The company will pay a final dividend of 10.5 cents per share on 16 September 2016.
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John Mortensen, Interim Chief Executive Officer for SkyCity Entertainment Group, attributed the improved financial results to the performance of the firm’s SkyCity Auckland facility along with record activity from worldwide high-rollers.
Global business jumped to a record result, with stable operating margins pushing up earnings.
SkyCity says its improved profit is driven by growth in its Auckland casino and global high-rollers business. In fact, all its New Zealand sites delivered great results during the year with solid growth across both gaming machines and tables. “The property is also benefiting from the new gaming concessions that were activated in November of 2015”.
Excluding worldwide business, SkyCity Entertainment Group revealed that its SkyCity Auckland venue, which accounted for 85% of its most recent earnings before interest and tax, increased twelve-month earnings before interest and tax by 8.2% year-on-year to $195.2 million.
In Australia, the Adelaide property managed to post a 19% earnings gain despite a 1% revenue decline.
SkyCity breaks out its so-called International Business (IB) aka Asian high rollers as separate figures from its individual property results, and last year’s IB was a record-breaker.
Its International Business segment was another bright spot.
“The second half result [was] below expectations, primarily influenced by quieter trading in May and June”, it said in a statement.
In its New Zealand business, SkyCity expects macroeconomic, tourism and demographic drivers to remain supportive, and that Auckland will continue to benefit from new gaming concessions and recent investment in facilities.
The strong performance of its New Zealand and International Business segments helped offset a disappointing spot of weakness at its Australian sites.
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Group revenue rose 9 percent to $1.1 billion, while the flagship Auckland casino’s revenue rose seven percent. Its shares fell 2.7 per cent to $5.
