Kerzner International, operator of casino resorts and luxury hotels, has announced pre-tax profits of $50.6m (£27.8m) for the second quarter of 2004 – an increase of around 13 per cent from the same period last year.

The company also reported adjusted net income of $29.7 (£16.3m) for the three-month period ended 30 June 2004, up 22 per cent from $24.3m (£13.2m) in 2003.

Butch Kerzner, chief executive, said: “Strong results at Paradise Island drove these record results, enabling the Paradise Island portfolio to exceed the $50m (£27.5m) pre-tax profit mark for the first time in a second quarter.”

Kerzner also announced its intentions to boost its room capacity at The Palm in Dubai to 2,000 rooms, increasing development costs to $1.1bn (£605m).

In Morocco, the company has secured an agreement with the government to develop and manage a $230m destination casino near Casablanca.