The SkyCity Entertainment Group for Australia and New Zealand’s casinos are filled with enthusiasm since the high roller Asian whales have returned to play in the past months. The slump in participation from this group was very keenly felt and the overall fall in business which lasted for more than a year is well on its way to recovery.
How the Whales Helped Out
This past Thursday SkyCity released its financial results for the past year, and things are on the up. Total revenue increased y 4% NZ$554.7 (US$400.2m) for the past six months, while net income generated was much better growing a total of 11% or NZ$93.5m. The reasons for the increase the company states include the nominal increases in their New Zealand holdings, the less volatile behavior within the Australian market with respect to their casinos and finally a growth in a sector that they refer to as International Business. But what everyone else really knows means the return of the Asain VIP high rollers or rather the whales to Austalia.
The total turnover rate for the International Business factor of the SkyCity group rose by 9.4% in the past year, this meant that the group attributed a total of NZ$4.8b solely to the increased interests of the high rollers from Asia and other foreign countries. However, to make things even more favorable, the International Business earnings also rose by a total of 87% or a cool NZ$14m due to the number of wins earned by these players climbing to 155%.
SkyCity says the main factors that the company used to propel this turnaround was through the use of junkets and by focusing on the vital customers on a more personalized level. This strategy was obviously successful as junkets counted for a total of 50% of the revenue attributed to International Business, this is much better than previous years earnings where junkets only attributed 40% of the total revenue stream.
As one can imagine the huge success in the past six months has sparked huge enthusiasm for the next coming year over the potential earnings of the group as the months roll by. In response the SkyCity group CEO Graeme Stephens was slow to provide agreement, however, did concur with the general consensus and went on to say that if the International Business sector was still a good factor within the casinos the company would very likely hit their FY18 goals. Well, here’s hoping that the Asain whales continue to visit Australia and New Zealand.