At a recent trading update, the company which owns casino operations in New Zealand and Australia indicated that group revenue was slightly up in the first five months of the 2011 financial year compared with the previous corresponding period.
The key area of performance was the 4.5% growth in gaming-machine revenue at Auckland in the three months ending November. There had been consistent growth across all three months, he said.
"This has also been a tough time for many retail-focused businesses and we suspect a continued weak pub and club market."
Things had improved for Sky City since comments in October when first-quarter Auckland gaming-machine revenue was down 2.7% on the pcp, but ahead of the average quarterly growth in the second half of 2010.
The international business continued to track very well, with Auckland revenue up 10% and Darwin up 25%, Mr Young said.
The weak area remained Auckland local premium table play, although there had been a modest improvement recently as the economy slowly improved.
Non-gaming activity - hotels, the Sky Tower and convention centre - was tracking well ahead of the pcp.
"With very high occupancy at its hotels, Sky City is now focused on pushing up room rates."
The Adelaide operation continued to be relatively flat and Darwin continued to be hampered by the smoking bans.
The company was expected to announce soon a new general manager - an experienced Australian casino operator - for the whole Auckland property, Mr Young said.
In Auckland, work was about to start on the new international business high-roller suites and salons and gaming areas on level five of the old hotel.
Sky City was advancing plans to expand the gaming up into the new vacant space that would be created on level three of the casino.
This would enable an improved layout on the main floor and the creation of more sports-focused zones on level 3 - poker, large sports bar and TAB, he said.
Plans for stage one of the Federal St precinct between the casino and the new Grand Hotel were also advancing.
Sky City would turn its existing convention facilities into Auckland's largest bar for the Rugby World Cup.
"There was no comment about any change to existing earnings guidance and we do not expect to make any material changes to forecasts. We remain with a positive view and a buy recommendation.
"We are very encouraged that the key core gaming machine operation is coming back to life and the large amounts of effort management have put into turning this business around," Mr Young said.
