Sky City on Track for Stronger FY18
By Ben Collins
WELLINGTON--New Zealand-based casino operator Sky City Entertainment Group Limited (SKC.NZ) says it remains on track to achieve modest growth in full-year earnings.
The company on Friday said its after-tax profit for the six months to December 2017 was 11.6% higher than the prior corresponding period at 93.5 million New Zealand dollars (US$67.6 million) after a recovery of its international business, growth from its New Zealand properties and a stable performance from its Australian properties.
The company also said it incurred lower net interest costs because of increased capitalized interest from major projects and a stronger Australian dollar versus the New Zealand dollar.
The company said its earnings before interest, tax, depreciation and amortization, or Ebitda, was 6.8% higher on-year at NZ$180.6 million, while revenue was 4% higher at NZ$554.7 million.
"Based on the financial performance during the interim period, we remain on-track to achieve modest growth in Group Ebitda for FY18 on the previous corresponding period, in line with previous guidance," said Chief Executive Graeme Stephens in a regulatory filing.
Mr. Stephens said he expects growth from the company's New Zealand properties, improved performance from the Australian properties and an ongoing recovery in Sky City's international Business. The growth will be offset by higher corporate costs, he said, as the company continues to invest in technology and returns to a "more normal" period of executive remuneration and incentive payments.
Meanwhile, Mr. Stephens said positive bookings had already been secured for the important Chinese New Year period during February 2018.
Directors declared an interim dividend of 10 New Zealand cents.
Write to Ben Collins at firstname.lastname@example.org
(END) Dow Jones Newswires
February 08, 2018 15:53 ET (20:53 GMT)Copyright (c) 2018 Dow Jones & Company, Inc.