Sun International expects Sun City to turn around in 2019
Excluding write-downs, Sun International said it was profitable on a headline-earnings basis in 2018
Sun International expects its flagship resort, Sun City, to bounce back after a weak 2018, despite it writing-down the value of that asset. The group said on Wednesday that the resort, which was opened in 1979, had underperformed partly due to the cancellation of a few large conferences. It did not say which conferences or when they were meant to be held. In mid-December, the resort was flooded during a major hail storm. Sun International said the resort’s performance “is expected to improve during the second half of 2019 based on the rate of forward bookings”.
The group’s shares rose 6.1% to R58.99 on Wednesday morning after the hotel, casino and resort operator said its loss in the year ended December would narrow. Its basic loss per share for the year would be between 5c and 7c, versus a loss of 248c per share in 2017. The company said it had impaired the carrying value of its Sun City and certain Panama assets by R337m. Excluding the write-downs and other one-offs, Sun Int...