New Zealand gaming company SkyCity Entertainment Group has announced a 13% improvement on their annual revenue in the 12 months up to June 30. The company, which owns and/or has ownership interest in six casinos in New Zealand and Australia reported earning a net profit of NZ$138.5 million, or around $111.7 million based on current exchange rates. That figure is 12.6% better than the NZ$123 million the company earned a year ago.
Despite the increased revenues, SkyCity’s net revenue still fell short of their target profit that was estimated in the “low NZ$140 millions”, a number that the company actually moved to from their initial estimates in the “high NZ$140 millions”. Nevertheless, the casino company’s increased revenue was still good enough to net a 4% increase in its shares, which as of Tuesday, closed at NZ$3.58.
SkyCity’s presence in New Zealand and Australia has turned it into one of the heavyweight casino operations in the region, particularly in New Zealand, where it holds a monopoly on the industry, having controlled the industry thanks to a ban that prevents new establishments from setting up shop in the country. Likewise, SkyCity also has its claws dug in in Australia, where it competes with Crown and Tabcorp in Adelaide and Darwin.
While SkyCity is reaping the benefits of its increased revenue, one casino in Las Vegas has fallen to despair.
Since 1964, Jerry’s Nugget casino has been a fixture in North Las Vegas. But two years short of its 50th anniversary, the casino has officially filed for Chapter 11 bankruptcy protection.
Given the state of the economy in Nevada these days, it’s hardly surprising that the small, family-owned casino would find it difficult to stay afloat in the market. Presumably, the company’s fortunes weren’t changing the least bit – court filings have shown that the casino has assets and liabilities amount to $10 million each – hence the move to file for bankruptcy protection.
Filing for Chapter 11 will technically allow Jerry’s Nugget to remain in business while a reorganization plan is made. We’re certainly hoping that the casino pulls through and gets its business in order. It would be a pity to see one of the oldest family-owned casinos in Las Vegas close shop because of the unpredictably of the economy.
