Adelaide Casino Reports Revenue Boost for H1
New Zealand-based casino operator, SkyCity Entertainment Group has reported a significant turnaround in the performance of its Adelaide Casino. The underperforming Australian casino has reported an 18.7 percent rise in normalised revenue to AU$103.6 million for the first half of the financial year.
The improvement was largely attributed to an influx of Asian high-rollers who visited the casino, pushing their International Business (IB) turnover up 146 percent to AU$1.9 billion. The addition of two top restaurants is also believed to have contributed to the increase, according to a spokesperson for SkyCity. The restaurants include Sean’s Kitchen, run by well-known chef, Sean Connolly and Madame Hanoi.
The casino had experienced a few slow years as it struggled through staffing restructures and refurbishments. It is now looking ahead to a $300 million expansion with the development approved by the Development Assessment Commission last month.
Local gaming revenue was down four percent, in line with the broader trend for Adelaide; however the results from Adelaide Casino were a major contributor for SkyCity’s strong group results during this period.
Darwin Casino reported increased revenue of 2.6 percent to AUS $75 million and an increase in IB turnover of close to 70 percent. SkyCity is currently discussing more flight options from Asia to Darwin as CEO Nigel Morrison says that while the proximity of Darwin to major Southeast Asian cities is good, “the airlift is the challenge”.
SkyCity operates four casinos in New Zealand and reported profit of NZ$71 million in the first half of the financial year as their revenue increased 14 percent to $566 million. Their overall IB (primarily from Asia) was up 51 percent to $7.2 billion and its flagship Auckland property reported a 7.4 percent increase in normalised revenue to $325 million.
April 16, 2017