World Cup Hopes for Sun International

May 14 - Revenue for Sun International remained flat, according to the group's third quarter results posted this week.

South Africa's largest hotel and casino group posted its results and showed that profits have dropped by 8% in the same time period.

Nevertheless, Sun International management remained optimistic and said that it expected improvement in these figures mainly due to the upcoming World Cup soccer tournament.

The third quarter numbers were affected mainly by the recession, as Africa's economy took a hammering. The recession led to the loss of jobs and personal income.

Private gamblers, who were suddenly deprived of salaries and security, stopped gambling and visiting resorts, leading to Sun International's drop in profits.

According to Sun International, its earnings before interest, taxes, amortization and depreciation dropped to R594 million.

Revenue remained significantly flat at R1.97 billion, a slight 1% dip from the same time period a year ago.

Nonetheless, the group refused to allow these figures to dampen its optimism regarding the upcoming World Cup and said that it expected a growth in revenue, starting almost immediately with the launch of the World Cup.

In other Sun International news, the group said that it would be recommencing work on its casino that was damaged by an earthquake in Chile several months ago.

Damage of around $10 million was caused to the unfinished casino.

Tell A Friend