Forum Archive Index - July 2001

["Ben Dutton" <bendutton@sharechat.co.nz>]

Excellent post and observations claudius - thanks for taking the time to
share them with other chatters.

Best Regards

Ben Dutton

----- Original Message -----
From: "i_claudius" <i_claudius@xtra.co.nz>
To: <sharechat@sharechat.co.nz>
Sent: Monday, July 09, 2001 6:57 AM
Subject: [sharechat] Sky City Adelaide


> This may be of interest to SKC investors.
> I've just returned from a week in Adelaide having decided there's no
> substitute for first hand observation and because it's too bloody cold
here.
> It's important to understand that Adelaide is just a big farming town.Very
> much like Christchurch but on a more populous scale.Resident behaviours
and
> mores reflect this.Most NZers other than those from Auckalofa perhaps
would
> feel very much at home there.
>
> PHYSICALITY
> The casino is located in the town centre within the main railstation
> building.Spread across 2 floors,the lower is the main table gaming area
with
> sole access from an attractive lobby.The railway concourse is below this
and
> well insulated from any noise.The upper floor is accessed by a central
> escalator and contains a large area of pokie machines,3 restaurants(buffet
> $27,cafe approx $12,traditional dining approx $25 mains) and a "high
roller"
> gaming room.Several bars and plenty of sit down areas.This upper floor is
> very tired looking and sedate compared with the lower floor.No gaming
tables
> here among the pokies.The restaurants are very good both invalue and
quality
> of food.The buffet is closed Mon & Tues.
> The lower gaming floor has a large bar area,about 50 gaming tables and a
> small number of pokie machines.Games offered include all the usual
> suspects-blackjack,roulette,carribbean poker,baccarrat etc but no
> pontoon.Lucky 7's and Madness as in Auckland.This floor is brightly lit
and
> the SKC capex spend is quite obvious compared to the upper floor.However
it
> still has the feel of a modernised upgrade conclave within an old
> building.Traditional chandeliers have been replaced with glassy aluminium
> designs & lighting effects.Layout makes good use of the space.
>
> OPERATIONS & PATRONAGE
> I was surprised that the casino did not run 24 hours.It operates from 10am
> to 4am Sun to Thurs and until 6am on Fri & Sat.The staff were
exceptionally
> friendly and very smartly presented.There were plenty of $5 & $10 stake
> tables indicating a focus on "joe ordinary punter" and maybe a reflection
> clientele in general.Punters were interesting....very mixed age set.Plenty
> of the blue rinse set although few younger ones on the upper floor.A
> relatively small number of Asian punters.Less than I have seen at any
other
> Australasian casino.Table drinks service was excellent ,very timely and
good
> value($1 coffee/choc/fizzies).Dress code is relaxed but most patrons were
> smart casual across all ages.It doesn't appear to be the social focus
centre
> for 20 somethings like other casinos although there were many there.Even
on
> the busy Fri & Sat nights it was not overcrowded.The only night I saw it
> running at full capacity was the Sat night with 2/3rds the max at any
other
> time and about 1/2 capacity most nights.Daytime is quiet until late
> afternoon.A lot of effort is made bus tripping the oldies in to the
> restaurants(and hopefully onto the pokies,I presume).
> Whilst turnover looked reasonable,I didn't see large amounts of $ going in
> the table slots compared to Auckland or the Crown,say.Much more
conservative
> gamblers in Adelaide."High roller room" didn't seem busy.
>
> CHANGES & POTENTIAL
> The staff and patrons were generally very pleased with the changes SKC is
> making.The staff are positive and upbeat.They're a little chagrined about
> being owned by a Kiwi company but they like the improvements it has
> brought.They confirm increased patronage and more young people(bigger
> spenders) now the lower floor revamp is complete.Lots more room available
> but not the patronage yet to utilise it.
> One interesting thing I experienced was being interviewed by a patron
survey
> group (New Focus).This lady took me through a 15 minute structured
> questionaire about my rating of appearance,table stakes,smoking
> areas,drinks,entertainment,staff service,bars,restaurants etc etc.She and
2
> colleagues were there all day every day surveying patrons.This said to me
> that management are very conscious of the need for further change and that
> they are doing the right spadework before implementing it.Good stuff.
>
> My overall impression was that its on the improve.Lots of potential here
but
> it'll never be as dominant as Auckland or the Crown as an entertainment
> option in Adelaide.Without being a purpose built facility,its always going
> to look like that Chinese restaurant fitted into an old office
> building.Financially though,its numbers have considerable upside and SKC
can
> do very well from it.
>
> Finally....Yes,I did make a contribution to their takings.Adelaide is a
> richer place for my passing.Those of you who saw SKC's price spike last
week
> can rest assured our efficient market priced in my performance in
Adelaide.
>
> This is a long post and I've left a lot of detail out.Anyone interested in
> further specifics is welcome to email me.
> DISCL:Long
>
>
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