October 18, 2012 / 9:07 PM / 5 years ago

NZ's Sky City Q1 revenues down, expects year profit lift

WELLINGTON, Oct 19 (Reuters) - New Zealand gaming company SkyCity Entertainment Group said on Friday its group revenues for the first three months of the year were down on a year ago, but still expected to beat last year’s profit.

The company said revenues between July 1 and Oct 17 were down 2.1 percent on last year at NZ$283.2 million ($232 million), although when normalised it stood 1.5 percent up.

Sky City, which owns or has interest in four of the country’s six casinos and two in Australia, also said it expected to beat last year’s profit of NZ$138.5 million.

“Based on current mark conditions and trading patterns, we would be disappointed if we did not deliver full year normalised group net profit after tax...in the NZ$140 millions,” the company said in a presentation to the annual meeting.

Shares in SkyCity, a top-10 stock, last traded down 1 percent at NZ$3.94.

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.

It repeated that it would not proceed with the project if it could not realise an acceptable level of return on capital.


Gyles Beckford

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