Sky City forecast trumps previous outlook

Sky City, the Australasian casino operator, is expecting net profit for the year to exceed previous expectations by around 9% in the year to June 30.

In updated earnings guidance this morning, Sky City said it was now forecasting net profit after tax of between $113 million and $116 million, compared with a guidance of range of $99 million to $106 million given in April, at the time of the company's last capital-raising.

Sky City shares rose 7% to $3.06 on strong volumes immediately after the announcement.

The improved result was a product of better-than-expected fourth quarter revenues across its core casino operations in Auckland, Adelaide and Darwin. Underlying and reported earnings (EBITDA) is now forecast to be approximately $300 million for the 2008-09 financial year.

The April equity-raising was over-subscribed and this had lower funding costs in the fourth quarter.

Businesswire.co.nz

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