SkyCity Entertainment Group's first half bottom line profit is expected to be down, despite strong growth in the international high rollers business and a favourable performance in Auckland.
SkyCity's net profit for the second half of last year was expected to be about $82 million. Photo: RNZ / Cole Eastham-Farrelly
The casino operator said first half net profit for the six months ending December was expected to be about $82 million, which is about 11.5 percent down on the previous year's $93.5m.
Underlying profit was expected to be down 8.6 percent to about $165m.
However normalised earnings, which smoothed out volatility in the international business's actual win rate, painted a better picture.
The normalised win rate is 1.35 percent, versus the actual win rate of 0.98 percent in the first half, and 1.7 percent the year before.
On that basis, SkyCity's normalised net profit was expected to be up 11 percent to $97m, with normalised underlying profit up about 10 percent to $189m.
However, it said second half earnings growth would be harder to achieve, given the strong result the year earlier.
It expected full year normalised profits would only be slightly ahead of its previous guidance for modest growth.
The company will report its first half result on 13 February.