| Wed 12 May 2010, 12:00 | | 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 2010
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 2010
Trading
Quarter to 31 March Nine months to 31 March
2010 Change 2009 2010 Change 2009
Rm % Rm Rm % Rm
Revenue 1,969 (1) 1,995 6,072 1 6,017
Casino 1,535 - 1,541 4,764 3 4,615
Rooms 219 (8) 238 628 (12) 711
Food,beverage 245 - 216 680 (2) 691
and other
EBITDA 594 (8) 648 1,805 (10) 2,015
EBITDA margin (%) 30.2 (2.3) 32.5 29.7 (3.8) 33.5
Revenue for the quarter at R2 billion was 1% below last year. Gaming revenue
and food, beverage and other revenue was in line with last year, while rooms
revenue was 8% down on last year due to lower occupancies. Excluding
Monticello, comparable revenue was 2% down on last year.
Due to the Chile earthquake in the early hours of Saturday 27 February 2010,
the group results only include trading for Monticello up to that date which
was revenue of R139 million and EBITDA of R8 million. The impact on February
was further affected by missing the closing day of the quarterly promotion.
Comparable gaming revenue was in line with last year. Boardwalk and Sibaya
achieved revenue growth of 7% and 4% respectively, while GrandWest and
Carnival City achieved revenue growth of 1%. The group`s share of the Gauteng
market increased by 0.9 percentage points to 21.4% over the same quarter last
year. Sibaya`s share of the gaming market in Kwazulu-Natal for the quarter
was marginally down on last year at 35.8% (35.9%).
Sun City`s revenue declined by 4%, while achieving room occupancy of 68%, 6
percentage points lower than last year. The Table Bay achieved occupancy of
62% (76%) resulting in a decline in revenue of 14%. The Zambian properties
achieved an aggregate occupancy of 45% (49%) at an average room rate of
US$204. The overall occupancy for the quarter at 65% was 6 percentage points
below last year.
The group achieved an EBITDA margin of 30.2% which was 2.3 percentage points
lower than the comparative quarter last year. The lower margin is due to the
decline in comparable revenue and inflationary increases in operating costs.
Excluding Monticello, the EBITDA margin was 32.1% for the quarter, 3.1
percentage points lower than last year.
Developments
South Africa
The upgrade and enhancement of the Wild Coast Sun is well under way. The
upgrade and expansion of the casino floor was completed in December 2009 and
the rooms refurbishment commenced in January 2010. The project will be
completed in phases through to mid-2012 in order to minimise disruption to
the business. Due to the delays in awarding the licence and this approach,
the costs have escalated to an estimated R400 million.
Chile
Property damage due to the earthquake is currently estimated at US$10
million. Repair works have already commenced and the facilities are expected
to re-open early July 2010. The business interruption claim is currently
being negotiated with insurers, and together with the property damage claim
is subject to an US$8 million deductable.
Nigeria
The 200-slot and 8-table casino at the Federal Palace hotel was opened during
December 2009 and the conference facility during January 2010 at a cost of
US$19 million. Casino revenue of R12 million was achieved in the quarter.
The process of acquiring the balance of the shares and ultimately owning a
49% interest is nearing completion.
Boardwalk casino licence
The Boardwalk`s casino licence in Port Elizabeth expires in October 2010. The
Boardwalk was announced as the preferred bidder during September 2009. The
conditions attached to the licence are still awaited from the Eastern Cape
Gambling and Betting Board. The project includes plans for a five star hotel
and conference centre, expanded gaming facilities and a new parkade at an
estimated cost of R1 billion. The project is likely to be completed in late
2012.
Outlook
Trading conditions have stabilised and together with the anticipated benefits
of the 2010 World Cup, growth in comparable revenue is expected for the
remainder of the year. Comparable revenues for April 2010 were 2% above April
2009, a slight improvement on the decline experienced for the quarter to
March.
The outlook has not been reviewed or reported on by the company`s auditors.
12 May 2010
Johannesburg
Sponsor: Investec Bank Limited
Date: 12/05/2010 12:00:02 Produced by the JSE SENS Department.
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