SkyCity bets on rebrand to pull in the punters

Nigel Morrison would like to bring more theatre and character to SkyCity. Photo / Herald on Sunday

SkyCity Entertainment is rebranding its Auckland casino complex as a full entertainment destination as it tries to bring in customers and develop a higher profile with charities.

The company is to begin a substantial advertising campaign mid-year.

Some firms will be wary about the amount of disposable income in the economic downturn, but SkyCity - which faces a challenging period with its casino revenue, especially from pokie machines - is ramping up its restaurant and bars business.

The company wants to attract customers to the casino and broaden its image. It has adopted a higher profile with monthly events linked to charities.

Chief executive Nigel Morrison said he was looking at innovations for the casino complex like a champagne bar and whiskey bar.

"Quite frankly I'd like to see some Las Vegas dancing girls," said Morrison, who took over the company last year.

Morrison said changes - improving bars and restaurants and letting out properties to turn Federal St adjacent to the casino into an entertainment precinct - would not require a big capital outlay. He said some of the existing SkyCity bars and restaurants were doing better than others and he saw prospects for third parties or partners to be involved in them.

"The Auckland casino is our key asset. But our casinos are also diverse entertainment companies. We have been a bit constrained in the past," he said.

"We need to have restaurants and bars that appeal to a wider range of people - bringing more theatre and character into bars at the casino and adding more entertainment in the precinct."

He was not fazed by the impact of economic downturn on the entertainment sector and the ability to attract third parties.

The strategy marks a return to the approach under founder and former managing director Evan Davies.

Bars and restaurants have alway been a part of the SkyCity concept, but the purchase - at an inflated price - of SkyCity Cinemas extended that trend.

That approach faltered with Davies' departure and while SkyCity tried unsuccessfully to sell the cinemas, they were a positive image for a company whose fortunes rise or fall on gambling revenue.

Morrison said that another part of rebranding - basing monthly social events at the casino complex - was linked to charities.

The events aimed to cover their costs, but he said they would also return value by improving the SkyCity brand.

Performance of the restaurants and bars is hard to quantify from interim results last week. But non-gaming revenue - including hotels and its conference centre - was the only area to grow in year-on-year figures.