MARC HASENFUSS: Tsogo Sun’s punt pays off
The casino and hotel group must be thanking its lucky stars that it managed to snatch the alternative gaming operations from Niveus Investments
Casino and hotel group Tsogo Sun must be thanking its lucky stars that it managed to snatch the alternative gaming operations from Niveus Investments. Initially there was some consternation about the deal, as the alternative gaming formats were beginning to provide some stiff competition for the traditional bricks-and-mortar casinos in urban areas. But so far Tsogo appears to have ensured a viable co-existence between its competing gaming formats. In fact, the alternative gaming assets are chipping in very nicely. The Galaxy electronic bingo terminals (EBTs) and Vukani limited-payout machine (LPM) operations were consolidated only in Tsogo’s results from November 20 2017. Having these operations pumping cash flows for the full 12 months to the end of March has been most beneficial for Tsogo, whose core casino operations are trundling along in an environment in which discretionary spending is falling. Galaxy generated R855m in revenue and R247m in earnings before interest, tax, depre...
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