Skyline profit slips $4 million

23:57, Aug 14 2013

Skyline Enterprises has reported an annual net profit of $16.6 million down from $20.3m, hit by written off goodwill related to the acquisition of Christchurch Casinos.

Late last year Skyline Enterprises announced it had bought the half of Christchurch Casino it did not already own for $80m from co-owner SkyCity Entertainment.

The tourism and casino-based company today announced a profit before tax of $34.7m for the year to March 31, up from $29m in the 2012 financial year.

After taking into account a property revaluation of $0.7m, goodwill written off of $11.3m and tax of $7.5m the profit to shareholders was $16.6m.

The Queenstown-based group declared a dividend of 37c a share, up from 34c in the previous financial year.

Skyline chairman Ken Matthews said in a statement that patronage at the Christchurch Casino had not been restored to pre-earthquake levels although the trend was improving.

"Dining numbers in the Grand Cafe are on the increase and the extent of new commercial activity along Victoria St is an encouraging sign as the inner city moves into rebuild mode," Matthews said.

"A resource consent to establish a functions facility within the casino's ground-level parking has been granted by council and it is anticipated that construction will be able to commence in October once a building consent has been issued."

In Queenstown, the Skyline gondola properties had experienced strong trading conditions throughout the year with gondola numbers just reaching an all-time high. Total revenue from all sources increased by 15 per cent over the preceding year with dining and luge activity in particular helping.

Matthews said there was finally momentum on the establishment of a new luge operation at the Canada Olympic Park in Alberta. "After some frustrating delays the luge at Calgary in Alberta is finally open ...

"Numerous issues pertaining to the site and unrelated to the luge development thwarted any attempt at an earlier opening."

A planning application for an already announced luge to be built in the South Korean coastal city of Tongyeong was proving to "be quite arduous and it is becoming clear that the process will take longer than anticipated".


The Press