SkyCity Entertainment group, who are responsible for many of the casinos in New Zealand, is expected to release financial statements which report a 30% boost of profits over the last fiscal year. Reports say this is through its financial success and growth in New Zealand alongside a good presence worldwide.
Net profit for the six months would be in the range of around $69 million to $71 million leading up to December, according to The Auckland Casino operator. This is compared to $54.6m from the year earlier – a great improvement and signs that the casino market in New Zealand is growing stronger and stronger. This is startling when compared to the struggling casinos based in Atlantic City.
It seems that the high-rollers are really bringing the cash in with its international high rollers sector bringing in $7 billion worth of revenue in the first half period. Generally speaking, high rollers tend to play high-stakes blackjack, with profits for that specific game also rising in the last quarter. SkyCity have said the improved result also reflected some significant cost savings at the under-performing Adelaide Casino, as well as lower debt funding costs.
Earnings could rise to $86 million
Ignoring adjustments made for the ‘win rate’ of its high-roller business and a write down in the value of a range of its non-current assets – including a number of buildings short-listed for construction to pave way for the new convention centre – first half earnings could rise to between $83 to $86, which is up from $66 million.
We’ll know more in February, of course, when the business is set to release their first half earnings report.
Sky City’s shares are rated ‘hold’ according to analysts who are responsible for rating all of New Zealand’s stocks. The last time the stocks were traded they pulled in a $4.16 a share, and has gained 6.7% over the last 12 months.
We can take it for granted that Sky City are looking forward to this year’s first half returns. Ultimately, when businesses are doing well, the economy is doing well. Great news in the grand scheme of things!
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