Sun International Pleased with Latest Report

September 1 - When economic conditions get tough, one of the first things that consumers cut back on is leisure time, with regular gambling activities dropping on the list of essentials.

However, Sun International has revealed that despite difficult conditions in the current South African market, it has still managed to produce satisfactory financial figures for the year ending June 30th. This report was released on Thursday to the public.

A close inspection of Sun International's number indeed reveals that there has been a general drop in the amount of money that consumers spent at this group's resorts and gambling spots overall. However, if one looks at the Earnings Before Interest, Tax, Depreciation and Amortisation (EBITA) figures, it is clear that Sun International is doing fine with an increase of 11%.

Sun International announced that the result of  poor economic conditions in the country were somewhat offset by a greater number of tourists to South Africa who came to take advantage of a weaker rand. These visitors landed up spending enough money at Sun International resorts to counter any long term damage made by a drop in the number of local spenders.

According to the financial report, group revenue increased by 10% to R7.6 billion. Gaming revenues jumped to R5.8 billion (an increase of 9%), with slots and table games being the fastest growers at 9% and 12% respectively.

The report also saw a 3% rise in adjusted headline earnings per share. The total dividends per share were 20% higher than last year's figures, set at 480c per share for the year.

Hospitality and other Sun International revenues grew by 12%.

Sun City is the flagship resort for the Sun International group, and you can read our review to learn more.

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