Casino operator SkyCity Entertainment Group reported revenue of NZD1 billion ($656.6m) for its fiscal year, up 8.7% from NZD902 million ($591.9m) the previous year, thanks to more Asian VIP customers visiting New Zealand.
SkyCity’s international VIP business delivered a 42% increase in turnover to $9.3b in the year ending June 30. Normalized earnings before interest, tax, depreciation and amortization (EBITDA) were up 35.1% to NZD26.4 million ($17.3m) while normalized revenue jumped 42.6% to NZD125.6 million ($82.3m).
Net profit rose 31% to NZD128.7 million ($84.6m), significantly exceeding last year’s NZD98.5 million ($64.6m).
“Growth in International Business turnover continues to be underpinned by the success of the expanded sales and marketing team, increased recognition of the ‘Horizon’ brand and offering, a strong focus on direct relationships with VIP customers and continued growth in the number of Asian VIP customers visiting New Zealand,” said SkyCity.
While gaming had particularly strong growth at SkyCity Auckland, the Adelaide casino’s performance was hampered by refurbishment works completed in January, and thus reported only modest revenue growth of 4.8% to NZD174.1 million ($114m).
Auckland revenue increased 13% and normalized EBITDA gaining about 14% increase to $247.8m. ($162.5m).
SkyCity Auckland is also expected to benefit from the New Zealand International Convention Centre (NZICC) gaming concessions, which are set to start by the end of 2015.
SkyCity Hamilton posted a 4.5% revenue gain to NZD50.6m, while the combined Queenstown operations had normalised revenue growth of 34.6% to NZD18.3m. SkyCity Darwin recorded EBITDA growth of 7.2% on what it said was flat local revenue “in a challenging market.”
Nigel Morrision, SkyCity chief executive, said he was pleased by the strong and sustained momentum across the core businesses.
