KEY POINTS:
Sky City Entertainment Group, owner of Auckland's Sky City casino, has posted a 49 per cent fall in full year net profit to $49.9 million.
But when adjusted for non-recurring items, which took into account a $60m write down in the company's Cinemas division, net profit for the year to the end of June was up 19 per cent to $111.9m.
Total revenue rose 0.3 per cent to $818.8m, or up 1.7 per cent when adjusted for non-recurring items, Sky City said.
The company's Auckland business unit reported a "sound result in challenging economic conditions".
Its revenue was up 1 per cent to $402.3m, although earnings before interest and tax were down 0.3 per cent to $174.4m.
Renovations had an impact on the result, with work on the main gaming floor in Auckland having been completed in March.
A final dividend of 10.5 cents per share is to be paid, compared to 12cps the year before. For the full year, the distribution is 21.5cps from 21cps.
Chief executive Nigel Morrison said key financial metrics had improved, with operating cash flow up from $268m to $286m.
Net debt to earnings before interest, tax, depreciation and amortisation (ebitda) reduced from 3.4x to 3.3x, while interest cover increased from 3.3x to 3.8x.
The retirement of $92m of debt had strengthened the company's balance sheet.
Trading in the new financial year had been "satisfactory" in the year so far, with August 8 (08/08/08) being the biggest gaming day in Auckland in more than four years, said Morrison.
The core objective was to maximise the potential of the company's existing assets. The new management team had focused on delivering revenue growth, driving operational efficiencies and maximising ebitda, while tightly controlling capital spending.
At its Adelaide casino the impact on revenue of a smoking ban introduced last November had been less significant than anticipated, while costs had been reduced.
Adelaide revenue was down 4.4 per cent to A$118.2m ($146.1m), while earnings before interest and tax (ebit) was down 3.6 per cent to A$10.6m.
At the Darwin operation revenue was up 7.7 per cent to A$100.8m, with ebit up 14.7 per cent to A$32.7m.
The A$30m first stage of expansion at Darwin started last October and was scheduled for opening next March, including increased gaming floor area, along with new and upgraded gaming, bars, restaurants and service facilities.
In Hamilton revenue was down marginally at $39m, with ebit down 4.8 per cent at $14m, Morrison said.
At Christchurch Casino, earnings were up marginally to $5.7m, while in Queenstown revenues were up 9.4 per cent to $7m with ebitda of $500,000.
The Cinemas division result was "very disappointing", suffering as a result of unusually good weather and management distraction from a sale process, Morrison said.
A new management team was focused on increasing core revenues.
Revenues, adjusted for non-recurring items, were down 2.1 per cent to $66.2m for the year, while adjusted ebitda was down to $4.8m from $8.7m.
- NZPA
