Chairman Barry Thomas announced a dividend increase from 25c a share last year to 28c, an overall payout increase from $8.43 million to $9.46 million, which he wanted to maintain in the future.
"Although we have some major expenditure in the new building development and ongoing work at our various properties we are in a very good position," Mr Thomas said.
He highlighted an upgrade of the Queenstown gondola next year to increase capacity, and expansion of facilities at Dunedin Casino, of which Skyline has a 33% stake.
However, he cautioned shareholders that, having reaped the rewards of strong tourism numbers in recent years, the costs of maintaining and refurbishing a wide variety of properties would deliver "times when it really does impact on our profitability".
Dunedin Casino had traded constantly and was now paying dividends, he said.
Dunedin Casino general manager Nick Winder was contacted yesterday and confirmed a more than $2 million cafe-bar development at the casino, with resource consent in place and hopefully starting by the end of the year.
A cantilever would be built over the existing Southern Cross Hotel/casino car park to provide a 44-seat cafe and 80sq m mezzanine bar which might be open by mid-2009, Mr Winder said.
For the year to March, Skyline reported operating revenue up 8.8% from $42.8 million to $46.6 million, before-tax profit up from $23.8 million to $25.2 million and after-tax profit up from $18.7 million to $19.4 million.
"The directors are still keen to establish further entertainment facilities [at Dunedin Casino] but need to get agreement from landlords and other interested parties," Mr Thomas said in his report, declining to give further details when contacted.
Apart from the Queenstown gondola upgrade, Skyline had the resource consents in place to rebuild a retail centre on the corner of Rees and Beach Streets following a major fire earlier in the year - the project would go to tender in about eight weeks, he said.
Skyline increased its stake in Christchurch Casino from 41% to 46% after it sold its stake in the Crown Plaza Hotel, for $61.5 million.
However, that sale was after balance date and was not booked, but the casino shares were purchased for "somewhat less," Mr Thomas said.
He did not expect the downturn in property values to affect Skyline operations or future results, noting the gondola operations provided cashflow and profitability.
Similarly, any downturn signalled in tourism numbers by other operators was countered in Queenstown by good accommodation capacity, growth in flight numbers and an increasing number of Australian and Asian tourists using Skyline facilities, he said.
Mr Thomas said the size of the Queenstown market made it difficult to generate reasonable profits at its Skycity Queenstown Casino and a smaller management team had been put in place.
In Canada, the North Sky Luge operations posted improved earnings and ride numbers, while in Singapore the Sentosa Luge contributed "significantly" to group earnings, with an improvement of 200,000 luge rides on the previous year.
Skyline will hold its annual general meeting on September 20 in Queenstown.
