Skycity Entertainment Group

Skycity Entertainment Group Limited
Public
Traded as ASX: SKC, NZX: SKC
Industry Casinos and Hotels
Founded 1996; 20 years ago
Headquarters New Zealand
Key people
 Nigel Morrison (CEO)
Alistair Ryan (CFO)
Products Casinos and Hotels
Website www.skycity.co.nz

Skycity Entertainment Group is a New Zealand corporation whose core business is owning and operating casinos in Australasia. It is the smallest of four major players operating in the market.[1] The company's shares are traded on both the Australian and New Zealand Stock Exchanges, and 2007 net profits are expected to be around NZ$100 million, with the 2006 December half year having operating revenues of NZ$ 419.2 million.[2][3] The present CEO of Skycity is Nigel Morrison.[4]

The group came into existence in 1996 when the company was established as the owner of the Skycity Auckland complex. In 1998 it took over the operations from the previous gaming operator Harrah's Entertainment.[5]

Skycity casinos often depend to a large degree on several hundred high-stakes gamblers, often from East Asia, who may gamble hundreds of thousands of dollars in one visit to a casino.[2]

History

Since opening its original Auckland casino on 2 February 1996, Skycity has expanded its operations to several New Zealand and Australian cities.

In June 2000, it bought the Adelaide Casino. It added another casino to its portfolio when it opened Skycity Queenstown in the alpine resort of Queenstown. In July 2004 it bought the Darwin Casino and Hotel from MGM Mirage and rebranded it as Skycity Darwin. Then in June 2004 it acquired a 40.5% holding in the Christchurch Casino when it bought Aspinal Limited.

On April 7 2016, it was announced by the company that longtime CEO Nigel Morrison would be stepping down as managing director and chief executive effective April 29. The SkyCity board has appointed John Mortensen, Chief Operating Officer of the company's New Zealand Operations, as interim chief executive pending a global search for new chief executive.[6]

Casinos

The Skycity group owns five casinos in Australia and New Zealand. In 2012-13, these properties made $859,549NZD in revenue, including $666,684 from gaming. The majority of gaming revenue (90%) came from "local" rather than international clients.[7]

Adelaide

Skycity Adelaide, formerly the Adelaide Casino, was bought by Skycity Entertainment Group in June 2000 and officially became the Skycity in April 2001. It has 90 gaming tables and 990 gaming machines. It has the only table gaming licence issued out by the South Australian Government, giving it a monopoly over the gambling business in the state

Auckland

Skycity Auckland is New Zealand's largest casino. Located in Central Auckland, it provides table and slot machine gaming, with 1647 gaming machines and 110 gaming tables. The facility includes the 328 metre tall Sky Tower, two hotels, convention centre, a 700-seat theatre, and 18 restaurants and bars with regular live bands, DJs and other entertainment. It opened on 2 February 1996. By 2017 it will also house a convention centre catering for up to 3500 guests, costing $402 million.[8]

Darwin

Skycity Darwin, formerly known as the MGM Grand Darwin, is the only casino in Darwin, the capital of the Northern Territory, Australia. Skycity Entertainment Group bought the casino, which includes a 5 star hotel from MGM Mirage, on 23 June 2004 for $140 million US. Skycity Darwin houses 700 gaming machines and 40 gaming tables.

Hamilton

Skycity Hamilton is a casino in Hamilton, New Zealand, that opened in September 2002. It has 339 gaming machines and 23 tables, a restaurant and a bar, with live music and other performers on Friday and Saturday nights. It is part of the Riverside Centre on the Waikato River, which includes bars, restaurants and ten-pin bowling all operated under the Skycity company.

Queenstown

Skycity Queenstown opened in December 2000. It has 160 gaming machines and 18 gaming tables.

Hotels

Auckland

Skycity Hotel, Auckland is a four-star casino hotel and was opened in February 1996. It is one of New Zealands busiest hotels and is located inside the main Auckland complex, which includes the 328 meter Sky Tower, more than 20 restaurants and bars and the casino. It serves mainly families, businessmen and gamblers who play at the casino. It offers 323 rooms refurbished in 2013.[9]

Skycity Grand Hotel is a luxury five-star hotel and was officially opened by Prime Minister Helen Clark in April 2005 after costing $85 million. It is not located inside the main complex but is adjacent and is connected by an "Air Bridge". It serves mainly older guests, VIPs and high stake gamblers who play at the casino. Many celebrities have stayed at the hotel including Justin Timberlake, Christina Aguilera and Linkin Park. The Grand features 21 floors and 316 rooms. The rooms comprise The Grand Suite, 8 Self Contained Suites, 11 King Suites and 296 rooms. The room interiors were designed by Chhada Siembieda (specialists in luxury hotel interiors and responsible for the "W" hotel chain as well as the Hayman Island Resort, Sydney Hilton and the Hotel Intercontinental in both Sydney and in Hong Kong). Facilities and services include 24-hour room service and reception, a heated lap pool, fitness center with personal trainers, sauna, health spa, baby sitting and a hotel doctor.[10]

Darwin

Skycity Hotel, Darwin is premium five-star boutique hotel and was opened in July 2004. It was originally known as the "MGM Grand Darwin" until Skycity Entertainment Group bought the hotel and re branded it as Skycity Darwin.

The casino was originally granted a licence in 1979 and opened at its current premises in 1983.[11] Until 2004 it was known as the MGM Grand Darwin. The SKYCITY Entertainment Group purchased the hotel in 2004 for $195 million and took ownership on 23 July 2004.

Cinemas

Skycity Cinemas was a cinema operator wholly owned by Skycity Entertainment Group Limited, operating 97 cinema screens around New Zealand.

See also

References

External links

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