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Source: ONE News -
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Skycity Entertainment Group's underlying net profit is well ahead of last year's, up 13% to $115.3 million, the group says.
Skycity's underlying net profit for the year to June 30 was $115.3 million compared with $102 million for the same period in 2008.
Underlying revenues increased 6% to $847 million and ebitda (earnings before interest, tax, depreciation and amortisation) rose 4% to $300.5 million.
The lift in revenue was strongest in the second half of the year, reflecting revenue growth in table games and a continued focus on cost management across its casino and cinema businesses.
ABN Amro market analyst Jennie Moreton says the result was in line with Skycity's recently revised guidance and market expectations.
"Revenues have been up across all their businesses. Auckland gaming machines, which had originally peaked in about 2004 and have been in steady decline improved in the first half of 2009 and that continued through the second half.
"That's a good result given that the gaming machine market overall was down about 5%," she says.
Skycity CEO Nigel Morrison says its Adelaide casino performed particularly well, with ebitda up 42% to $AU29.4 million - a record result since the casino was purchased in 2000.
Skycity cinemas in New Zealand also upped their performance with ebitda rising 46% to $7 million.
During this time the group's new management team introduced Bollywood and Asian cinema movies to its Auckland market.
In April, the group moved to improve its capital structure and build capital for future opportunities, successfully raising $228 million through an oversubscribed institutional placement of $185 million and a share purchase and top up plan of $43 million.
As part of its capital management plan Skycity has also repaid $300 million in debt since June last year, including its $129 million bank facility and the buy back of US private placement debt worth over $177 million.
The group's net debt now sits at $681 million.
Skycity says it will pay a final dividend for the 2009 year of 6.5 cents per share, better than market expectations, bringing its total dividend for the year to 15.5 cents per share.
Morrison is upbeat on the year ahead as the economy looks to set improve but expects a potential rise in unemployment will impact the group's growth.
He also says a smoking ban in its Darwin casino due to come into effect at the start of next year may see revenues from its gaming machines drop.
Skycity shares were up six cents to $3.60 just after
midday.
