At the end of September SKYCITY Entertainment Group published its shareholder review for the year ended 30 June 2011. The document reported record underlying normalised net profit after tax of NZ$130.9 million, up 4% from the previous year, and healthy growth in normalised revenues, driven by good momentum in earnings in the second half across the Group. Reported net profit of NZ$123.0 million represents an increase of 20.5% percent on last year and is after providing a NZ$15 million impairment write-down on the Christchurch property damaged in an earthquake.
Rod McGeoch, Chairman, stated that economic conditions had been tough in the first half but had improved somewhat in the second. He expressed satisfaction that an ambitious timetable of developments was completed on time for the Rugby World Cup and for a budget that many operators would be very pleased to have achieved. “It’s important to recognise too that reinvestment in the business doesn’t stop here. On the contrary, the work done in time for the Rugby World Cup is part of the overall strategic plan for the company that it will continue to roll out over the next five years.”
According to Nigel Morrison, Managing Director and CEO, there are clear signs of economic confidence, with revenues
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stabilizing or growing in the second half right across the business. He commented that International Business had another strong year and turnover had risen 50%. New investment in VIP gaming salons and accommodation now offers high end Asian players the same standards as are available in Macau, Singapore and Australia.
Morrison concluded, “With business confidence in New Zealand improving, positive employment statistics, retail turnover growth and a stable interest rate environment, we are confident of a consistent economic backdrop for the business over the next 12 months. We have real expectations for solid growth across our core businesses during the Rugby World Cup. October is going to be an amazing month to be in Auckland.” (E-10.07.11)
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