Casino operator SkyCity has reported a vastly reduced underlying profit as Covid ravaged its operations but says there are signs business is returning.
Photo: RNZ / Cole Eastham-Farrelly
Key numbers for the year ended June (millions of $) vs year ago
- Net loss $33.6m vs profit $155.8m
- Normalised profit $9.7m vs $90.0m
- Revenue $639m vs $952m
- Normalised revenue $631.5m vs $822.5m
- Final dividend - nil vs 7 cps
SkyCity said lockdowns had knocked the earnings of the flagship Auckland casino, which had been closed for 107 days during the first half of the year, but when it was fully open business had started to return to pre-Covid levels.
The normalised net profit, which stripped out one off items such as commissions and changes in asset values, beat its guidance, but overall profit was still lagging 2019.
Chief executive Michael Ahearne said business was returning to more normal operation and there were clear signs of recovery.
"Following the relaxation of operating restrictions during the final quarter of the 2022 financial year, SkyCity has seen the strong performance from its local gaming businesses in New Zealand continue into the 2023 financial year and improved performance from SkyCity Adelaide."
He said its international gaming business was recovering, and its smaller New Zealand businesses in Hamilton and Queenstown similarly showed improved patronage, while trading was improving at the refurbished Adelaide.
The online casino, launched in 2019 and based in Malta for legal reasons, increased its earnings by 29 percent on the previous year and was now "a meaningful contributor" to group earnings, accounting for 9 percent of operating earnings.
Ahearne said the company has kept a tight rein on its costs, and had about $300m in funding available, but would not pay a current dividend to ensure it complied with conditions of its banking covenants.
He said the rebuild of the International Convention Centre, which was badly damaged by fire during construction in October 2019, was progressing and it was expecting the associated Horizon hotel to be finished by 2024 and the centre in 2025.
Its Adelaide casino is currently the subject of two inquiries -- by Australian financial regulator Austrac for alleged breaches of anti-money laundering rules, and a South Australian state inquiry into whether it is a fit company to hold a casino licence.