Tough conditions drag on SkyCity Q3 revenue

SkyCity Entertainment Group posted a 4 percent decline in revenue for the three months ended March 31. The group said it was dealing with flat gaming revenue at its flagship casino in Auckland, and tough operating conditions at its Australian operations in Darwin and Adelaide.

Group revenue fell to $258.1 million from $268.9 million a year earlier, with its Auckland casino reporting a 1.5 percent dip in revenue excluding international business to $141.8 million.

On a like-for-like basis, SkyCity said Auckland's sales were up 1.2 percent with modest growth in its non-gaming revenue and flat gaming revenue.

Sales for the Adelaide casino fell 1.8 percent to A$36 million ($26.8 million), while the Darwin operation reported a 5 percent drop in revenue to A$23.2 million ($17.3 million) in the face of tough trading conditions and competitive pressures.

Revenue from its international high-roller business rose 5.1 percent to $38.2 million ($28.5 million) on a normalized basis, adjusted for a theoretical win rate of 1.35 percent against an actual win rate of 1.27 percent, due to strong activity over the Chinese new year holiday. In actual terms, revenue from the international business was down 2.3 percent.

In February, the company posted an 18 percent rise in first-half profit to $83.8 million ($62.2 million), and said it expected the Auckland unit to achieve "modest earnings growth" in the second half.

SkyCity shares have gained 14 percent so far this year.

More news from this jurisdiction

New ZealandWednesday, Sep 13, 2017

A former casino manager of New Zealand’s SkyCity Casino in Hamilton has been sentenced to seven years in prison for embezzling nearly NZ$2 million from the company.

New ZealandWednesday, Sep 06, 2017

New Zealand-based casino operator SkyCity Entertainment Group has announced the retirement of its group chief operating officer, John Mortensen, effective December 31, 2017.

New ZealandThursday, Aug 03, 2017

Plans to levy foreign bookies taking bets on local sports and racing events in New Zealand are moving forward, according to local sources.

New ZealandThursday, Jun 29, 2017

Gambling venues in New Zealand are getting better at helping problem gamblers, but need to do more, says New Zealand Internal Affairs’ Director of Gambling Compliance, Gareth Bostock.

New ZealandWednesday, Jun 28, 2017

SkyCity Entertainment Group chairman Chris Moller has announced his retirement from the board, effective on December 31, 2017.

New ZealandTuesday, May 16, 2017

New Zealand’s SkyCity Entertainment won an unfair dismissal case against a casino worker fired for authorizing a payment of more than $300,000 to a player, local media reports.

New ZealandMonday, May 15, 2017

OpenBet and Paddy Power Betfair have been selected to deliver technology solutions and supporting data for the New Zealand Racing Board’s fixed-odd betting business.