffered the consequences of October\u2019s fire, with the company estimating NZ$1.6 million in lost gross profit due to the property\u2019s temporary closure, SkyCity\u2019s other New Zealand properties in Hamilton and Queenstown both showed gains during the six-month period.<\/p>\n\n\n\n
Revenue at Hamilton grew 8.0 percent to NZ$34.1 million and at Queenstown by 8.1 percent to NZ$7.1 million, while SkyCity Adelaide in Australia fell slightly to AU$77.4 million.<\/p>\n\n\n\n
The company said it expects to recoup all costs from the NZICC fire through insurance. It added that the performance of its flagship Auckland casino had been encouraging pre-fire, with gaming revenue up 6 percent to 21 October 2019.<\/p>\n","protected":false},"excerpt":{"rendered":"
New Zealand SkyCity Entertainment Group remains upbeat despite a dip in revenues and fire at its under construction convention centre.<\/p>\n","protected":false},"author":2,"featured_media":3499,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"SkyCity Entertainment Group reported a substantial increase in statutory revenue and net profit for the six months ending December 31, 2019, primarily driven by the strategic divestment of its Auckland car park concession. However, normalized financial metrics, excluding this one-off event, indicated a decline in revenue, EBITDA, and net profit after tax, largely attributable to operational disruptions from the New Zealand International Convention Centre fire. Despite these challenges, regional properties in New Zealand demonstrated positive growth, and the company maintains an optimistic outlook, anticipating full insurance recovery for fire-related costs.","focusai_entities":"SkyCity Entertainment Group, New Zealand International Convention Centre","focusai_location":"New Zealand, Auckland, Hamilton, Queenstown, Australia, Adelaide","focusai_target_profile":"ceo_executive (0.95), regulator (0.75), compliance_legal (0.7), operator_casino (0.9), investor_analyst (1.0), supplier_vendor (0.7), journalist_researcher (0.9)","focusai_suggestions":[{"label":"Normalized Performance Outlook?","query":"Given the normalized revenue and EBITDA decline, what specific operational adjustments or market strategies are being implemented to restore growth trajectory independent of one-off asset sales?"},{"label":"Insurance Claim Resolution Timeline?","query":"What is the estimated timeline for the full insurance payout for the NZICC fire, and how will this impact SkyCity's capital expenditure and liquidity in the coming fiscal periods?"}],"footnotes":""},"categories":[160,16336,163],"tags":[2603,338,1137],"class_list":["post-3443","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-asia-pacific","category-australasia-news","category-finance-news","tag-auckland","tag-new-zealand","tag-skycity"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/3443","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=3443"}],"version-history":[{"count":6,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/3443\/revisions"}],"predecessor-version":[{"id":3519,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/3443\/revisions\/3519"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/3499"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=3443"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=3443"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=3443"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}