Skyline boosts profits on strong tourist growth 30 Jun 2016
Related articles
- NZ consumers grow more upbeat, may resume spending Business
- Minister launches SmartGate in Wellington Travel
- Authentic Kiwi hospitality for 2011 rugby fans Property
- Unique website launched for Rugby World Cup Sport
- Knowles quits as CEO of KiwiBank Business
- Snow on The Remarkables Living
- NZ migration bolstered by British invasion Migration
- NZ manufacturing activity reaches highest since 04 Business
- NZ dollar hits 22-month high vs euro Business
- B&Bs advised against highly inflated tariffs Sport
Thursday 30 June 2016 04:57 PM
Skyline boosts profits on strong tourist growth
By Fiona Rotherham
June 30 (BusinessDesk) - Diversified tourism company Skyline Enterprises is to pay shareholders a 50 cent dividend per share for the 2016 financial year along with a one-off bonus of 5 cents per share to celebrate its 50 years in business.
On the back of a national tourism boom, the company has reported a pre-tax profit of $66.8 million, up on $63.3 million the prior year, for the financial year ended March 31, it said in a statement to the Unlisted market.
Skyline operates gondola and luge operations in Queenstown, Rotorua, Singapore, and Canada and is building a sixth site in South Korea. Its other tourism products include helicopter and scenic flights, cruises, rafting, accommodation, and the Christchurch casino.
It reported a $10.1 million in trading profit, which was $200,000 up on the prior year and a rise in the value of the commercial property portfolio to $10.1 million which was below the $16.7 million increase booked in 2015. Once revaluation, amortisation, and tax deferred on building depreciation are taken out, Skyline reported a $44.4 million profit, up $7.7 million on the prior year.
The figures are not broken down by individual operation in the preliminary results, which are still to be audited. Chairman Mark Quickfall said underlying net trading profit had increased 64 percent in the past two years owing to New Zealand’s strong tourism growth, along with the company’s “reinvestment and new initiatives providing strong returns”.
He said while investor demands in the financial markets for increased dividends are understandable, retaining funds is important to Skyline’s long-term growth strategy to take advantage of potential acquisitions and to manage any unexpected industry downturn.
Chief executive Jeff Staniland said the tourism group had a strong balance sheet, low debt, and high cash flow of more than $50 million a year, which meant it could fund growth without any need to go to shareholders or the market for extra cash. The group’s two largest shareholders are entities associated with Grant Hensman and Barry Thomas.
Although Skyline’s New Zealand operations were mature and well-established, the strategy was to get growth through revamping the offerings such as the new Stratosphere Restaurant at Rotorua where chefs can cook what customers choose, Staniland said. “They pay a premium for that but it is added value,” he said.
It has also been adding new products such as the Zipline operation and mountain biking park trail in Rotorua and looking for other tourism businesses of scale to acquire in New Zealand.
Skyline is spending $60 million to double the size of its Queenstown gondola operations to cope with peak tourism times.
A couple of new sites in Asia for luge operations are well advanced, though offshore expansion had been hampered by difficulty finding appropriate sites.
The $20 million Tongyeong Luge project in South Korea will be completed by year’s end.
Staniland said they’re still keen to introduce a lower risk and lower capital cost international licensing model of build, own and operate, but hadn’t yet found a suitable partner.
Trading at the Christchurch casino this financial year was consistent with the past few years and plans are advancing for an adjacent hotel to be operated by a third party.
(BusinessDesk)
ENDS
News
Hilary Timmins' Award-Winning UK Documentary Series To Inspire NZ Students
29 Jun 2020 Education
Dream Catchers, produced and directed by Hilary Timmins, celebrates the success stories of more than thirty inspirational New... more
New Zealand reaffirms support for Flight MH17 judicial process
7 Mar 2020 News
Ahead of the start of the criminal trial in the Netherlands on 9 March, Foreign Minister Winston Peters has reaffirmed the need to... more
Business
NZ Government's Economic package to fight COVID-19
17 Mar 2020 Business News
The Coalition Government has launched the most significant peace-time economic plan in modern New Zealand history to cushion the... more
NZ Government announces aviation relief package
19 Mar 2020 Business News
Transport Minister Phil Twyford today outlined the first tranche of the $600 million aviation sector relief package announced earlier... more
Living
Diversity was Key at New Zealand Trade Tasting in London
6 Jun 2022 Food & Wine
New Zealand Winegrowers Annual Trade Tasting was recently held in London, on Wednesday 4 May, in Lindley Hall.
It was the first... more
Kiwi author stuns Behind the Butterfly Gate
12 Jan 2022 Arts
Hidden behind the Butterfly Gate is where the secret has been kept for 76 years...
New Zealand writer Merryn Corcoran’s... more
Property
Fairer rules for tenants and landlords
17 Nov 2019 Property
17 NOVEMBER 2019
The Government has delivered on its promise to the over one million New Zealanders who now rent to make it fairer... more
New Zealand Government will not implement a Capital Gains Tax
17 Apr 2019 Property
The Coalition Government will not proceed with the Tax Working Group’s recommendation for a capital gains tax, Jacinda Ardern... more
Migration
Boosting border security with electronic travel authority – now over 500,000 issued
19 Nov 2019 Migration
19 NOVEMBER 2019
We’ve improved border security with the NZeTA, New Zealand Electronic Travel Authority, which helps us to... more
Christchurch reinstated as refugee settlement location
18 Aug 2018 Migration
18 AUGUST 2018
HON IAIN LEES-GALLOWAY
The announcement that Christchurch can once again be a settlement location for refugees... more
Travel
Gallipoli Anzac Day services cancelled
19 Mar 2020 Travel & Tourism
The New Zealand and Australian Governments have announced this year’s joint Anzac Day services at Gallipoli will be cancelled... more
New Zealanders advised not to travel overseas
19 Mar 2020 Travel & Tourism
New Zealanders advised not to travel overseas
more
Sport
The Skipper's Diary: Sir Richard Hadlee honouring his father and NZ's Forty-Niners
27 Oct 2019 Cricket
NZNewsUK London Editor Charlotte Everett spoke to Sir Richard Hadlee about why he’s chosen to publish his father’s... more
PREVIEW: All Blacks v England semi-final
26 Oct 2019 Rugby
The two most convincing quarterfinals winners are set to square off in a semifinal showdown for the ages when the All Blacks meet old... more
Columns
Gordon Campbell on the Gareth Morgan crusade
11 Nov 2016 Opinion
Gordon Campbell on the Gareth Morgan crusade
First published on Werewolf
The ghastly likes of Marine Le Pen in France and Geert ... more
Gordon Campbell on the US election outcome
10 Nov 2016 Opinion
Column - Gordon Campbell
Gordon Campbell on the US election outcome
Well um.. on the bright side, there (probably)... more
Kiwi Success
Congratulations to Loder Cup winner
26 Sep 2018 People
25 SEPTEMBER 2018
The Loder Cup, one of New Zealand’s oldest conservation awards, has been awarded to Robert McGowan for 2018... more
Appointments to New Zealand National Commission for UNESCO
16 Aug 2018 Appointments
16 AUGUST 2018Appointments to New Zealand National Commission for UNESCO
HON JENNY SALESA
Associate Education Minister Jenny Salesa is... more
Recruitment
Historic pay equity settlement for education support workers
14 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more
Historic pay equity settlement for education support workers
22 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more