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SkyCity shares rise after FY profit jump

New Zealand-based casino group SkyCity Entertainment has had a rise of almost eight per cent on the Aussie share market after its full-year net profit increased 62.8 per cent.

The group, which runs casinos in Adelaide, Auckland, Hamilton and Queenstown, reported statutory net profit after tax of $NZ235.4 million ($A217.3 million).

However management suggested normalised net profit, which fell 59.7 per cent to $NZ66.3 million, may be a more accurate representation.

This figure does not include the one-off gain of $NZ337 million SkyCity received from insurers after fire tore through the New Zealand International Convention Centre in October.

The fire forced the casino to close for three days.

The blaze was one of two major blights on SkyCity during the 12 months to June 30, along with the coronavirus pandemic.

Management said the casinos in both countries were trading well prior to COVID-19 restrictions.

The Adelaide and Auckland venues posted the biggest slumps in full-year revenue, about 18 per cent.

There will be no final dividend. This is lower than the 2019 final dividend of 10 NZ cents.

For this financial year, management said there would not be an interim dividend but it aimed to pay a final dividend.

In an update on the current financial year, management said its domestic operations had recovered more quickly than expected.

Gaming activity at Adelaide and Auckland was just about at pre-virus levels, while gaming activity at Hamilton had exceeded those levels.

The opening of an expanded Adelaide venue is due later this year. This will include a hotel and more restaurants and bars.

The expansion was originally planned to open in time for cricket’s Twenty20 World Cup.

Shares rose more than eight per cent during the day’s trading before they eased to finish up 7.36 per cent at $2.48.

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