SkyCity (ASX:SKC) share price on the rise despite 37% revenue drop

The SkyCity (ASX:SKC) share price has been trading higher today, despite the company reporting reduced numbers across the board in its half-year results. Let’s take a closer look.

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The SKYCITY Entertainment Group Limited (ASX: SKC) share price is trading 2.29% higher at the time of writing.

Earlier today, SkyCity released its half-year results for the six months ended 31 December 2020 (1H FY21). Despite the report including reduced revenue and other numbers, the SkyCity share price has remained resilient in today’s trade. Let’s take a closer look.

SkyCity half-year 2021 highlights

SkyCity’s total reported revenue for the period tumbled 37.7% compared to the prior corresponding period (pcp), landing at NZ$449.9 million.

Earnings before interest, tax, depreciation and amortisation (EBITDA) took a 62.6% dive to NZ$152.6 million compared to the pcp, which brought in NZ$407.5 million.

Net profit after tax (NPAT) for 1H FY21 was NZ$78.4 million. This is 76.1% less than the 1H FY20 period’s NPAT of NZ$328 million.

The board suspended dividends for the period but expects to pay the final dividend for FY21, provided there are no prolonged property closures.

SkyCity cited a number of factors that impacted its half-year results, including the fire at the New Zealand International Convention Centre, the Auckland car park concession transaction, a settlement agreement with The Fletcher Construction Company Limited, and the coronavirus.

What else could be moving the SkyCity share price?

In addition to announcing results, SkyCity also announced the appointment of Julie Amey to the role of chief financial officer. 

Amey’s most recent role is with Shell Australia as Vice President Finance Integrated Gas. Other international roles Amey has held include Vice President Finance Qatar Shell, chief financial officer for Shell & Turcas A.A. Turkey and business finance manager and financial controller for Upstream Middle East in the United Arab Emirates.

Amey will commence her position with SkyCity on 1 May 2021.

A snapshot of SkyCity

SkyCity operates in the gaming/entertainment business and also in the hotel and convention, hospitality, recreation and tourism sectors. The company’s operating segments include SkyCity Auckland, Other New Zealand Operations, SkyCity Adelaide and International business.

The company presently has a market capitalisation of $2.1 billion and 760.2 million shares outstanding.

At the time of writing, the SkyCity share price is sitting at $2.68, a 24% drop on this time last year. 

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Motley Fool contributor Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Sky City Entertainment Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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