Sky City year profit down 18 per cent

New Zealand's largest casino operator Sky City Entertainment Group Ltd reported on Monday a 18 per cent fall in annual profit in line with expectations.

Sky City made a net profit of $98.4 million in the year ended June 30, compared with a $120.1 million profit the year before.

The company said in May that it was comfortable with analysts' estimates for an annual profit around $98 million.

It declared a dividend of 12 cents per share, compared with 14 cents per share last year.

Shares in Sky City closed on Friday at $4.20 having fallen 16.7 per cent so far this year, compared with a 4 per cent fall for the benchmark NZSX-50 index.

Sky City owns or has an interest in four casinos and a cinema chain in New Zealand, where a ban on new casinos has given it a virtual monopoly.

It also has casinos in Adelaide and Darwin in Australia, where it competes with Tabcorp and Publish and Broadcasting Ltd.

In June, managing director Evan Davies abruptly quit, as the company restructured to restore growth. The month before it said it would cut $33 million in costs over 18 months and might sell poorly performing assets, such as the Adelaide and Christchurch casinos and its cinema business.

- Reuters