Sun International expects big increase in interim earnings
Hotel and gaming group Sun International expects headline earnings per share (HEPS) for the six months to end-December 2016 to be between 155% and 165% higher than the previous comparable period.
HEPS are expected to be between 260c and 305c compared with a loss of 473c before.
The group said that the Dreams and GPI Slots operations were now consolidated and contributed to a 30% increase in revenue and 24% increase in earnings before interest, tax, depreciation and amortisation (ebitda) over the year-earlier period.
However, the group said its South African casino operations faced difficult trading conditions linked to an uncertain macroeconomic environment and reduced consumer spend. As a result, South African casino revenue declined by 2.7% following weaker than expected December trading.
Sun City and Table Bay continued to benefit from an increase in international tourists, which helped to boost overall rooms revenue by 14%; ebitda for the group’s South African casino, hotel and resort operations, excluding International VIP business (IB), was down 8%.