UPDATE 1-NZ's Sky City year profit falls 49 percent

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WELLINGTON, Aug 25 (Reuters) - Sky City Entertainment Group Ltd (SKC.NZ), New Zealand's largest casino operator, reported a 49 percent fall in full year profit on Monday, but said it had had a satisfactory start to the current year.

The group, which has a near-monopoly in New Zealand, said reported net profit for the year to June 30 was NZ$49.9 million ($35.3 million) compared with NZ$98.4 million last year.

That was in line with a forecast of NZ$49.4 million in a survey of eight analysts by Reuters Estimates.

Net profit adjusted for one-off items rose 19 percent to NZ$111.9 million. The company had previously forecast a profit of NZ$108-110 million before a NZ$60 million writedown of its cinemas business, announced in February.

Shares in Sky City opened down 1.5 percent at NZ$3.38, compared with a broader market .NZ50 up 0.5 percent.

Sky City will pay a dividend of 10.5 cents per share, compared with 12 cents per share last year, and said it would continue to target a 90 percent payout ratio.

It did not give a specific forecast for the year ahead but said it had experienced satisfactory trading in the year to date, and would concentrate on cost controls and debt retirement in the year ahead.

The company owns or has an interest in four casinos and a cinema chain in New Zealand, where a ban on new casinos has given it a virtual monopoly.

It also has casinos in Adelaide and Darwin in Australia, where it competes with Tabcorp (TAH.AX) and Tatts Group (TTS.AX).

Its flagship Auckland casino, which accounts for just under half of all revenue, reported flat earnings after a refurbishment programme was completed during the year.

Group revenue was up 1.7 percent to NZ$818.8 million, with earnings before interest and tax up 8 percent at NZ$238.5 million. ($1=NZ$1.41) (Reporting by Adrian Bathgate)