SkyCity sees smaller than expected tax impost from Darwin gaming review

Wednesday 29th July 2015

SkyCity Entertainment Group, the listed hotel and casino operator, will face a smaller than expected increase in operating costs after Australia's Northern Territory government completed its review of the state's gaming taxes.

The Auckland based company estimates a new 10 year community benefit levy will add an extra $1 million in operating costs to SkyCity, it said in a statement. The company had previously estimated the casino levy in the Northern Territory could cost it as much as $6 million a year.

The levy applies from July 1, and if there are any changes in the rate over the next decade, SkyCity will be able to offset any licence or regulatory fee against the gaming tax, it said.

In May, the company said its Darwin casino continued to experience challenging trading conditions. SkyCity's Northern Territory casino generated revenue of A$73.1 million in the six months ended Dec. 31 and earnings before interest, tax, depreciation and amortisation of A$21.6 million.

SkyCity's shares last traded at $4.19, and have gained 8 percent this year.

BusinessDesk.co.nz

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