12 May 2012

SkyCity issues profit warning

5:34 am on 12 May 2012

Shares in SkyCity Entertainment Group have fallen 4% after the casino operator issued a profit downgrade.

SkyCity expects its full year profit will now be in the "low $140 millions" due to soft trading conditions. In February, the company forecast a profit in the "high $140 millions".

SkyCity says revenue growth at its Adelaide casino has slowed and it expects flat revenues at its Darwin casino.

In New Zealand, the company says, the rise in unemployment will hit discretionary spending but it is confident its Auckland casino will experience single-digit growth in the second half of the year.

However earnings at its Christchurch casino will fall in the second half, compared to the previous year, because of the challenges to Canterbury's economy.

At midday on Friday SkyCity's shares had plunged 17 cents to $3.73 each.