International betting offsets Phumelela’s racing losses
Phumelela Gaming and Leisure managed offset losses from its South African horse racing business with profits from its international online sports betting ventures. The group’s overall interim revenue grew 4% to R819m and aftertax profit 5% to R68m in the six months to end-January from the year-earlier period. Phumelela maintained its interim dividend at 34c. Its international arm grew revenue 37% to R174m — which would have been even better if not for the strong rand during the reporting period. The rand averaged R17.54/£ during the six months to end-January versus R21.54/£ in the comparative period, a 19% gain. This resulted in a R2.5m foreign exchange loss, the company said in its results statement. Pretax profit from its international division grew 7% to R39m. The net loss from its traditional South African horse racing business widened to R22.74m from R6.87m in the matching period. Revenue declined 2% to R645m. Part of the reason for the widening loss was an increase in prize mo...
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