The Green Party says Government subsidies are unnecessary
for SkyCity to build a convention centre. Photo from: NZ
Herald.
SkyCity Entertainment's record profits highlighted how
unnecessary it was for the Government to change legislation in
exchange for a new convention centre, Green Party MP Denise
Roche said yesterday. Ms Roche questioned why such a profitable
company was relying on a Government "hand-out".
"It's outrageous the Government is prepared to increase the
legal number of pokies and gambling tables just so a
corporate winner will build a place for people to have a
conference," Ms Roche said.
SkyCity said in its interim profit announcement yesterday
talks were continuing with the Government over the
construction of a National Convention Centre, which if
concluded would see the company invest $350 million in the
project.
In return, it wants an early renewal of its Auckland casino
licence beyond 2021, an increase in gaming and changes to
gaming regulations.
Discussions had been progressing proactively since the
National Government was returned in last year's elections, it
said.
The Rugby World Cup provided a one-time revenue boost of
$11.5 million and added $4.7 million to profit, the company
said, adding the effect "was less significant than expected".
SkyCity filed a reported profit of $78.8 million for the six
months ended December, 17.4% up on the previous corresponding
period.
Earnings per share (EPS) rose to 13.7c, up from 11.7c. The
interim dividend was 9c per share, up from 8c in the previous
period.
Forsyth Barr broker Peter Young said SkyCity had upgraded its
guidance to the high $140 millions for the full year, in line
with his forecast of $148 million.
Auckland gaming machines and non-gaming revenue were the key
driver for the profit.
"Most areas of the result were ahead or close to our
expectations, with the major positive surprise the very
strong performance from Auckland gaming machines," Mr Young
said.
The disappointment was the low operating earnings
contribution from the international business, while Darwin,
as expected, remained a weak performer compared with the
other casinos.
The Green Party opposed the Government's proposed deal with
SkyCity to expand its gambling operations in Auckland, Ms
Roche said.
In exchange for SkyCity's building a conference centre in
central Auckland, the Government is understood to be
considering allowing the casino to increase its legal number
of gambling tables and poker machines.
dene.mackenzie@odt.co.nz
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