New Zealand’s SkyCity Entertainment Group has reported a 168% increase in net profit after tax to NZ$22.8 million (US$14.5 million) for the six months to 31 December 2022, boosted by a strong rebound in the company’s domestic gaming, hospitality and tourism businesses following the return of international tourism.
Publishing its 1H23 financial results early Wednesday morning (Auckland time), SkyCity also revealed a 59.6% increase in revenue to NZ$462.6 million (US$293 million) and 421% increase in Group EBITDA to NZ$106.3 million (US$67.4 million).
This was largely driven by flagship property SkyCity Auckland, where gaming revenues climbed 166% to NZ$222.4 million (US$141 million), while SkyCity Adelaide saw a 29.3% increase in gaming revenues to AU$91.3 million (US$63.8 million).
“A positive recovery in domestic customer visitation has been the key driver of performance in this half,” said SkyCity CEO Michael Ahearne. “The return of tourism to New Zealand has been a real benefit to SkyCity.
“It is fantastic to welcome international guests back to our properties. We saw the first of many cruise ships coming back to Auckland late last year after a two-year absence with more to come.
“Visitation to the Sky Tower in December 2022 was up six times that of the corresponding period last year, which is a great result for Auckland.”
Despite the positive results, which included a return to a full dividend payment of six cents per share declared by the board, SkyCity acknowledged that regulatory enforcement actions against SkyCity Adelaide still loom large.
The company said civil penalty proceedings launched by Australian financial crimes watchdog AUSTRAC against SkyCity Adelaide in December 2022 could take up to two years to resolve with “considerable work required to complete this process.”
An independent review into the SkyCity Adelaide’s suitability is on hold until AUSTRAC released its own findings.
“SkyCity will continue to cooperate with our regulators and our priority remains on ensuring that our compliance enhancement programmes meet the expectations of our regulators and are embedded deep into the organization,” Ahearne said.
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