Tsogo Sun Gaming warns of writedowns equivalent to R2bn market capitalisation
The group expects profits to fall by about a third in its year to end-March
The share price of casino operator Tsogo Sun Gaming was at a record low on Friday, after it warned it has seen writedowns about equivalent to its R2bn market capitalisation in its year to end-March.
The group said in a trading update it had seen writedowns of intangibles of R1.9bn, writedowns of property, plant and equipment and right-of-use assets of R105m, and fair value losses on investment properties of R81m, without going into further detail.
An intangible asset is an accounting term referring to assets that are not physical, for example the value of a company’s brand in the eyes of the consumer.
The group said it expected headline earnings per share (Heps) to fall by between 30% and 35% compared with the prior period’s 182.2c.
Tsogo was broken into two parts in 2019, namely Tsogo Sun Hotels and Tsogo Sun Gaming, which are now separately listed.
In morning trade on Friday Tsogo Gaming’s share price was down 5.72% to R1.82, having lost almost 90% so far in 2020.