SkyCity confirms USD 215M expansion at Adelaide Casino

CEO Nigel Morrison confirmed the plans last week after the Auckland-based company reported its earnings improved 14pc in the first four months of the financial year.

Revenue advanced to US$235.5m during the period for New Zealand’s only listed company, boosted by a significant 77pc rise in earnings at Adelaide Casino, with revenue increasing 24pc. “Significant progress has been made on addressing the cost structure of the Adelaide operations,” commented Morrison, who has been spending a substantial time in the city.

Expansion plans at the casino, which sits inside the Adelaide railway station building on the north edge of the city, were first introduced in 2012 to expand its hotel, gaming areas, VIP suites and add a spa and rooftop pool. But plans were put on hold after the facility underperformed over the next two years, dragging down company-wide revenues.

With economic results on track and State Government requesting SkyCity to present revised plans, the new expansion details were revealed at the Company’s general annual meeting. The A$300m renovations include an 80-room luxury hotel, new restaurants, a major casino upgrade and premium gaming space with allowance for international VIP players.

“This development will help transform Station Road into a true entertainment precinct and SkyCity’s investment will create much-needed jobs and economic growth for South Australia,” said Morrision, adding the timeline of construction has yet to be finalised and is dependent of the site lease completion with the State Government.