(Adds CEO comments, details on international business performance))
WELLINGTON, Aug 9 (Reuters) - New Zealand casino operator Sky City Entertainment Group (SKC) reported a 69.2 percent slump in full-year net profit on Wednesday after its international business took a hit from reduced numbers of Chinese visitors after arrests involving its rival Crown Resorts (CWN).
The results were also weighed down by a previously announced A$95 million ($75.15 million) impairment charge for its Darwin casino after the Northern Territory government relaxed gaming laws, increasing competition. Sky City said it was considering "strategic options" for the casino as a result.
Sky City posted a NZ$44.9 million ($32.88 million) net profit for the year ended June 30, compared with NZ$145.7 million for the previous year. International business turnover fell 30 percent to NZ$8.7 billion.
"Sky City's international business was adversely impacted by increased restrictions on funds transfers and a reduced number of visits by larger customers during the period, particularly following the Crown arrests in 2Q17," the company said in a statement.
A Chinese court jailed 16 employees of Crown Resorts in June, including three Australians, before releasing 10 the following month, after a lengthy probe into how the firm lured Chinese high-rollers to its casinos.
Sky City said that earnings before interest, tax, depreciation and amortization was expected to improve "modestly" in fiscal 2018 with an expected international business recovery likely offset by weakness in its Darwin operations.
"An uncertain near-term outlook for the international business remains but activity is expected to improve from recent levels due to increased visits from larger customers and initiatives to attract new customers," the company said.
Sky City also said it will pay a dividend of 10 NZ cents per share, down slightly from 10.5 cents the previous year. ($1 = 1.3656 New Zealand dollars)
