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- Release Date: 11/05/12 11:01
- Summary: FORECAST: SKC: SKYCITY Updates FY12 Guidance
- Price Sensitive: No
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SKC
11/05/2012 09:01
FORECAST
REL: 0901 HRS Sky City Entertainment Group Limited (NS)
FORECAST: SKC: SKYCITY Updates FY12 Guidance
Please find below a media release with regard to SKYCITY Entertainment Group
Limited's FY12 Guidance update.
SKYCITY Entertainment Group Limited advises that it is revising its
normalised Net Profit after Tax guidance for the year ended 30 June 2012 to
be in the "low $140 millions".
SKYCITY Chief Executive, Nigel Morrison stated "At our Annual Meeting in
November 2011, we provided guidance that we expected normalised Net Profit
After Tax for the year to be 'in the $140 millions'. In February 2012,
following a strong first half buoyed by good growth in Adelaide and Auckland
and generally across the Group, we firmed our guidance to the 'high $140
millions'.
Since that time, we have experienced some softening in trading conditions,
particularly in Adelaide. There is no doubt the retail environment in
Australia at this time is challenging and particularly so in South Australia.
This was recognised by the Reserve Bank of Australia's recent decision to
reduce interest rates by 50 basis points to 3.75%. Revenue growth in our
Adelaide property has slowed, the NZD/AUD exchange rate has firmed and
accordingly EBITDA in the second half is now anticipated to be down on the
prior period.
In relation to our Darwin property, we anticipated that growth would be more
significant in the second half than is now likely to be the case. We now
expect our second half EBITDA for our Darwin property to be broadly flat on
PCP.
While the New Zealand economy continues to show some signs of recovery, the
pace of that recovery is somewhat slower than we would have hoped for. The
rate of unemployment in New Zealand recently increased from 6.4% to 6.7%
which is disappointing and is likely to be one of the causes of more cautious
discretionary consumer spending.
Nevertheless, we are confident that our Auckland property will achieve high
single-digit EBITDA growth in this second half against the prior year,
underpinned by continued strong growth in our International Business in
Auckland and returns on our recent $50m capital investment programme.
Our Hamilton and Queenstown properties maintain good growth. However,
Christchurch will not meet the same earnings in this second half as in the
prior period, due to the challenges in that local economy.
Accordingly, we are revising our guidance provided in February 2012, to now
being "in the low $140 millions". This is up from $130.9 million in FY11.
SKYCITY will release its Full Year 2012 Results on 15 August 2012.
End CA:00222761 For:SKC Type:FORECAST Time:2012-05-11 09:01:04
