August 14, 2012 / 9:06 PM / 5 years ago

NZ's SkyCity year profit up nearly 13 pct

WELLINGTON, Aug 15 (Reuters) - New Zealand gaming company SkyCity Entertainment Group on Wednesday said its profits for the year rose almost 13 percent on improving revenue.

Sky City, which owns or has interest in four of the country’s six casinos and two in Australia, reported a net profit of NZ$138.5 million ($111.7 million) in the 12 months to June 30, up 12.6 percent from NZ$123 million last year.

A Reuters estimate based on three analysts forecast a profit of NZ$142.2 million.

SkyCity announced a final dividend of 8 cents per share, unchanged from a year ago.

In May, the company lowered its full-year normalised profit guidance to the “low NZ$140 millions” from the “high NZ$140 millions” previously given in February.

Shares in SkyCity, a top-10 stock, closed at NZ$3.58 on Tuesday, having gained nearly 4 percent so far this year compared to a near 10 percent rise for the benchmark NZX-50 index.

Sky City, which dominates the New Zealand casino industry because of a ban on new establishments, said revenue at its flagship Auckland establishment also improved.

It also has casinos in Adelaide and Darwin in Australia, where it competes with Tabcorp and Crown Ltd.

SkyCity has proposed building a convention centre in Auckland for around NZ$350 million, but in return wants the government to extend the life of its operating licence, increase the permitted number of gambling machines, and change some of the sector’s rules.

Reporting by Naomi Tajitsu

Our Standards:The Thomson Reuters Trust Principles.
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