A $60 million write-down in Sky City Entertainment Group's cinema business has caused its net annual profit to almost halve.
With the write-down included, the casino and movie operator made $49.9 million in the year ending June, compared to $98.4 million a year ago.
The group's cinema business has struggled recently, with earnings down by 2% to $66 million.
However, chief executive Nigel Morrison says he expects to turnaround the movie operation.
He says Sky City will introduce new Bollywood and Cantonese movies to attract more customers, and he does not expect the business to be badly impacted by the recession.
When excluding the cinema write-down, the group's net annual profit rose 19% to $11.9 million due to a strong performance by its Darwin casino and increased earnings from international high rollers.
The result is in line with the group's forecast range between $108 - $110 million.
Overall, flat revenue was flat. The group says it plans to focus on transforming the Auckland casino into gaming growth.
No guidance is being given for the following year at this point.
