WELLINGTON, Oct 21 (Reuters) - New Zealand casino operator SkyCity Entertainment Group Ltd (SKC) warned on Friday that it is likely to be adversely affected by the detention of Crown Resorts employees in China as it posted a fall in first-quarter revenue.
Shares in SkyCity dropped 13.4 percent amid fears that a crackdown on gaming by Chinese authorities would hurt its ability to attract Chinese VIP gamblers, a key part of its business.
SkyCity does not have an office in China or any China-based employees, but said it does engage independent contractors in China who help manage customer relationships from time-to-time.
"SkyCity is closely monitoring recent events concerning Crown employees being detained by Chinese authorities," the company said in its earnings update. "Financial impact of this situation remains highly uncertain, but is likely to be adverse over the short-to-medium term."
Eighteen of Crown's employees, including its head of VIP gambling, have been detained for several days by the Chinese authorities. As of Thursday no charges had been laid.
. SkyCity said none of its contractors have been questioned ordetained.
The Auckland-based company reported a 5.7 percent fall in normalised revenue to NZ$262.1 million ($188.45 million) for the quarter ending Sept. 30, citing below-trend gaming activity in Auckland, lower turnover from its international business, ongoing difficult trading conditions in Darwin and the high New Zealand dollar.
($1 = 1.3908 New Zealand dollars)
