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May 12 - The Sun Group, one of South Africa's largest gambling,
entertainment and tourist entities, reported revenue of R1,88 billion, up from
last year's R1,76 billion. This translated to a 7% rise in revenue for the third
quarter period to March.
Earnings before depreciation, tax and amortization were up 6% to R704
million.
Yet despite these impressive figures, the Sun Group has warned that less than
ideal casino trading conditions may affect future growth in the company. Less
consumer spending has been reported due to the rising cost of living and higher
interest rates.
"The performance of group casinos reflected difficult conditions affecting
consumer spending in SA," said Sun International.
Carnival City and the Boardwalk, two casinos in the Sun Group's portfolio of
gambling locations, reported a loss of 3% and 4% in revenue. However, these
figures were offset by a 9% revenue growth at Cape Town's GrandWest and an
impressive 12% growth at Sibaya Casino.
All in all, casino revenue for the Sun Group rose 6% to R1.44 billion from
last year.
The Sun Group shareholders were also told that investments in South Africa,
as well as Chile and Nigeria, were on target and going as planned. Average room
occupancy at all the group's casinos and resorts was around 78%, while room
revenue grew to R243 million - an increase of 15%. It is expected for room
revenue to climb even higher as tourists take advantage of favorable currency
rates to visit South Africa.
The Sun Group runs some of Southern Africa's top destinations, including Sun
City, the Wild Coast Sun, Gaborone Sun and the Royal Livingstone in Zambia.
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