Share Investor: Sky City Entertainment Group

Showing posts with label Sky City Entertainment Group. Show all posts

Thursday, August 19, 2010

Sky City Entertainment Group: Australian Acquisition on the Cards?

Tuesday, August 17, 2010

Sky City Entertainment Group Ltd: 2010 Full Year Profit Analysis

The 2010 Sky City Entertainment Group Ltd [SKC.NZ] 2010 full year profit out this morning was no surprise to the market.

It is a record profit for the company.

When compared to the $115 million 2009 full year result, the 2010 net profit of $141.725 million (Net profit is down 13% on 2009 due to Govt tax changes. This is merely a one-off balance sheet entry)is up by more than 22% on slightly higher revenue of $837,855 million, that is down 1 % on 2009.

Key Points from the 2010 Result

1. Record net profit of $141.725 million (Net profit is down 13% on 2009 due to Govt tax changes.)

2. Total revenue down by 1% to $837,855 million. (Cinema revenue excluded from part of the year)

3. Dividend up by more than 40% to 9.25c vs 2009 6.5c.

4. Uncertain 2011 outlook.

5. Reliance on Australian casinos for future revenue growth.

6. Just over $10 million of profit from the gain from disposal of cinema assets.

Cost savings through paying down debt and other business costs savings continue to be a major factor in the improved bottomline and the proceeds of the sale of their cinema business which was $10.3 million went million straight to the bottom-line.

Overall revenue is sadly still stagnant and at the main profit maker, the Auckland Casino, revenue is down by more than 2% but Sky City's two hotels in Auckland had gained significant market share during the past two years with hotel revenue up, against the overall market trend.

It should be noted that alot of the increased profit has already been wrung out so 2011 is going to be a struggle.

Its Australian casino assets in Darwin and Adelaide have continued to trade well and the currency swap from revenue exported to head office in Auckland has given SKC a good boost.

The key part of today's announcement is surely the indication by CEO Nigel Morrison that the company sees more uncertainty ahead and it will be hard to see SKC beating the 2010 result come this time in 2011 but Morrison seems to be reasonably positive about the next 12 months:

"However, we expect to continue to deliver improved returns as the economy recovers."

As he said in my interview with him earlier this year, he expected double figure profit growth again in 2011.

I cant see it.

9 out of 10.

Disclosure: I own SKC shares in the Share Investor Portfolio

2010 Profit in Detail

Sky City Results Presentation
View Webcast of Result Presentation

Sky City Entertainment Group @ Share Investor

Sky City Entertainment Group 2010 Full Year Profit Preview
Chart of the Week: Sky City Entertainment Group Ltd
Share Investor discusses Convention Centre proposal with CEO Nigel Morrison
Share Investor Q & A: Sky City CEO, Nigel Morrison
Sky City Entertainment: CEO Nigel Morrison discusses 2010 HY
Sky City Convention Centre Expansion a Money Loser: Part Two
Sky City Convention Centre Expansion a Money loser
Sky City Entertainment Group Ltd: Download full Company analysis
Sky City 2010 full year profit looking good
Long Term View: Sky City Entertainment Group Ltd
Sky City Entertainment: CEO Nigel Morrison discusses 2010 Half Year
Sky City Entertainment Group 2010 Interim Profit Review
Sky City to focus on Gaming
Sky City debts levels now more manageable
Insider Trading on Sky City shares
Sky City Profit Upgrade: Always on the Cards
Sky City's Current Cinema "Boom" a Horror Story in Disguise
Stock of the Week: Sky City Entertainment Group
Are Insiders selling Sky City Stock?
Sky City Entertainment 2009 Interim Result Preamble
2008 Sky City profit analysis
Sky City share offer confusing and unfair for smaller shareholders
Sky City Entertainment 2008 Full Year profit results , NZX release, 2008 full year presentation, result briefing webcast, financial statements
Sky City 2008 profit preamble
Sky City outlines a clear future plan
As recession bites Sky City bites back
Sky City Assets: Buy, sell and hold
Why did you buy that stock? [Sky City Entertainment]
Sky City Share Volumes set tongues wagging
Sky City half year exceptional on cost cutting
NZX Press release: Sky City profit to HY end Dec 2007
Sky City Cinemas no Blockbuster
Sky City Entertainment share price drop
New Broom set to sweep
Sky City Management: Blind, deaf and numb
Sky City sale could be off
Opposition to takeover
Premium for control
Sky City receives takeover bid
Sky City Casino Full Year Profit to June 30 2007
Setting the record straight
Sky City CEO resigns
Sky City Casino: Under performing
Sky City Casino 2007 HY Profit(analysis)
Sky City Casino 2007 HY Profit

Discuss SKC @ Share Investor Forum

Download SKC Company Reports

From Fishpond.co.nz

Buy Bird on a Wire: The Inside Story from a Straight Talking CEO & more @ Fishpond.co.nz

c Share Investor 2010

Monday, August 2, 2010

Chart of the Week: Sky City Entertainment Group Ltd

The rise of the Sky City Entertainment Group Ltd [SKC.NZ] share price over the last month (see 1 month SKC chart above) by just over 5% is a move this stock has always made before its August full year result. On good news insiders have pumped up the share price and the inverse is also the case.

I am a shareholder and was hoping to pick up some more as the stock seemed to lose support and start to test levels of around $2.50 last seen in late 2009 (see two year SKC chart below).

As the SKC price history chart shows (see full share price data below - adjusted for share splits & other relevant data) the current share price is close to that of the share price it traded at in 2002 when profit levels were lower than they are currently and prospects for growth were looking poor and have indeed been flat for the last 6 of 8 years.

My point?

If you are looking at this stock for a short term gain things look promising for a good rise from here (depending on overall market sentiment) and longer term investors should look for possible shareprice weakness after the August 17 release of the 2010 full year result for an opportunity to buy.

The dividend for the fully year will be more than 7.5c per share, more than 10% more than last years result and possibly one impetus for the increase in share price.