New Zealand's SkyCity downgrades outlook as profit plumets
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The news: Casino operator SkyCity Entertainment downgraded its outlook as it reported a 73.1% decline in net profit after tax for the six months to 31 December, blaming ongoing “challenging market conditions" with subdued consumer confidence.
The company revised its full-year underlying group EBITDA guidance to a range between NZD225 million and NZD245 million, down from the previous range of between $245 million and $265 million.
It did not declare an interim dividend.
The context: The company cited ongoing challenging market conditions and subdued consumer confidence. Auckland gaming revenue declined 12%, partly due to a five-day closure.
The numbers: After-tax net profit fell to NZD6.1 million from NZD22.5 million the previous year. Underlying net profit dropped 41.5% to NZD37.8 million.
Revenue from continuing operations declined 5.2% to NZD422 million, while group EBITDA was down 22% to NZD113.1 million.
The source: SkyCity release
