SkyCity (ASX:SKC) share price on the rise despite 37% revenue drop

The SkyCity (ASX:SKC) share price has been trading higher today, despite the company reporting reduced numbers across the board in its half-year results. Let’s take a closer look.
The post SkyCity (ASX:SKC) share price on the rise despite 37% revenue drop appeared first on The Motley Fool Australia. –

hand on touch screen lit up by a share price chart moving higher

The SKYCITY Entertainment Group Limited (ASX: SKC) share price is trading 2.29% higher at the time of writing.

Earlier today, SkyCity released its half-year results for the six months ended 31 December 2020 (1H FY21). Despite the report including reduced revenue and other numbers, the SkyCity share price has remained resilient in today’s trade. Let’s take a closer look.

SkyCity half-year 2021 highlights

SkyCity’s total reported revenue for the period tumbled 37.7% compared to the prior corresponding period (pcp), landing at NZ$449.9 million.

Earnings before interest, tax, depreciation and amortisation (EBITDA) took a 62.6% dive to NZ$152.6 million compared to the pcp, which brought in NZ$407.5 million.

Net profit after tax (NPAT) for 1H FY21 was NZ$78.4 million. This is 76.1% less than the 1H FY20 period’s NPAT of NZ$328 million.

The board suspended dividends for the period but expects to pay the final dividend for FY21, provided there are no prolonged property closures.

SkyCity cited a number of factors that impacted its half-year results, including the fire at the New Zealand International Convention Centre, the Auckland car park concession transaction, a settlement agreement with The Fletcher Construction Company Limited, and the coronavirus.

What else could be moving the SkyCity share price?

In addition to announcing results, SkyCity also announced the appointment of Julie Amey to the role of chief financial officer. 

Amey’s most recent role is with Shell Australia as Vice President Finance Integrated Gas. Other international roles Amey has held include Vice President Finance Qatar Shell, chief financial officer for Shell & Turcas A.A. Turkey and business finance manager and financial controller for Upstream Middle East in the United Arab Emirates.

Amey will commence her position with SkyCity on 1 May 2021.

A snapshot of SkyCity

SkyCity operates in the gaming/entertainment business and also in the hotel and convention, hospitality, recreation and tourism sectors. The company’s operating segments include SkyCity Auckland, Other New Zealand Operations, SkyCity Adelaide and International business.

The company presently has a market capitalisation of $2.1 billion and 760.2 million shares outstanding.

At the time of writing, the SkyCity share price is sitting at $2.68, a 24% drop on this time last year. 

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Sky City Entertainment Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post SkyCity (ASX:SKC) share price on the rise despite 37% revenue drop appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!