Sun International cuts Sun City valuation by R306m after loss
Increased drop hits tables, while opening of a third electronic bingo terminal outlet in Rustenburg keeps slots under pressure in the local market
Sun International has reduced the value of its flagship asset, Sun City, by R306m after that unit slipped into an operating loss in 2018. Sun City’s income fell 3% to R1.7bn in the year ended December, while that asset made an adjusted operating loss of R8m, from a profit of R26m in 2017. The resort is Sun International’s third largest by income, after GrandWest and Monticello. “Tables were impacted by a lower drop, while slots continued to come under pressure in the local market following the opening of a third electronic bingo terminal outlet in Rustenburg in October 2017,” the group said of its Sun City asset. Revenue from rooms there declined 1% as occupancies fell, partly because of the severe hailstorm in mid-December 2018, which resulted in the resort temporarily losing a number of rooms. Included in Sun City’s results was a “business interruption claim” of R25m relating to the storm.
Sun International said group income in 2018 rose 7% to R16.4bn, while attributable pro...