NZ casino profits fall
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Sky City Entertainment Group, New Zealand’s largest casino operator, has reported 6.4% drop in profits for the six months ending 31 December, according to a Bloomberg report.
The company, which derives over 70% of its profits from its casino and conference centre complex in Auckland, saw pre-tax income drop to NZ$148.5 million (US$76 million) for the half, down from NZ$158.7 million a year earlier, according to the report.
Earnings at the Auckland complex fell 5.2% as domestic spending slowed. Earnings from Australia however, increased 7.6%, boosted by earnings from its Adelaide development and the weaker New Zealand dollar.
“It is very much, currently, a story of two economies,” Sky City’s CEO, Nigel Morrison, was quoted saying. “From an Australian economy point of view, we’re very fortunate to be in South Australia and the Northern Territory.”
Morrison did not give any indication of how well the company had fared so far in 2009, except to say no issues had arisen to “distort” the most recent figures.
Sky City Entertainment Group owns hotels, casinos, cinemas and other entertainment outlets in Adelaide, Auckland, Darwin, Hamilton and Queenstown.
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