Chief executive Michael Ahearne said business was now back to pre-Covid levels. Photo: RNZ / Marika Khabazi
Gaming company SkyCity Entertainment has had a strong recovery as open borders and the lack of Covid-19 restrictions lifted activity, although its bottom line has been affected by provisions for possible penalties associated with its Adelaide casino.
Key numbers for the year ended June vs year ago:
- Net profit $8.0m vs net loss $33.6m
- Normalised profit $138.8m vs $9.7m
- Revenue $926.2m vs $639m
- Normalised revenue $966.7m vs $631.5m
- Final dividend - 7 cents per share.
Chief executive Michael Ahearne said business was now back to pre-Covid levels, with the Auckland flagship casino driving group earnings as tourists returned to the city.
"We are pleased to have a full year of no interruptions, which has meant SkyCity has rebounded strongly."
He said there had been "robust performances" for its New Zealand casinos, hotels, hospitality and attractions.
The strongest lift to revenue came from gaming machines, which increased 50 percent to $477m, and accounted for about half of overall group income.
Earnings from gaming tables also rose more than 50 percent, and earnings from its high-roller international operations more than doubled.
SkyCity Auckland's operating earnings rose to $256m from $99.2m, while there was recovery in earnings from the smaller Hamilton and Queenstown establishments.
Adelaide problems
The Adelaide casino continued to have mixed fortunes, with an increase in gaming revenues and increased convention business after the $300m upgrade of recent years.
However, SkyCity has taken a near $100m hit in one-off costs through writing down the value of the casino licence and setting aside for potential penalties for alleged breaches of Australian anti-money laundering laws.
"We look back and we didn't meet the standards that we should have, however, what we have been focusing on is enhancements and improvements in our processes," Ahearne said.
SkyCity had appointed a new senior executive responsible for meeting financial crime and host responsibility standards and beefed up its compliance section.
The Horizon Hotel in Auckland was expected to be open next year and the International Convention Centre in 2025, after the 2019 fire which forced a clean up and reconstruction and delayed the completion by several year.
Ahearne declined to be specific about any remaining financial issues with contractor Fletcher Building, and said the company was looking forward to taking back control of its carparks, after the collapse of an agreement to sell a concession to a fund operated by the Macquarie investment group.
Ahearne said the outlook was positive despite the economic uncertainty with returning cruise ships, increased tourism and events.
"We are cautiously optimistic about the outlook for the coming year. Our new operating model gives us more flexibility to navigate the year ahead and be agile enough to adapt to changing operating climates."
