In his Chairman’s Address at today’s annual meeting, SKYCITY’s Rod McGeoch commented that everyone wants a responsible gaming environment but while smart, responsible, evidence-based regulation makes sense, more regulation does not. “Specifically, we continue to remind regulators in this country that the regulations currently in existence in New Zealand are more stringent than those that apply to our two main, and closest, competitors in Victoria and New South Wales. A more level playing field would enhance the attractiveness of our New Zealand sites as international casino destinations and increase our competitiveness against our cross-Tasman rivals.”

Speaking of VIP play at competitor casinos in Australia, worth some $40 billion in annual turnover, McGeoch stated that the company was well placed to attract the Asian high roller market to its venues both in Australia and New Zealand. “In fact, our gaming venues offer attractive reasons for high net worth individuals to travel to both countries to participate in our games and to see more of both countries. And that’s the key point. These individuals don’t just travel to play, they also come to sight-see and for great facilities. But coaxing them here requires premium travel options, great hotels and other facilities that cater to their expectations. We need to roll out the red carpet for them, make them feel welcome, offer them world-class experiences and they will come.”

“Conversely, unless the settings and the infrastructure are in place to allow us to compete effectively for these high-spending customers, there is a very real risk that we will lose out to emerging venues in Singapore, Korea, Philippines, Taiwan, Vietnam and Macau. That in turn means that New Zealand and the states in which we do business in Australia risk missing out on tourism business, economic stimulation and cross-border tax revenues associated with those visitors.”

The Address given by SKYCITY Chief Executive Officer Nigel Morrison emphasised the moves being made by the company to attract high roller action. These include recently received Gambling Commission approval for plans to create an exciting new dedicated VIP gaming offering on top of the SKYCITY Hotel, which will offer spectacular views over the Auckland harbour and skyline; 4 VIP super villas at the Darwin Resort development; and talks with the South Australian government to create a much larger integrated gaming-based entertainment complex in Adelaide.

First quarter highlights for SKYCITY are a revenue increase of 3.3% and normalised Net Profit After Tax (NPAT) up 3.7%. The positive first quarter result followed on from the record NPAT of $141.7 million for the year ended 30 June 2010. The company has an ongoing strategy to grow international business and turnover for this sector was up over 85% on the first quarter last year.

CEO Nigel Morrison says he is pleased with the start to the 2011 financial year. “This is a pleasing recovery for our local Auckland revenues which are then complemented by strong growth in International VIP Business at Auckland, also up strongly. Across the Group we are pleased with the revenues achieved in the first quarter which has resulted in normalised net profit after tax up 3.7% over first quarter last year and up over 5% on a like with like basis, excluding cinema operations.” (E-10.29.10)

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