The domestic consumer environment remains robust, SkyCity says. Photo: AFP
Casino operator SkyCity Entertainment says it has had a strong start to the year with profit and revenue above its expectations.
Chief executive Michael Ahearne said New Zealand operations were being driven by a stronger than expected recovery in the hospitality sector with positive local gaming performance, particularly in Auckland and Hamilton.
He said the first quarter (Q1) normalised underlying profit, which smoothed out the high roller win rate, was about 10 percent above pre-Covid-19 levels, excluding discontinued businesses.
"The domestic consumer environment remains robust and, despite an uncertain economic environment emerging, the properties are benefiting from operating without restrictions, and ongoing growth in domestic visitation," he said.
"We have seen a positive start to the year in Adelaide achieving its highest revenue result yet in the first quarter."
While the outlook for international tourism looked positive, Ahearn said the company was cautious.
"We are cautious on extrapolating Q1 performance at this time to the full financial year outlook given the global economic uncertainty, and how this will impact the domestic economies in which our businesses operate."
Given the uncertainty, he said the company was unable to provide a Q1 profit outlook.
