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SkyCity’s chairman says the entertainment company is in a better place after paying penalties of about $78 million, hiring new executives and nearing completion of its International Convention Centre in Auckland, under construction by Fletcher Building.

The site caught fire in 2019 – the year it was originally set to open before the damage, causing a further delay on top of earlier time and cost overruns.

“It’s no secret that Fletcher [Building] have run over cost on that project,” SkyCity chairman Julian Cook told Markets with Madison.

“It’s no secret that historically, there have been significant issues for Fletchers on that site and it’s also no secret that that has cost us a lot of money, the delays which have happened.”

The cost was fixed for SkyCity, he said, meaning Fletcher Building was wearing the financial damage – although SkyCity had also lost out on years of earnings from events at the site.

“However, credit where credit is due, for the last two to three years, Fletchers have been running a good operation over there,” Cook said.

The site was supposed to cost around $750m and open in 2019. But about $1 billion later and several years of construction, it was still not complete.

The Convention Centre was set to open in 2025.

“We’re really excited by it. We think it’s going to be a game changer for this business, but actually for Auckland generally.”

SkyCity expected it would welcome 33,000 international visitors annually, providing revenue for the company that made an annual net loss of $143m last financial year.

Investors were clearly unhappy with the company – it had suspended dividends while it fixed its finances and compliance problems that led to a regulatory crackdown and forced closure of its Auckland casino this year.

“I think we deserved it, to be blunt,” Cook said.

“We will get over these regulatory issues and we will have a much better business for it.”

- NZ Herald