A rebound in business following Covid-19 restrictions is expected to generate a full-year profit for casino company SkyCity Entertainment.
He said trade picked up better than expected as his properties reopened, leading to a return of local commerce and signs of picking up tourist traffic.
“Following stronger-than-expected recent trading and growing certainty around its full-year result, it is now able to provide full-year earnings guidance,” the company said in a statement to NZX.
“Following the recent easing of Covid-19 operating restrictions, SkyCity saw strong performance from its local gaming business, particularly in New Zealand.”
He said that assuming no material changes to the current environment, he expects annual operating profit to be between $135 million and $140 million, with normalized after-tax profit between 3.5 and $7 million for the fiscal year ending June.
The forecast is a sharp turnaround from its normalized loss of $19.5 million for the six months ended December. Last year, it reported a 12-month profit of $90 million.
SkyCity operates four casinos in New Zealand and one in Adelaide. It also has a hotel next to the Auckland Casino and an online casino based in Malta.
“SkyCity’s non-gaming business continues to recover, benefiting from positive domestic tourism, particularly during weekends and holiday periods, and the reopening of international borders.”