Skyline

[Snoopy]

discl: sniffing, not holding.

Skyline Enterprises mission statement is to provide world class leisure and enertainment experiences that appeal to a wide range of guests that are positioned as quality products command a premium price and provide a high return on investment for our shareholders.

Gondola Operations: External Turnover $131.4m (includes $15.2m from Singapore and $5.7m from other overseas)

Skyline Enterprises was formed by a group of Queenstown tourism business enthusiasts. They were driving tourists up a rough metal road in a VW Combi to ‘Bob’s Peak’, to enjoy a mountain vista of Queenstown township and the Remarkables Mountain range over a cup of tea. There had to be a better way. And following a 1966 capital raising, the original ‘Skyline Gondola’ at Queenstown, opening in 1967, was the result.

Roll forwards 50 years and ‘Gondola Queenstown’, already upgraded to four seaters (1987), is on the cusp of being upgraded again to ten seat gondola cars. ‘Gondola Rotorua’ provides a similar experience in the North Island. Both Gondolas support Luge runs. Unlike the Olympic Luge, the Skyline interpretation puts plastic karts with haul brakes on a contoured asphalt track. Thus overtaking is allowed and bottlenecks are avoided. This ‘luge technology’ incorporates Intellectual Property that has since been partnered internationally: Canada ( Mt Tremblent {2003}, Calgary Winsport Olympic Park {2013}), Singapore ( Sentosa Island {2004}), South Korea ( Tongyeong {2016) , Busan {pending 2019}). The UK and Europe are on the development horizon. Hospitality developments crown each hilltop station.

My ‘Gondola Operations’ heading incoporates the fully owned non-Gondola domestic ‘Totally Tourism’ operations. Totally Tourism’s focus is on two major areas; South Island helicopter operations and Milford Sound (Milford Sound Flights and Mitre Peak Cruises) with the related heliski, helihike and Combo operations supporting these areas. These are iconic tourism operations in their own right.

With world leading technology and a proven international growth path, the core business of SKE ticks the ‘significant market player’ box.

Christchurch Casino: (External Turnover $62.030m )

Skyline Enerprises is the only licenced casino operator in Christchurch. They have fully owned the Christchurch Casino from 24 December 2012, after buying out former partner ‘Sky City Entertainment’. Casino revenue includes the net aggregate of Casino wins and losses. The Casino includes entertainment and dining venues. Skyline also owns a 33% share of the Dunedin casino. But this is accounted for under the ‘All Other Segments’ segment. As the sole Casino licence holder in Christchurch, the significant market player box is ticked.

Property Investment: (External Turnover $5.403m)

The company owns Queenstown’s largest retail complex O’Connell’s Pavilion, Eichardt’s Hotel on the lakefront and the adjacent ‘New Eichardt’s Building’ offering a mix of accommodation, office, restaurant and retail spaces. Skyline is the landlord, not the operator of these properties. Prime property space is in short supply ln Queenstown and these assets are highly prized.

(Largely) Accommodation: (External Turnover $6.797m)

The two principal hotels/accommodation ‘owner run’ are the ‘Mercure Leisure Lodge’ in Duke Street Dunedin, and ‘Blue Peaks Apartments’ in Coronation drive in Queenstown.

Overall View

There is plenty of competition in the hotel/accommodation market. But all of the other business units are very strong or unique entertainment propositions.

Conclusion: Pass Test