SKYCITY Entertainment Group has announced an after tax net profit for the financial year to 30 June 2007 of NZ98.4 million (US$68.9 million), in line with its profit guidance published 22 May but down on 2006. Total revenue was up nearly 7% to NZ$816 million (US$571.3 million). Elmar Toime, Executive Director, commented that it had been a challenging year but was confident about the future.

“Over the past months we have undertaken a comprehensive review and restructure of our business operations and put plans in place to ensure improved performance. We are on track to deliver cost reductions totalling $33 million throughout FY07/08 by focusing on labour cost management, procurement initiatives and ensuring a culture of tight cost control.”

The company says it will test the sale value of its cinema assets and that interest in the Adelaide casino would be considered should a binding offer be made that exceeds the company’s own valuation of the property. Refurbishment of SKYCITY Auckland, due for completion in March 2008, has impacted revenue in the 2007 financial year. The upgrade should generate good customer response.

A new Chief Executive is expected to be appointed by October and seek regulatory approval in the company’s three regulatory jurisdictions. Two new directors will be appointed within a few weeks, also subject to regulatory approval. According to Elmar Toime, “We have, or are in the process of, putting in place the systems, resources and people to enable us to enhance our vision of being the most popular entertainment destination in every community in which we operate.”

SKYCITY Auckland’s revenue performance was bolstered by strong non-gaming revenues and SKYCITY Hamilton delivered a strong revenue performance in all sectors. SKYCITY Darwin casino license extension was approved by Northern Territory Government and increased revenues and managed costs to deliver a 7% increase in its EBITDA result.

Elmar Toime concluded, “A strong commitment to host responsibility and harm minimisation is inextricably linked to all that we do to ensure that the business, at all sites, continues to provide a safe and enjoyable environment for all customers and in turn, sustainable value for our shareholders.” (E-08.20.07)

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