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...

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