Acquisitive growth helped hotel and casino group Sun International’s interim revenue jump 31% to R7.67bn, but attributable profit declined 29% to R229m.
No interim dividend was declared.
"Given the difficult trading conditions and the need to complete strategic group initiatives, particularly Time Square, and the need to reduce debt levels, the board has decided not to declare a dividend for the period under review," Sun International said on Monday morning.
These will be Sun International’s last interim results covering the six months to end-December. The current financial year will end on December 31 to comply with Chilean regulations following the creation of Sun Dreams by merging Sun International’s Latin American business with Chilean group Dreams.
"Revenue growth in Chile has slowed over the past six months with Sun Dreams’ revenue up 1% in local currency. Monticello was impacted by the relocation of the toll road to the Santiago side of Monticello, making it more costly to reach the property, whilst Iquique, which is located in a copper mining region, was impacted by the weak copper price," the results statement said.
Acquisitive growth in the reporting period also came from raising its stake in GPI Slots to 70% by acquiring a further 19.9% from Grand Parade Investments.
But overall gambling revenue from its South African casinos fell 2.7%.
"The group’s South African revenue continues to be affected by difficult trading conditions linked to an uncertain macroeconomic environment and reduced consumer spend. South African comparable revenue (excluding GPI Slots) was flat off the back of lower casino revenue. Sun City and Table Bay continued to benefit, however, from an increase in international tourism, which helped boost rooms’ revenue by 14%," Sun International said.