Revenue up at Sky City

Photo / Dean Purcell

Casino operator SkyCity Entertainment Group reported a 4.7 per cent rise in first quarter underlying revenue, boosted by a 7 per cent rise in Australia.

Chief executive Nigel Morrison said the marginal rise at Auckland, for the three months to September compared to a year earlier, was a result of continued challenging economic conditions in this country.

Auckland Casino revenues were up 1.1 per cent for the quarter compared to the previous year, while gaming revenues were flat, with revenue of $45m from gaming machines and $30m from table games.

While SkyCity had not increased gaming machine revenues in Auckland, it had continued to outperform the market and gain market share, Morrison said.

Non-gaming revenues at Auckland rose $1m to $26m.

At Adelaide Casino revenues were up 8 per cent, with machines revenues up 9 per cent and tables revenues up 5 per cent.

At Darwin Casino gaming revenues were up 7 per cent, with gaming revenues up 8 per cent and non-gaming revenues up 4 per cent.

A A$40m ($50.6m) reburbishment finished at Darwin in July, increasing gaming machines from 550 to 750.

Smoking bans to be introduced at Darwin from January 2 were expected to result in a 15 per cent fall in second half gaming revenues, Morrison said.

At SkyCity Cinemas admissions rose 17 per cent and revenues were up 14 per cent.

Based on the first quarter results, SkyCity believed it was on track to achieve its objective of double digit net profit growth in the 2010 financial year.

At the company's annual meeting today chairman Rod McGeoch said goodbye to director Elmar Toime, who is retiring from the board after being with it from the start in 1996.

Toime also stepped into the role of executive director for eight months from June 2007 while the company searched for a new chief executive.

SkyCity shares were up 2c in the first hour of trading to $3.42, down from a year high of $3.55 last week.

- NZPA