Photo: Supplied / SkyCity
Casino operator SkyCity Entertainment has reported a drop in first half revenue and profit as it grapples with a myriad of regulatory compliance issues on both sides of the Tasman.
Key numbers for the six months ended December compared with a year ago:
- Net profit $22.5m vs $22.8m
- Revenue $445.2m vs $462.6m
- Underlying profit $101.0m vs $106.3m
- Interim dividend 5.25 cents a share vs 6 cps
Chief executive Michael Ahearne, who will step down from the role on 8 March, said the result reflected a challenging economic period, particularly in domestic electronic gaming machine revenue.
"Pleasingly, our hospitality business and table games in Auckland have performed well," he said.
"However, we are also seeing ongoing cost inflation in addition to our further investment in compliance activities."
The company has agreed to pay a civil penalty and associated costs of about $75m to AUSTRAC in respect of money laundering breaches, and also expected to pay up to $8m to New Zealand authorities over similar breaches, which were not paid out in the first-half result.
However, SkyCity is still under investigation regarding its casino licence at its Adelaide casino and host responsibilities at Auckland casino.
Ahearne said the company balance sheet remained robust, with provisions set aside to cover the penalties.
"We have a lot to look forward to over the next year," he said, referring to the opening of the Horizon Hotel in April and forward bookings for the International Convention Centre which was expected to be operational in 2025.
He also confirmed previous underlying full year guidance for a net profit of between $125m and $135m.
Chief financial officer Callum Mallett will take over as interim chief executive from 9 March, while SkyCity chair Julian Cook will provide executive support on a part-time fixed-term basis from 26 February, until a new chief executive is appointed.
