Sky City Entertainment Group Ltd., New Zealand's largest casino operator, said first- half operating profit fell 6.4 percent as margins narrowed at its New Zealand sites, Bloomberg reported.
Profit before interest, tax and depreciation fell to NZ$148.5 million ($76 million) in the six months ended Dec. 31, from NZ$158.7 million a year earlier. Net income rose to NZ$54.8 million, from NZ$1.3 million a year earlier when the company wrote NZ$60 million off the value of its cinemas.
Sky City gets more than 70 percent of its pretax profit from its casino, conference center and tower in Auckland, where earnings fell 5.2 percent as spending slowed amid New Zealand's first recession in a decade. International arrivals through the city's airport fell 1.1 percent in the period.
"The economic environment in New Zealand is challenging," Chief Executive Officer Nigel Morrison said in a statement. The company remains "cautious" about its second-half performance given doubts about how New Zealand and Australia will fare in the global recession and will limit future distributions to help reduce debt, he said.
Sky City shares rose 3 cents, or 1.1 percent, to NZ$2.75 at 10:05 a.m. in Wellington trading.
Profit before interest, tax and depreciation at Auckland fell to NZ$102.1 million in the period, with costs rising as the company worked to increase revenue in the final three months. Hotel occupancy improved.
...