Dunedin City Holdings Result Disappoints

The profit of Dunedin City Holdings is down to $8.6 million form 22.6 million last year. Although half of this drop is due cash being paid to the Council as interest rather than dividends, it is still a disappointing result.
Dunedin City Holdings has been a cash cow for the City Council, and the it is expecting DCH to provide $60 million towards the new Stadium. But this cash flow is under threat from DCH's declining profits.
Factors which could reduce future Dunedin City Holdings's profits include:

• Tourism downturn
• Construction downturn in Central Otago
• Investment in residential development in Luggate
• Investment in Broadband
• Investment in The Street