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Sky City Casinos are
Due for A Makeover
Sept. 13-06
The largest casino operator in New
Zealand, Sky City Entertainment Group Ltd. will possible be
loosing money this year in lie of plans to build a hotel. The
company wishes to expand its service so that guest may stay over
night and spend more money. The casino will also increase the
number of slot-machines on the casino floor and build an extension
to the already burgeoning gaming facility.
In the mean time however, Sky City
will have to endure a profit loss of 2.2% according to any lists
calculations of expected costs for the expansion. The shift of
focus from operation to expansion will prove costly for the
casino. This is not the only concern of the growing casino,
apparently consumer sentiment has been rather lack luster as of
late causing profits to drop marginal
Sky city hopes that through expansion
they may have the opportunity to spark renewed interest in the
casino. Although there intensions are to increase profits and over
all drawing power of their gaming floor, the risk that they are
taking on could spell financial ruin for the company.
Alan Moore, who helps to manage Sky
City, projects the amount rate of expansion to crawl rather than
run this year. "Growth is going to be a bit slower, and People are
just being a bit cautious on it". The caution Moore refers to is
the apprehension of business have in reference to the casino
expansion.
With widespread expansion among
competing casinos, Sky City may have very little choice but to
foster growth. The Chief executive Officer of Sky City, Evan
Davies, has his sights set on expansion not only in New Zealand,
but also in Darwin, Auckland and Adelaide.
The cost incurred in the building
years is being viewed as an investment that, if done properly,
will illicit more than adequate returns.
Sky City Casino will move forward with
their plans this year. Hotel and casino entertainment are the
weapons the company will wield to fight against to declining
profits and over all interest in the gaming house. Sky City
currently pushes forward to increase their consumer base.
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-September
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