File photo. Photo: RNZ / Marika Khabazi
Casino operator SkyCity continues to expect a modest increase in underlying earnings, despite a boost from the recent FIFA Women's World Cup.
In a trading update to the share market this morning, the company said it started the 2024 financial year with a good performance in July and August, particularly in Auckland due to the World Cup.
However, the boost was short-lived.
"This was probably masking weaker domestic spend, due to the uncertain economic environment, which became more apparent in September trading," outgoing chief executive Michael Ahearne said.
The company is positive about prospects for the upcoming summer tourism season in New Zealand, with cruise ship visits and increased international aircraft capacity expected to support strong growth in visitor arrivals.
The 2024 forecast of modest growth assumed the integration of Auckland car park earnings for the second half of the year, but did not include any potential impact from the Department of Internal Affairs' application to temporarily suspend its New Zealand casino licence.
Ahearne said the troubled Adelaide casino was affected by tougher economic conditions, as inflation and cost of living pressures reduced consumer spending.
SkyCity set aside close to $100 million for one-off costs last year, by reducing the book value of the Adelaide casino licence and setting aside money for potential penalties for alleged breaches of Australian anti-money laundering and counter-terrorism financing laws.
