Casino operator SkyCity Entertainment reports record annual profit

Casino operator SkyCity Entertainment reports record annual profit

SkyCity Entertainment Group posted information about its financial performance during the previous financial year ended June 30.

New Zealand.- SkyCity Entertainment Group released its financial performance report during the previous financial year ended June 30. The company saw a 13% jump in full-year profit. This considerable increase was attributed to the record activity from high rollers.

The net profit was US$145.7 million (€130.4 million), 22 percent or US$17 million more than the numbers reported a year ago. The revenue experienced an increase of 9.1% and reached US$1.1 billion (€980 million). SkyCity Entertainment operates four casinos in New Zealand and two casinos in Australia.

Regarding Australia casinos, the earnings of Adelaide casino alone jumped to US$9.4 million, (€8.4 million) 36 percent up year-on-year. Adelaide’s casino significant increase was credited to the improved cost control margins. On the other hand, SkyCity Darwin’s earnings saw a decline of 16 percent or US$22.5 million (€20.1 million). The reason for the decline was the intensified competition coming from the clubs and pubs located in the region and the increased tax rates.

SkyCity Entertainment’s casinos in New Zealand are thriving. The casinos enjoyed record activity from high roller players. In a long-term, the Auckland property is expected to continue to take advantage of the new gaming concessions and the considerable investments in facilities.

John Mortensen, the Interim Chief Executive, attributed Auckland property financial success to the positive internal factors as well as the considerable investments made in the previous years. The Auckland’s unit EBIT reached US$195.2 million (€174.7 million). The EBIT at the New Zealand properties was estimated at US$16.2 million (€14.5million).

In terms of international business, SkyCity’s EBIT was boosted to US $37.3 million (€122.88 million), 25 percent up year-on-year. The great boost was credited to the new Adelaide gaming salon, the gaming salons in Auckland and their popularity among VIP Asian players.