In an update for the six months ended September 30, chairwoman Jan Hunt said the overall performance picture was positive with revenue at $91 million for the period, ahead of last year and budget, despite a challenging operating environment with high inflation, constrained supply and a tight employment market.
Unaudited underlying trading earnings before interest and tax for the six months period was $26 million which was 33% ahead of budget and 44% up on last year.
The Skyline Queenstown business continued to benefit from the increase in international visitors, particularly Australians over the winter months. That had carried through into the recent Australian and New Zealand school holidays and all lead indicators pointed to strong summer trading.
The company’s commercial property tenants had also benefited from the increase in visitors and a recent highlight had been the opening of the redeveloped O’Connell’s property. Christchurch Casino’s trading had continued to be solid and an offshore online casino subsidiary was due to open before the end of the year.
International operations had maintained a largely domestic focus, except Singapore which, like Queenstown, had seen an increase in international guests. The Skyline Luge Singapore business continued to deliver improved revenue against last year and budget.
The two operations in South Korea had experienced a tougher trading environment with visitation impacted by ongoing Covid-19 restrictions which were only now starting to recede. Poor weather and a higher number of typhoon events in September also contributed to softer-than-forecast results.
The redevelopment of the Skyline Queenstown property continued at pace with forestry removal, bottom and top terminal construction and the formation of the car park site.
Work was on schedule and on budget; the opening of the new 10-seater gondola in July next year would mark not only an exciting milestone for the redevelopment but be a timely arrival as visitor levels increased, Ms Hunt said.
Construction of the Skyline Luge site in Kuala Lumpur was progressing and, while the civil works had taken slightly longer than expected, an opening in late 2023 was still targeted.
The first Skyline site in the United Kingdom, in Swansea, Wales, which would comprise a gondola, luge and zipline alongside mountain biking and food and beverage, was progressing well, with financial support from the Swansea Council and Welsh Government to be finalised before the year end, she said.
Bruce Thomasen has been appointed to the board of Skyline Enterprises, effective January 1. He first joined the Rotorua business in 2003.
As previously announced, Ms Hunt was retiring from the board at the end of 2022. Peter Treacy would take over as chairman.
