Gaming and hotel group Tsogo Sun on Wednesday reported a 10% drop in first-half adjusted headline earnings to R754m, partly as a result of consumers having little disposal income.Total income in the six months to September was up just 1% to R6.4bn, after net gaming win dropped by 3% to R3.56bn.This was partially offset by 2% growth in hotel rooms revenue, a 9% growth in food and beverage revenue and growth in property rental income.The opening of Time Square casino affected the performance of the gaming division, as well as the high base effect that was created in the first quarter of last year when Montecasino recorded a strong growth.The underlying operations of the group remain highly geared towards the South African consumer (in gaming) and the corporate market (in hotels).Revenue for the South African hotels division was up 15% to R1.7bn, in part assisted by the inclusion of the Garden Court Umhlanga and the StayEasy Pietermaritzburg from October 2016 and consolidation of the H...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, Morningstar financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00.