Sun International still shines brightly
But no payout for investors as gaming group closes loss-making operations and reels under Time Square’s sad performance
It comes as no surprise that Sun International has scrapped its full-year dividend.The gaming and hotels group is, after all, set to release the terms of a R1.5bn rights offer with borrowings at R15bn as of the year ended December, R11.4bn of that attributable to its SA balance sheet.Whether the rights offer will be enough to give Sun International some breathing room is another matter.The group’s results, released on Monday, read like a catalogue of bad investment choices. It’s been forced to close its Sun Nao casino in Colombia, as well as its nascent International VIP businesses here and in Panama, for which it had high hopes not even two years ago.Sun has applied to the Eastern Cape gaming board to restructure its Boardwalk casino, and has taken the decision to close the Fish River Sun. Worst of all, its new Menlyn, Pretoria-based property, Time Square, which opened in April 2017 and on which it has lavished R4.2bn, is trading "well below expectations".For the period under revie...
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