The company reported a normalised profit after tax of $152.7million for the year ended June, up 14% on the $134.1million reported in the previous corresponding period.
Forsyth Barr broker Suzanne Kinnaird said the result was 3% below expectations and 5% below consensus, reflecting a weaker-than-expected operating profit following softer trading through May and June.
The operating profit was $330.1million, up 8.2% on the $304.9million reported in the pcp. Normalised revenue was up 7.5% at $984.9million from $916.1million in the pcp.
SkyCity management said the second half of the financial year was below their internal forecasts.
Ms Kinnaird said at the divisional operating profit level, Auckland was modestly below expectations and Queenstown was ahead, although it was a small part of the group. The Australian properties of Adelaide and Darwin were weaker than anticipated.
SkyCity declared a final dividend of 10.5c per share, bringing the total dividend to 21cps, modestly lower than anticipated but in line with the weaker earnings result, she said.
''SkyCity has not provided any specific 2017 guidance and outlook commentary is limited. The company reiterated the macro environment in New Zealand remains supportive while Australia remains challenging.''
Outlook commentary was consistent with recent updates, Ms Kinnaird said.
The company also reiterated previous timelines for its key capital projects in Auckland and Adelaide and the market guidance on the timing and amount of the capital expenditure.
Forsyth Barr's reported profit forecast for 2017 of $178.8million implied 17% growth with the consensus at $185million.
''We expect to see modest downgrades to market expectations following SkyCity's 2016 financial year result. Our current rating is neutral,'' she said.
SkyCity chairman Chris Moller said significant progress had been achieved on the New Zealand International Convention Centre (NZICC) and Hobson St hotel projects during the reported period.
The overall development programme was progressing well and remained on budget. Excavation started in June and completion of both the convention centre and the hotel was expected in the first quarter of 2019.
''The NZICC and Hobson St hotel developments are together one of the most significant building projects in Auckland in a generation and will help stimulate significant tourism, employment and broader economic growth for Auckland and New Zealand.''
SkyCity gained concessions once the contracts for the projects were signed. They included an extension of its Auckland casino licence to June 30, 2048, and a 30% rise in gaming capacity for the Auckland property.
