Australasian IR operator SKYCITY Entertainment Group saw its net profit rise 10.4% to NZ$169.9 million in the 12 months ended 30 June 2018, driven by the rapid recovery of the company’s VIP sector in the 12 months since the arrests of 19 Crown Resorts employees in mainland China sent regional VIP into freefall.
VIP turnover in FY18 grew 39.2% year-on-year to NZ$11.9 billion, including a 76% increase in turnover to NZ$7.5 billion in the six months to 30 June 2018. Normalized VIP revenue for the year grew 39.2% to AU$160.3 million.
With the premium segment guiding the way, group-wide revenue across all segments increased by a combined 7.3% to NZ$1.1 billion.
Normalized EBITDA was NZ$338.2m, up 5.5% on the previous year.
“I’m really pleased with SKYCITY’s FY18 full-year result, which delivered a record year for the company both in terms of operating earnings and net profit,” said CEO Graeme Stephens.
“I’m particularly encouraged by both the strong rebound in our International Business and a return to earnings growth in Adelaide and Darwin on a like-for-like basis.’’
Stephens said the strong results in SKYCITY’s international VIP business reflected both the recovery of the sector across Asia-Pacific and the performance of the company’s restructured International Business team.
“Set alongside the continued growth of our flagship Auckland property on a record previous corresponding period and a solid result from our Hamilton site, the group’s performance provides us with confidence that we can continue to deliver on our key strategic initiatives and major projects over the coming year,” he said.
Inside Asian Gaming revealed in our August edition that the Australian VIP market was expected to complete its recovery from the arrests of Crown employees in October 2016, which saw VIP turnover Australia-wide fall from around AU$60 billion in 1H16 to just AU$33 billion early last year.
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