In its full-year earnings results, SkyCity Entertainment Group, with four casinos in New Zealand and two in Australia, revealed that former CEO Nigel Morrison did not walk away empty-handed after his abrupt resignation April 29.
According to the Asia Gaming Brief, Morrison took home a total of $2.3 million—six months’ salary of almost $979,000, an equal amount in short-term incentive pay, and dividends of more than $363,000 from his long-term incentive shares.
The short-term incentive pay was based on “achievement of the company’s budgeted net profit,” the company stated. “Achievement of the non-financial KPIs required the SkyCity board to be satisfied that Mr. Morrison had met the pre-agreed progress milestones in relation to the NZICC and Hobson Street hotel projects, the Adelaide Casino redevelopment project, a plan of the options for funding all three major development projects and a digital and innovation strategy.”
Morrison also pocketed almost 980,000 shares through the vesting of shares from his long-term incentive plan. The shares were bought with an interest-free loan from SkyCity. Finally, he received a payment of $96,917 for outstanding annual leave. Overall, AGB reported, Morrison received $6.1 million in cash during the year, plus his shares.
The National Business Review reported that SkyCity’s net profit rose to $145.7 million or 24.3 cents per share in the year ending June 30 from $128.7 million or 22 cents a year earlier. Revenue increased 9.1 percent to $1.1 billion, and profits were up 13 percent.
SkyCity’s New Zealand properties have seen a boost from record tourism and migration, NBR reported. Its Auckland complex also saw a spike after the government granted new gaming concessions in November 2015, including additional gaming machines and a cashless payment system. SkyCity also enjoyed robust VIP activity for the year.
“The continued momentum at SkyCity Auckland reflects the significant investment in the property over the past few years, initiatives to drive incremental visitation through customer segmentation and positive external factors which remain supportive of the business,” interim Chief Executive John Mortensen said.
The worst performer was SkyCity Darwin, following increased local gaming competition from pubs and clubs in the last financial year, reported NTNews.com. “SkyCity Darwin achieved disappointing results which were adversely impacted by challenging trading conditions in the Northern Territory,” said Mortensen. “The decline in Darwin’s performance was primarily driven by weaker hotel demand and reduced food and beverage covers. Local gaming revenue was soft having been adversely impacted by increased competition from pubs and clubs.”
The NT Government removed the cap on pokies allowing clubs to have 55 and pubs a maximum of 20. Minus VIP business, SkyCity Darwin revenue was down 5.3 per cent to $116.2 million.
