Sky City revenues rise 3.3pc

Sky City is reporting a "pleasing" first quarter with normalised revenues up 3.3 per cent on a year earlier.

Normalised net profit was up 3.7 per cent, and more than 5 per cent on a like with like basis excluding the cinema operations, chief executive Nigel Morrison told the company's annual meeting today.

Auckland gaming machine revenue was down 2.7 per cent in the three months to September, compared to the first quarter of 2010, but was up 3.2 per cent on the second half of 2010.

Auckland table games revenue fell 2 per cent on the first quarter, but rose 12.1 per cent on the second half.

Hotels and conventions revenue in Auckland was showing good growth, while international business volumes in Auckland were more than double the first quarter last year, Morrison said.

The company was reluctant to give full year guidance until it had greater visibility on the impacts of tax changes and consumers' focus on deleveraging.

But Sky City would be disappointed if it did not achieve the analyst consensus for normalised net profit for the 2011 financial year of $127.4m. In 2010 normalised net profit was $129.1m.

Sky City chairman Rod McGeoch said the convergence of internet gaming and land-based casinos was a strategic issue looming for the company.

"Until now, regulators have largely sought to shut down internet gaming. But like the influence of the internet in every aspect of our lives, I suspect it is only a matter of time before they succumb to demand. We have to be ready for that."

The business was in "very good" shape, and next year's Rugby World Cup should kick off Sky City's next 25 years of success.

Sky City shares were up 5c to $2.95 shortly after the market opened.

- NZPA