The SkyCity Entertainment Group's operations showed solid growth in the year ended June but the operating profit disappointed brokers, despite growing at 6% in the period.
Earnings before interest, tax, depreciation and amortisation (ebitda) were $304.9 million in the year, up from $287.6million.
Earnings before tax were up 8.9% to $178.2 million and the reported profit before abnormal items was also up 8.9% to $134.1million.
An unchanged total dividend of 20c per share for the year was declared.
Forsyth Barr broker Suzanne Kinnaird said the company's underlying profit of $134.1million was close to her forecast but was boosted by lower interest costs.
The operating profit was below expectations due to higher corporate and branding costs.
As expected, Auckland was the engine, with revenue growth of 13% versus group growth of 9%. Auckland's operating profit grew 14%.
Hamilton was ''solid'' with a strong second half, Darwin was recovering, helped by growth in its international business while Adelaide continued to battle, she said.
''July trading had similar themes with robust Auckland, Hamilton and international revenue, some signs of life in local revenue at Adelaide and local Darwin revenue remaining sluggish. No 2016 guidance was provided and we do not expect to materially change our forecasts.''
There was little news on major projects, Ms Kinnaird said.
SkyCity continued to aim for an October signing of the building contract for the international convention centre and a December start date. The company was planning to refurbish the Auckland atrium area and expand the gaming podium.
SkyCity had indicated there was some timing uncertainty around the start date for the Adelaide project given it had to be co-ordinated with other planned development in the precinct.
A long-term capital expenditure outlook would be provided once the convention centre building contract was signed and Adelaide plans were more advanced, she said.
''SkyCity currently has no plans to separate its property assets but continues to assess a range of property related funding issues.''
Chief executive Nigel Morrison said Adelaide had only four months in the last financial year that were not affected by refurbishment work and Adelaide showed some positive trends in the fourth quarter with higher visitation and improved ebitda margins as the company eked out efficiencies.
In Darwin, ebit declined 1.2% to $26.7million as revenue slipped 5.8% to $123.2million while expenses dropped 8.4% to $82.7million. Darwin achieved a ''satisfactory'' result despite a challenging local market, he said.
SkyCity's other New Zealand businesses, located in Hamilton and Queenstown, increased ebit 15% to $16.4 million.
The company said its international business for high rollers posted ebit of $29.9million, compared with a loss of $2.3million a year earlier, as revenue more than doubled to $112.1million from $55.8million, while expenses rose 42% to $82.2million. The win rate of 1.36% in the year was broadly in line with the theoretical win rate of 1.35%.
Local gaming revenue increased 3.8% to $592million, while non-gaming revenue gained 9.2% to $212million.
SkyCity said it had enough debt funding to meet expected funding requirements until at least the start of 2018 but was continuing to investigate a potential New Zealand retail bond issue following the repayment of capital notes in May.
The shares last traded at $4.29 and have gained 11% this year.
