SkyCity posts 4.6 pct increase in revenue YTD

New Zealand casino operator SkyCity Entertainment Group on Tuesday reported a 4.6 percent increase in revenue year-to-date, helped by a 2.6 percent increase in domestic revenues.

In its New Zealand properties, its flagship Auckland property performed well in 18Q3, but was impacted by weaker table games performance in the month of April.

Its Hamilton property saw stable performance, with strong non-gaming performance helping to offset slightly weaker gaming activity.

In Australia, increased premium gaming activity helped to improved performance for its Adelaide property. Darwin has also showed signs of stabilization and improved performance since 18H2, it said in a trading update.

SkyCity says it expects to achieve around 3 percent growth in normalized group EBITDA in FY18 year-on-year.

However, in the same filing, the operator also warned that its New Zealand International Convention Centre and Hobson St Hotel development will be delayed, and is now expected to complete in December 2019.

The losses arising from the delay should be mitigated through its construction contracts that provide for liquidated damages.

SkyCity says it does not foresee any budget overruns for the projects.

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