Tsogo Sun feels squeeze from volatile trade
Gaming and hotel group Tsogo Sun reported on Wednesday that its first-half adjusted headline earnings held steady at R842m on a year-on-year basis as tough trading conditions took their toll.
Total income in the six months to end-September rose 8% to R6.3bn from the year-earlier period as the gaming division reported low single-digit growth in revenue and profits.
Gaming win grew 3% on the previous period.
Tsogo said the hotel industry in SA had continued to experience a recovery from the dual impact of depressed demand and oversupply.
Overall revenue for the South African hotels division was up 22% to R1.5bn, partly due to the inclusion of the Holiday Inn Sandton and Crowne Plaza Rosebank hotel businesses from March 2016.
The offshore division of hotels achieved revenue of R337m, which was flat on the year-earlier period.
"Trading during the first half of the financial year remained volatile and reflected continued pressure on the consumer due to the macroeconomic environment and weak sentiment," the company said in a statement.
The company spent R1.3bn in the review period on various expansionary projects, including acquiring a 20% stake in the Grand West and Worcester casinos in the Western Cape earlier in 2016
The interim dividend per share was up 10% to 34c.