Sky City lifts Q1 sales by 1%

The company's revenue from Auckland, where it operates its casino, hotel, conference centre and Sky Tower complex, fell 2% as a shrinking economy sapped the spending power of potential punters. Sales growth stalled at Sky City's Adelaide casino and jumped 7% in Darwin, the company told shareholders at their annual meeting today.

"Australia is in a growth phase and the results of the Australian operations have been pleasing," Chairman Rod McGeoch said. "The New Zealand economy is in recession with trading conditions far more challenging," he said.

In August, Sky City reported a 49% slump in annual profit after it wrote down the value of its cinema unit by $60 million and deferred new spending on its Adelaide casino as chief executive Nigel Morrison reined in costs.

Morrison today said the focus for 2009 is to control capital spending while pressing on with its development in Darwin.

The company's shares rose 1.3% to $3.24 and are down about 30% this year.

By Jonathan Underhill

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