SkyCity has booked a 15% decline in profits for the half-year
to December at $66.3 million, after enjoying an $11.5 million
boost from the Rugby World Cup in the same period last year.
SkyCity has said it intends maintaining its dividend for the
full year, unchanged at 20c per share, and gave guidance its
expected normalised full-year-after-tax profit would be
''around $140 million''.
Reported revenue was $487.3 million, or 1.3% down on a year
ago, including a decline in wins against international
While SkyCity has numerous expansion options under
consideration at present, it made little mention of the
controversial convention centre expansion in Auckland, plans
to expand operations substantially in Queenstown or
opportunities in the Philippines.
''Various expansion options are being considered [for
Queenstown] and we will expect [they] will be announced
during the second half, 2013,'' the company said.
Now that SkyCity can up its betting limit at Queenstown,
having taken over its former joint venture partner's
shareholding, SkyCity wants its own southern accommodation in
place to entice VIP customers from Auckland to Queenstown.
Craigs Investment Partners broker Peter McIntyre described
the result as ''average and underwhelming'', noting
international visitors to New Zealand had won more than
expected - a difference of $8.4 million.
''On the other side of the ledger the dividend guidance of
20c per share will keep SkyCity investors reasonably happy,''
Mr McIntyre said.
Shares in SkyCity were down 0.5% following the announcement,
He said full-year guidance was reduced to about $140 million,
with contributions from Auckland and Darwin expected to be up
in the second half, with Adelaide casino flat.
Mr McIntyre said SkyCity's net debt of $543 million was below
Craigs' forecast of $595 million, while net operating
cashflow of $111 million was below Craigs' forecast of $121
Forsyth Barr broker Peter Young said the group revenue was
in-line with expectations, reflecting ''flat'' results from
casinos in Auckland and Adelaide, ''continued gains'' from
Hamilton, and ''strong recovery'' in Darwin.
The reported profit, before abnormal items, was similarly
in-line with expectations, assisted by low interest rates and
tax, Mr Young said.
Following SkyCity's changed profit guidance to ''around $140
million'', Mr Young said he hoped this was ''conservative'',
as opposed to ''the ''overly optimistic'' guidance a year