Sky City Results in Line, No Change to Favourable Outlook

Skycity Entertainment's first-half fiscal 2014 results came out in line with guidance provided in December. Underlying net profit after tax, or NPAT, was NZD 66.4 million, within the guidance of NZD 65 to NZD 68 million and compares with NZD 72 million posted in the previous corresponding period. The negative impact of the significant rise in the New Zealand dollar versus the Australian dollar was NZD 2.4 million. The rest of the decline was due to lower earnings from Hamilton and the Australian casinos. We increase our fiscal 2014 forecast slightly to NZD 132 million, reflecting lower depreciation costs but keep our fiscal 2015 estimate intact at NZD 148 million. Our fair value estimate remains unchanged at NZD 4.60 per share as we have not changed our long-term projections.