Sky City revenue climbs 4.7%

Sky City Entertainment Group, New Zealand’s biggest casino company, said first-quarter revenue grew 4.7% on improved sales at its Auckland complex and in Australia, putting it on track for ‘double-digit’ earnings growth in 2010.

The shares climbed 2.7% to $3.49, bringing their gain in the past six months to 23%. Chief executive Nigel Morrison said revenue from Auckland casino edged up 1.1% and sales from its Australian operations in Darwin and Adelaide rose 7%.

Sky City will “monitor and manage closely” the impacts of a smoking ban to be imposed on Darwin from January 2, which is forecast to hurt gaming revenue at the site by about 15% in the second half, Morrison said.

“Continued challenging economic conditions in New Zealand” meant Auckland Casino managed only marginal sales growth while revenue growth stalled from gaming machines.

Based on the first-quarter results, “the group’s previously stated objective of double digit earnings growth in FY10, while recognising that this would be challenging in the current economic environment, was still on target for the 2010 financial year,” Morrison said. 

Businesswire.co.nz

Comments from our readers

No comments yet

Add your comment:

Your name:
Your email:	Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Anti-spam verification:

Type the text you see in the image into the field below. You are asked to do this in order to verify that this enquiry is not being performed by an automated process.

Related News:

SkyCity's Queenstown growth ambitions face test with convention centre decision tomorrow
SkyCity buys TVNZ land for $10.6 mln, broadcaster to put cash into upgrading main building
SkyCity shares fall as results show struggle to squeeze growth out of Auckland
SkyCity FY profit falls 8 percent on flat Auckland result, one-off 2012 benefits
FMA recorded Allen's role in SkyCity talks as potential conflict of interest
South Australia approves ‘game changing’ SkyCity casino licence, allowing A$300M investment
Government roped in FMA chair Simon Allen to help close SkyCity deal, papers show
SkyCity cleared to buy Queenstown's Wharf Casino
NZ govt, SkyCity take another 5 days on $402M convention deal
NZ government, SkyCity extend deadline for deal on $402M convention centre