market watch
MARC HASENFUSS: Sun International eclipsed by debt
Debt appears to be hanging heavily on the saggy share price of gaming giant Sun International. The share looks fairly interesting at these levels — especially with the new Times Square casino at Menlyn chipping in to the bottom line this financial year. Times Square will be the second-largest casino in SA after Sun International’s Cape Town cash cow, GrandWest. Analysts expect Times Square — once all the developments are complete — to contribute as much as R750m at earnings before interest, tax, depreciation and amortisation (Ebitda) level. That seems reasonable, with GrandWest generating about R900m in Ebitda in the last "proper" financial year to end-June 2016, and R440m in the abridged (July 1 to December 31) financial year that heralded Sun’s change of financial year-end.
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