Queenstown Casino has been a spectacular performer for SkyCity Entertainment Group, which this week voted with its feet by leaving Christchurch and taking full control within the south.

Asian tourism is playing a big component in the lake area’s fantastic fortunes for the NZX-listed organization, which features a market capitalisation of $2.two billion.

Nigel Morrison, SkyCity chief executive, mentioned Queenstown income rose 12 per cent within the year to June 30, “one of your greatest final results since the casino opened” in 2000. He also emphasised its reputation with Asian gamblers.

Michelle Baillie, Queenstown Casino general manger, mentioned that result had been driven by powerful gaming revenues and successful price management.

“We had a sturdy second half from the year with elevated visitation from Asian groups who enjoy coming to Queenstown. This also enhanced the per consumer gaming devote,” she stated.

Late on Wednesday, SkyCity told the NZX it had sold its half share within the Christchurch Casino to co-owner Skyline Enterprises for $80 million, buying Skyline’s 40 per cent share in Queenstown Casino for $5 million.

That provides SkyCity total manage in the south and will allow it to leave Christchurch Casino, which has been suffering given that the earthquakes.

“We have stated for some time that we choose to become outright owners from the properties we’re involved in. Skyline expressed an interest in obtaining Sky-City’s 50 per cent stake in Christchurch, which fits with our technique,” Morrison said.

Skyline, whose operations contain the gondola companies in Queenstown and Rotorua, is controlled by Barry Thomas, on the NBR Richlist at $80 million. His household also own Queenstown newspaper Mountain Scene.

Morrison emphasised how Queenstown’s achievement was linked to Asian tourism growth along with the acquire meant links can be strengthened.

“This enables SkyCity to develop our international VIP enterprise within a main tourism destination, that is already an extremely popular destination for our overseas VIP guests,” he said, referring to the newly expanded Auckland Casino’s facilities aimed in the Asian high-rollers.

“Increasingly, our Horizon and Eight VIP consumers in Auckland want to visit Queenstown since it is so iconic to New Zealand and features a higher international profile,” Morrison stated this week.

“Having full ownership will enable us to develop a VIP supplying that will better accommodate these high-spending visitors.

That Queenstown link will assistance SkyCity pull Asian higher rollers into Auckland and Australian casinos.

“Queenstown will complement our current Horizon VIP offerings in Auckland and Darwin, which have currently benefited from investment made there more than the last two years,” he mentioned.

“Our VIP guests create much-needed export dollars for New Zealand and will bring added economic activity to the Queenstown region along with the country as a whole.”

Christchurch had suffered with Morrison saying it “continues to be challenged by a hard operating environment”.

SkyCity also announced this week it would invest $375 million in its Adelaide casino, within a vast upgrade and expansion soon after negotiating a new deal with the South Australian Government for extra pokies and tables.

Ken Matthews, Skyline’s chairman, stated Christchurch Casino was now a wholly owned subsidiary as well as the $80 million was being raised via the company’s facility with its bank.

“Whilst the prevailing issues in Christchurch have already been outlined previously to shareholders, your directors take into account there’s an upside steady with the rebuild in the inner city in certain and have total self-confidence that in time the area will regain its former status,” he said in a letter to shareholders.

SkyCity shares have shot up this week on NZX, from $3.62 on Tuesday just before the New Zealand and Australian announcements, closing yesterday at $3.84.