SkyCity’s FY19 earnings growth to beat expectation

New Zealand casino operator SkyCity is expected to report better-than-expected growth in normalized earnings after a strong six months ended December 2018.

In a statement to the New Zealand Stock Exchange today the company said it expected normalized EBITDA in FY19H1 to be around $189 million, up 10 percent from the prior year period, and normalized NPAT in FY19H1 of $97 million, up 11 percent year-on-year.

SkyCity said the growth is primarily due to a favorable performance in Auckland and strong growth in the International Business.  This, in turn, reflected a better than expected win rate in its International Business.

SKYCITY said the actual win rate was 0.98 percent in FY19H1, which was below the theoretical win rate of 1.35 percent.

The company now expects that earnings for 2019 financial year to be slightly ahead of the previous guidance for modest growth in normalized EBITDA, although it notes that earnings growth in FY19H2 will be harder to achieve given the improved performance achieved in FY18H2.

The company will announce its interim results on 13 February 2019.