Analysts predict a dip in SkyCity's profit

Analysts forecast a fall in net profit for SkyCity Entertainment for the next financial year, which would be the first drop since 2004.

NZ's biggest casino operator's net profit for the year could fall by 1.4 per cent to $118.3 million, according to the mean estimate of 10 analysts in a Thomson Financial survey.

Sales could rise by 10.7 per cent to $833 million and the dividend drop 2c to 24c. Estimates for the 2008 year showed net profit up 8.9 per cent to $128.9 million.

SkyCity would not respond to the survey but had signalled activity for the next year following last month's annual result announcement.

It was set this year to invest in its casinos in Adelaide and Auckland, where a redevelopment of the gaming floor, estimated to cost $40 million, was in the pipeline.

It would open a sports bar at Hamilton's Riverside Entertainment Centre and refurbish facilities.

Managing director Evan Davies said last month that slowing economic conditions and higher petrol prices had hurt revenue.

He said Auckland operations had recovered from the smoking ban but it was expected to hit Adelaide in 2008.

Shares in SkyCity closed up 2c on Friday at $4.90.