|New Zealand based company Sky City Entertainment have recorded a reduced profit figure compared to last year, when they released their financials for the 12 month period ending in June. The profits have dropped by 6.1percent – the 2003/4 figure being NZ$ 100.2 million, and the 2002/3 figure standing at NZ$107.5 million. |
The figures have been greatly affected by the company’s write off of its stake in the Austrlaian online gambling company Canbet. This write off cost the firm NZ$20.1 million, and has significantly impacted upon these recently released figures.
Analysts of the company’s activities. Called the purchase of Canbet a disaster for Sky City, and also noted that other Australian ventures in Darwin and Adelaide had also been disappointing, with no returns being made, other than covering the cost of the initial capital investment. While the company’s Auckland casino remains a strong source of revenue for the company, the recent acquisitions made by the company have been questioned by observers.
Matt Willis of ABN Amro Craigs, commented of the company “I don’t think anyone could argue with the quality of their core business”, but having said that the Canbet purchase was an “official disaster” went on to claim that the recent acquisitions strategy of the company was damaging their reputation, “It’s like it’s being perceived as too aggressive” he said.