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SkyCity reports modest profit gain

NZ Newswire logoNZ Newswire 8/08/2017 Rebecca Howard
SkyCity. © Brendon O'Hagan / Bloomberg SkyCity.

Casino and hotel group SkyCity Entertainment has posted a small gain in normalised full-year profit on modest growth in New Zealand.

Normalised net profit rose 1.3 per cent to $154.6 million in the year ended June 30, the Auckland-based company said on Wednesday.

The result is slightly lower than analysts were expecting.

Normalised earnings before interest, taxes, depreciation and amortisation were down 2.6 per cent to $321.5m while normalised revenue was down 4.9 per cent to $1.03 billion.

Reported net profit fell 69 per cent to $44.9m, mainly on an $A95m ($NZ103m) impairment of Darwin goodwill following an annual impairment review.

SkyCity declared a final dividend of 10 cents per share, payable on September 15, resulting in a total full year dividend of 20 cents per share.

The company said it expects group ebitda to "grow modestly" in the current financial year compared to the prior year. Key drivers are expected to be growth from its New Zealand businesses and a recovery in the international business, offset by further weakness in Darwin.

SkyCity shares closed on Tuesday at $4.10 and have declined 16.5 per cent in the past 12 months.

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