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Sky City's half-year profit up 23%

Sky City Entertainment Group posted a $68.4m normalised half-year net profit this morning – slightly better than analysts predicted.The figure was up 23.0% on last year's half-year result (or almost 30% of its non-normalised profit.)The company's no

Andrea Deuchrass
Tue, 16 Feb 2010

Sky City Entertainment Group posted a $68.4m normalised half-year net profit this morning – slightly better than analysts predicted.

The figure was up 23.0% on last year’s half-year result (or almost 30% of its non-normalised profit.)

The company’s normalised (after adjusting international business to theoretical win rate and for non-recurring items) half-year editda was up 5.7% to $158.3 million.

Revenue of $447 million was up 5.9% on the first half of 2009.

Sky City (NZX: SKC) will make an interim payment of 8.0 cents per share on 1 April 2010, compared to a 9cps payment in the first half of 2009.

While the Australian businesses continued to grow, with revenues up 6% and ebitda up 7%, Auckland revenue and ebitda was flat in a “challenging economic environment,” the company said.

International business turnover was up 18% and the company said in a statement the gain on carrying value from its sale of cinemas was expected to be more than $10 million.

The company expected a normalised full-year net profit up 10% to 15% on last year's $115.3 million.

Forsyth Barr’s result preview forecast $438.1 million revenue, up 3.8% and a $153.6 million ebitda (up 3.4%). Analysts expected net profit to be up 16% to $63.6 million, boosted by lower interest costs due to equity raising in the second half of 2009.

Credit Suisse analysts estimated a $69.6 million net profit, including a $1.9 million gain on the buyback of US private placement debt and ebitda of $160 million.

Half-year results at a glance:
NET PROFIT AFTER TAX: $71m up 29.6% ($68.4m normalised)
REVENUE: $447.0m up 5.9%
EBITDA: $160.1m up 7.8% ($158.3m normalised)
DIVIDEND: 8cps

MORE SOON...

Andrea Deuchrass
Tue, 16 Feb 2010
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Sky City's half-year profit up 23%
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