SkyCity Entertainment has seen a strong recovery in its business operations. Photo: RNZ / Marika Khabazi
SkyCity Entertainment says it has seen a strong recovery in its business operations, which had been significantly affected by Covid-19.
The first-half period was the first complete period free of pandemic related restrictions since 2019.
Key numbers for the six months ended December compared with a year ago:
- Net profit $22.8m vs $33.7m loss
- Revenue $462.6m vs $289.8m loss
- *Normalised net profit $73.1 vs $19.5m loss
- *Normalised revenue $487.4m vs $260.8
- Underlying profit $106.3m vs $20.4m
- Interim/final dividend 6 cents a share vs none
*The normalised results smoothed out the actual win-rate with a theoretical win-rate of 1.35 percent.
"A positive recovering domestic customer visitation has been the key driver of performance in this half," chief executive Michael Ahearne said.
"The return of tourism to New Zealand has been a real benefit to SkyCity."
Regulatory matters
The company is however dealing with a number of matters, including an investigation into the suitability of SkyCity's Adelaide to continue to operator.
An independent review into SkyCity's Adelaide casino is pending until the completion of court proceedings against the same casino.
Those proceedings against the casino had been brought by the Australian Transaction Reports and Analysis Centre - AUSTRAC - relating to alleged breaches of anti-money laundering laws, involving as much as $4 billion and potential fines of tens of millions of dollars, which were still before the court.
"SkyCity considers this is one of the rare situations contemplated by financial reporting standards whereby a reliable estimate for an AUSTRAC penalty provision is not yet possible," the company said it an investor presentation.
However, it said its response to the Australian regulation matters, which included enhancements to its host responsibility and review of its compliance, had cost $6m in the first half, bringing the total to $10m.
Ahearne said the company's priority was on ensuring it met its regulatory commitments.
NZICC fire
The International Convention Centre (NZICC) and Horizon Hotel were damaged in a massive fire in October 2019, with the final tally of costs to be materially different from the $22m insurance payout accounted for in the six month result.
For example, SkyCity Entertainment had been dealt a blow with a $220m deal for its Auckland car parks was torn up, for a failure to deliver on time.
The deal with Macquarie was set to run until 2048, with international car park operator Care Park originally set to operate the site on behalf of the group.
"The project remains very complex," Ahearne said.
The hotel was expected to open next year and the NZICC the following year.
Auckland weather
Ahearne said the SkyCity property was not significantly affected by the widespread weather events.
