Distributable profit of $20.9m up by 25%

BUSINESSDESK: Skyline Enterprises, the Queenstown-based tourism company whose shares trade on the Unlisted platform, says its so-called distributable profit rose 25%, allowing it to lift its dividend.

Distributable profit was $20.9 million in the 12 months ended March 31, from $16.7 million a year earlier, the company said in a statement to Unlisted. It gave few other financial details, saying the results are subject to audit.

Shares of Skyline last traded at $6.30, valuing the company at $213 million. The stock has gained 2.4% this year.

Skyline performed “somewhat better than anticipated” in what was a difficult year for the tourism industry characterised by changing visitor patterns and reduced length of stay and discretionary spending, chairman Ken Matthews said.

“The ability to achieve realistic yields in the face of reductions in the length of visit and lower spending visitors remains challenging,” he said. The company’s range of products had cushioned it from changes in any one sector.

Skyline Queenstown produced “a creditable bottom line” even though gondola passenger numbers were down 5%. Skyline Rotorua lifted earnings by 8%.

Earnings for its Blue Peaks Lodge & Apartments in Queenstown were in line with the previous year’s results, while its Mercure Leisure Lodge in Dunedin was “materially assisted” by the Rugby World Cup.

Earnings from its Mont Tremblant luge in Canada were similar to last year’s and Totally Tourism, acquired in September, contributed seven months of earnings.

Its part-owned SkyCity Queenstown Casino lifted earnings from gaming, food and beverages, while the Christchurch casino continued to suffer from the drop in visitors after the earthquakes.

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Distributable profit of $20.9m up by 25% – Skyline Enterprises