NZ's Sky City H1 profit dips as expected

WELLINGTON, Feb 12 (Reuters) - New Zealand casino and gaming company Sky City Entertainment Ltd's SKC.NZ first half profit fell 7.9 percent as a strong New Zealand dollar dented its Australian earnings.

The company, which has four casinos in New Zealand and two in Australia, reported a net profit for the six months to Dec 31 of NZ$61.1 million ($50.83 million)from last year's record NZ$66.3 million.

The normalised profit, which smoothes out tax payments and other costs, was NZ$66.4 million, which compared with guidance of NZ$65 million to NZ$68 million, and NZ$74.4 million a year ago.

It warned in December that an 18 percent rise in the New Zealand dollar against the Aussie had cost it about NZ$3 million.

It said it also felt the loss of earnings after it sold its half share in the Christchurch casino.

The company, which is to build a NZ$400 million convention centre in Auckland and spend A$350 million upgrading its Adelaide casino, said trading in January was stronger and it expected earnings growth across the business in the second half.

It gave no specific full year earnings guidance.

It declared an unchanged interim dividend of 10 cents a share.

($1 = 1.2021 New Zealand dollars)

(Gyles Beckford)

((Gyles.Beckford@thomsonreuters.com)(+64 4 802 7977)(Reuters Messaging: gyles.beckford.reuters.com@reuters.net))

Keywords: SKYCITY EARNINGS/