Sun International half-year diluted adjusted HEPS to be 35%-45% lower
Hotel and gaming group Sun International expects diluted adjusted headline earnings per share (diluted AHEPS) for the six months to end-December 2016 to be between 35% and 45% lower than the previous comparable period.
Diluted AHEPS are expected to be between 189c and 223c compared with 344c before.
HEPS are likely to be between 260c and 305c or 155% to 165% higher, when compared to the corresponding period’s reported loss of 473c per share.
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 14%. Ebitda for the group’s South African casino, hotel and resort operations, excluding International VIP business, was down 8%.