SkyCity Finances Experience a Decline in Annual Net Profits
SkyCity finances for the 2018-19 financial year paint a challenging picture for the casino and resort company’s performance. The group recently posted its full-year financial results ending on 30 June 2019. SkyCity finances show a 14.7% decline in its annual net profits after tax. The profits dropped from NZ$169.5 million in 2017-18 to NZ$144.6 million this year. This drop comes after the company sold its Darwin Casino and registering a lower win rate.
However, not all looks bad for SkyCity finances: the entertainment company’s normalised profits after tax increased by 1.9%. Additionally, its earnings before interest, tax, deprecation, and amortisation (EBITDA) increased by 1.3%. While the economic environment may be challenging, the group believes it performed as well as it could. SkyCity Entertainment’s CEO Graeme Stephens said the results were solid. Furthermore, he said that SkyCity’s operating results were slightly ahead of preliminary expectations.
SkyCity Finances Not All Bad News
The sale of Darwin Caisno along with a long-term concession over the main car parks in Auckland will add about NZ$450 to SkyCity finances. Stephens says this income stream will repay debt and return some capital to its investors through buybacks.
The SkyCity finances of their Auckland branch saw a record EBITDA which increased by 2.8% compared to the last financial year. However, their two major development projects are experiencing some setbacks and delays. SkyCity recently said in a press release that their New Zealand International Convention Centre (NICC) and Horizon Hotel projects were moving slower than planned. However, they are still hopeful that they will be finished by the end of 2020.
SkyCity finances have made the entertainment group a bit cautious about the outlook for the upcoming fiscal year. This is due to the current difficulties being experienced by the company locally.
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