Saturday, February 21, 2009

Sky City Entertainment 2009 Interim Result Preamble

Sky City Entertainment [SKC.NZ] is announcing its 2009 interim result on Monday 23 February (view the webcast here NZ Time ) and I for one will be keenly interested in that result.

Sky City is the largest shareholding in the Share Investor Portfolio and indications from the company in October for first quarter revenues for 2009 were up 3% year on year, excluding its high-roller and money losing cinema divisions.

Standout performers in the first quarter were its Darwin and Queenstown properties (both up 7%), but the company’s Auckland casino, where the bulk of revenue is derived, was down 2%.

As this excerpt from a mid 2008 letter to shareholders the focus will be on cutting costs:

"Our shareholders have made it clear to us that they want us to focus on maximising the performance of the assets we operate. This is what we will be doing. as we have said previously, we expect to achieve this within an 18-month time frame. We will retain tight control over capital and not expend capital unless we are very confident of healthy returns for shareholders".

This cost cutting was first apparent in the previous interim result in Feb 2008 and continued through to the 2008 Full Year result in August of the same year.

Clearly if first quarter 2009 revenue has continued into the second quarter and cost cutting has further strengthened then Monday's result will be a good one.

The only two wildcards will be the massive economic slowdown since October and wins/losses from the high rollers, which can alter the result markedly.

For a more extended analysis of what might be see Value Cruncher for Reuters and other analyst's outlooks on revenue and profit margins for Sky City to June 2011.

Sky City shares reached near multi-year lows on Friday 20 Feb closing on overall market weakness.

Sky City Entertainment Ltd Ordinary Shares
As at 6:15 pm, 20 Feb

Sky City @ Share Investor

2008 Sky City profit analysis
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

Share Investor Forum-Discuss this topic

Related Links

SKYCITY will announce the 2009 Interim results on Monday 23rd February 2009.

Please click here to access the media webcast link.

Sky City Financial Data

Related Amazon Reading

The Economics of Casino Gambling

The Economics of Casino Gambling by Douglas M. Walker
Buy new: $64.00 / Used from: $59.37

c Share Investor 2009

No comments:

Post a Comment

Comment on Share Investor Stuff