Sun City the star of the Sun group
Refurbishment pays off, but Times Square results a kick in the solar plexus
Gaming and hotels giant Sun International saw a resurgent performance from Sun City — one of its oldest properties — but reported an underwhelming start at its new Times Square mega-casino precinct. Results released on Monday covering the year to end December showed Sun City as the star performer, with a 7% increase in revenue, translating into a 58% gain in ebitda (earnings before interest, tax, depreciation and amortisation) at R318m. Sun City benefited from extensive refurbishments, with casino revenue up 11% and hotel occupancy increasing from 68% to 72%, with an average room rate hike of 4%. Sun will be desperately hoping for a marked improvement from Times Square after a soft start to trading. Sun has already spent R4.2bn on this casino and entertainment precinct in Menlyn near Pretoria, which is one of the main reasons the company is contemplating a rights offer to reduce debt levels that have stretched over R11bn in SA. The Times Square complex generated revenue of R827m for...
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