FY18 growth for SKYCITY

SKYCITY Entertainment Group today announced its interim result for the six months to 31 December 2017, which features growth across the company.

Normalised net profit after tax (NPAT) was $90.3 million up 7.9% on the previous corresponding period, normalised earnings before interest, depreciation and amortisation (EBITDA) up 4.1% to $175.8 million and normalised revenue up 3.6% to $545.0 million.

Reported NPAT was up 11.6% to $93.5 million on the previous corresponding period due to a favourable win rate on International Business (1.55%) relative to the theoretical win rate (1.35%). Reported EBITDA was up 6.8% to $180.6 million and reported revenue up 4.0% to $554.7 million.

Mr Stephens says he’s pleased overall with the results. “SKYCITY’s FY18 interim results deliver growth on the prior year and are largely in-line with our expectations and previous market guidance. We continue to make progress on our current strategic initiatives and the significant developments underway in Auckland and Adelaide position the company for earnings growth and creation of shareholder value over the medium-term.

“Despite ongoing disruption from capital works in Auckland and Adelaide and a slightly less favourable New Zealand economic environment, we remain confident we can continue to deliver growth from our existing assets as well as the new projects in the pipeline”, Mr Stephens says.

All of SKYCITY’s properties experienced growth over the period, with the exception of the Darwin property that achieved a stable performance on the previous corresponding period on a like-for-like basis.

The key drivers of the performance were growth from SKYCITY’s combined New Zealand properties, a recovery in International Business, stable performance from the combined Australian properties, a lower net interest expense due to increased capitalised interest from our major growth projects and a stronger A$ vs the NZ$. 

The company’s flagship Auckland business achieved a second record period of earnings growth relative to the previous corresponding period, with increases in both local gaming and non-gaming revenue and its hotels continuing to trade strongly.

SKYCITY’s Adelaide property has returned to growth, with new premium gaming concessions and cost efficiencies helping offset the impact of construction disruption from the early works on the casino expansion project.

SKYCITY Darwin achieved a stable performance. A full (or partial) sale of our interest in the property remains a possibility at the right price. The company recently secured a five-year extension of our exclusive casino licence in Darwin out to 2036.

International Business had a positive half-year, with turnover up 9.4% to $4.8 billion and normalised EBITDA up 87.1% on the previous period to $14 million.

“Based on the financial performance during the interim period, we remain on-track to achieve modest growth in Group EBITDA for FY18, in-line with previous guidance,’’ Mr Stephens said.

Read the full Interim Results announcement here.