The money generated by the sale of Sky City’s cinemas could see it take a punt on owning the rest of the Christchurch Casino as it concentrates on its core casino business.

Sky City sold its ill-fated cinema holdings in New Zealand to Australian-based exhibitor Amalgamated Holdings this week, netting $59 million for more than 100 screens around New Zealand and Fiji.

The entertainment group has been paying off debt after raising more than $220 million earlier this year and reported a 13% rise in net profit in August.

At its recent annual meeting, Sky City said it was being careful about capital expenditure and planned to keep its 2010 spend at around the same level as last year, with around $65 million spent on maintenance and $40 million allocated for project expenditure, including a new resort on its Darwin property.

But chief executive Nigel Morrison told NBR the group was still on the lookout for new opportunities for the group and would also be investing in its existing assets.

“We have talked about owning the other half of Christchurch casino and could also be looking at investing in the Auckland and Adelaide properties.”

Sky City currently owns 46% of the Christchurch Casino, with Skyline Enterprises also owning a 46% stake.

Skyline is refusing to comment on any speculation over Sky City buying out its Christchurch share.

Skyline did oppose Sky City’s initial purchase of the 41% stake in 2004 when it acquired Aspinall (NZ) for $93.75 million, concerned over the fact it gave Sky City an interest in five out of the country’s six casinos, but the deal was approved by the Casino Control Authority and the Commerce Commission.

Sky City raised its holding by 5% last year after it sold its stake in the Crowne Plaza Christchurch hotel.

Analysts have highlighted Sky City’s decision to move away from cinema and focus on its core casino business as a positive sign for the future.