Smoking Ban Hits SkyCity's Profits

NEW ZEALAND – As reported by the Advertiser: "Smoking bans and refurbishing delays at its Adelaide Casino hit SkyCity's profits in the past financial year, the company said yesterday.

"However, the New Zealand-based company hopes the recently opened $21 million redevelopment will turn its profit results around.

"SkyCity yesterday revealed a 4 per cent rise in 2004-05 full-year net profit to $NZ104 million.

"…However, revenue at the Adelaide operation fell 2 per cent to $A108 million. Gaming revenue was down 2 per cent at $97 million while food and beverage revenue was up 1 per cent at $11 million.

"Earnings before interest, tax, depreciation and amortisation as a proportion of revenue fell from 23 per cent to 17 per cent, as expenses increased 6 per cent.

"…The impact of non-smoking legislation in NZ had been 'greater than originally anticipated'…"