Sky City Posts Flat Profits

New Zealand casino operator Sky City Entertainment Ltd, which owns or has interests in five of the country’s six casinos and two in Australia, reported a 6 percent dip in net profit in the six months to December, to NZ$67.1 million from $71 million last year.

It said it faced challenges as NZ’s economy had a slow recovery and Australia’s retail softened.

Revenue rose 3 percent to $448 million. There was growth in casinos in Adelaide and Hamilton. Auckland was flat despite its international business division doubling revenue to $1.1 billion due to gamblers from China and Thailand, and the venue in Darwin declined after a smoking ban.

But Star City already indicated a 9 percent rise in second half earnings and expects to make a full year profit of $127.4 million compared with last year’s $129 million profit.

“There are positive trends within our core business operations which will provide momentum going into the second half and through into the Rugby World Cup,” the company said in a statement.