| Fri 23 Oct 2009, 16:49 | | GDF - Gold Reef Resorts Limited - Trading Update for the Nine Months Ended 30 |
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GDF
GDF
GDF - Gold Reef Resorts Limited - Trading Update for the Nine Months Ended 30
September 2009 ("The Period")
Gold Reef Resorts Limited
(Incorporated in the Republic of South Africa)
Registration number 1989/002108/06
Share Code: GDF
ISIN: ZAE000028338
("Gold Reef" or "the Company")
TRADING UPDATE FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2009 ("the period")
Unaudited Unaudited
for the for the
nine months nine months
ended ended
30September 30September
2009 2008
%
change
Revenue (Rm) 3 1 643 1 598
EBITDAR (Rm) 5 633 604
EBITDAR margin (%) 38,5 37,8
EBITDAR per share (cents) 5 230,5 220,7
Earnings per share (cents) 5 86,1 81,8
Headline earnings per share 5 86,0 81,8
("HEPS") (cents)
TRADING
In a difficult trading environment, Gold Reef performed satisfactorily for the
nine months ended 30 September 2009, with increases in both revenue and earnings
before interest, tax, depreciation, amortisation and rentals ("EBITDAR").
Revenue grew 3% to R1,6bn compared to the same period last year with market
share improvement in Gauteng.
EBITDAR increased 5% to R633m. The Company continued its active focus on cost
control, growing the EBITDAR margin to 38,5%. Employee cost pressures were
offset somewhat by headcount reductions through natural attrition and operating
costs were well managed in spite of substantial increases in electricity costs
in the second half of the financial year. HEPS increased by 5% to 86,0 cents.
DEVELOPMENTS
The major refurbishment undertaken at Golden Horse Casino, which included the
gaming floor, food and beverage facilities and conferencing, was substantially
completed and included the successful implementation of smartcard gaming.
The refurbishment at Garden Route Casino is currently underway with smartcard
gaming having been successfully launched at this property too.
The renovation of the Theme Park hotel is progressing well with construction of
the main hotel building anticipated to be completed this year. The balance of
the renovation is expected to be completed in the first half of 2010.
PROSPECTS
The tough trading conditions are expected to persist into the fourth quarter of
the financial year with consumer activity likely to remain relatively subdued.
Notwithstanding this, Gold Reef remains well positioned to benefit from an
improvement in economic conditions and strengthening of consumer confidence.
Focus on costs will remain a priority and the Company will continue to pursue
development initiatives of its casino portfolio.
The financial information on which the above information is based has not been
reviewed or reported on by the Company`s auditors.
Johannesburg
23 October 2009
Sponsor
Deutsche Securities (SA) (Proprietary) Limited
Date: 23/10/2009 16:49:01 Produced by the JSE SENS Department.
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