Sky City Entertainment Group, leading New Zealand entertainment and gaming group, last month released their annual financial results which show a 13.1% improvement, year-on-year, in net profit after tax. Net profit after tax rose to $145.7 million, with total revenue increasing by 7.6% to $1.1 billion.
Responsible for tour casinos across New Zealand, along two in Australia, the Auckland-based firm report a rise year-on-year to 8.2%, before tax, interest, depreciation and amortization to $330.1 million. Normalised net profit after tax for the 2015 – 2016 period rose to $152.7 million, a boost of 13.9% on last year’s results.
SkyCity’s Interim CEO John Mortense suggested the improved financial results are due to the performance of the Auckland wing of SkyCity’s empire, along with attracting international high rollers.
Strong financial year for Auckland casino
“This financial year has been a successful one for SkyCity Entertainment Group”, Mortensen says, “following on from the momentum achieved during last financial year”.
“Strong financial results were achieved across most parts of the business and good progress was made on our major growth projects in Auckland and Adelaide.”
New Zealand is benefiting from record migration and tourism, and SkyCity are certainly taking advantage of this. This boost is due to new gaming concessions, which include the allowance of extra gaming machines and cashless payment technology.
“The continued momentum of SkyCity Auckland reflects the significant investment in the property over the past few years, initiatives to drive incremental value through customer segmentation and positive external factors that remain supportive of the business.”
International businesses aside, SkyCity Entertainment Group reported that its SkyCity Auckland venue, accounting for 85% of recent earnings, increased twelve-month earnings before interest by 8.2%. The same cannot be said for the SkyCity Hamilton, SkyCity Wharf Casino and SkyCity Queenstown, with annual earnings rising only by $16.2 million, or 1%. The main aim now is to follow this through into the next fiscal year, with a focus of growing the business in the South of Australia.