| Thu 14 May 2009, 15:15 | | SUI - Sun International Limited - Business Update for the Quarter and Nine |
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SUI
SUI
SUI - Sun International Limited - Business Update for the Quarter and Nine
months to 31 March 2009
Sun International Limited
(Incorporated in the Republic of South Africa)
(Registration number 1967/007528/06)
Share code: SUI & ISIN: ZAE000097580
Business Update for the Quarter and Nine months to 31 March 2009
Trading
Trading conditions for the quarter continued to deteriorate with overall revenue
growth of 6% over last year, and a decline of 1% if revenue from the new
Monticello casino is excluded.
Quarter to 31 March Nine months to 31 March
2009 Change 2008 2009 Change 2008
Rm % Rm Rm % Rm
Revenue 1 995 6 1 887 6 017 6 5 684
Casino 1 541 7 1 440 4 615 6 4 371
Rooms 238 (2) 243 711 7 664
Food, beverage and 216 6 204 691 6 649
other
EBITDA 648 (8) 704 2 015 (4) 2 093
EBITDA margin (%) 32,5 37,3 33,5 36,8
With regard to the major casino operations, Carnival City and Sibaya performed
satisfactorily in the current economic conditions, with revenue growth of 8% and
1% respectively. GrandWest and Boardwalk continue to be impacted by declining
local economic conditions with revenues 12% and 11% below last year,
respectively.
In the hotel and resorts operations, revenues at Sun City were in line with the
previous year, while revenues at Table Bay and Zambia declined 3% on last year.
The average room occupancy for the quarter at 71% was 7 percentage points down
on the previous year.
The overall EBITDA margin of 32,5% was 4,8 percentage points lower than the
comparative quarter last year, mainly due to current revenue levels and a loss
incurred by Monticello in the quarter. Excluding Monticello, the EBITDA margin
would have been 35,2% for the quarter.
Monticello achieved revenues in the quarter of R132 million, a 36% growth on the
opening quarter. Sign ups to the MVG customer loyalty programme continue to
accelerate and promotional activity has been increased to create additional
awareness of the casino offering. April 2009 revenue at R51 million showed
further improvement being 16% higher than the average monthly revenue achieved
during the quarter under review. The EBITDA loss for the quarter of R8 million
was significantly lower than the opening quarter loss of R23 million.
Developments
The Lesotho Sun is undergoing a major refurbishment of the casino, rooms,
conference centre and other public areas including the lobby, bars and
restaurants. The project is anticipated to be completed in November 2009 at a
total estimated cost of R140 million.
Eastern Cape casino licences
The Wild Coast Sun`s casino licence application was approved and a new licence
will be granted for a further period of ten years by the Eastern Cape Gambling
and Betting Board (ECGBB) on acceptance of the licence conditions. The group has
not been able to agree certain of these conditions with the ECGBB in the 30 day
period allowed. The ECGBB has advised the Wild Coast Sun to expect a written
notification of the appointment of a statutory tribunal which will review the
licence award.
The Boardwalk`s casino licence in Zone 1 of the Eastern Cape expires in October
2010. A bid for a new fifteen year casino licence was submitted on 30 January
2009 which includes plans for a five star hotel and conference centre, expanded
gaming facilities and covered parking at an estimated cost of R1 billion. The
announcement of the preferred bidder is expected in August 2009.
Chile
The construction of the retail and entertainment components and the 155 room
hotel at the Monticello casino is progressing well, with the retail and
entertainment components scheduled for completion in August 2009 and the hotel
expected to open in October 2009. The overall projected capital expenditure will
marginally exceed the projected US$236 million.
Nigeria
The process of acquiring the group`s 49,5% interest in the company which owns
and operates the Federal Palace Hotel and the Federal Palace Towers Hotel on
Victoria Island, Lagos is well underway. The US$24 million project which will
include the construction of a temporary casino in the Federal Palace Hotel and
minor upgrades to the existing Federal Palace Towers Hotel will commence
shortly.
Outlook
Trading at the group`s gaming operations for the remainder of the year is
expected to remain subdued, whilst the local and global economic conditions will
continue to negatively impact the hotels and resorts.
14 May 2009
Sponsor: Investec Bank Limited
Date: 14/05/2009 15:15:40 Produced by the JSE SENS Department.
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