Sky City on track for double-digit growth
Sky City Entertainment Group Limited (SKC) said it was on target to deliver double-digit NPAT growth in the current financial year based on first quarter results. However, the gamer said it would be challenging in the current economic environments, both in Australia and New Zealand.
Sky City delivered NPAT of $115.3 million in FY09, up 13% on the previous year.
The company reported said first quarter revenue was up 4.7% year on year.
Chief Executive, Nigel Morrison, said revenues of the Australian operations increased overall by over 7% in the quarter, however expects gaming revenue would be hit by about 15% in the second half due to the impact of the smoking bans to be introduced on 2 January 2010 in Darwin.
The company said continued challenging economic conditions in New Zealand, meant that overall revenues of the Auckland Casino were up marginally by 1.1% on the previous year, while its gaming revenues remained flat.
“Sky City Auckland’s gaming machine revenues have continued to outperform the market and gain market share against a backdrop of further softening in overall pub and club gaming machine revenues in New Zealand in 1Q10,” Sky City said.
The company added that its International Business reported turnover growth up 38% to $406m from $295m in the previous corresponding period.
Sky City said its Cinemas business delivered revenue growth of 14% over the quarter, year on year.
As at 1140 AEDT, Sky City shares were up 9c to $2.78.
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