| Thu 4 Nov 2010, 15:46 | | SUI - Sun International Limited - Business update for the quarter to |
|
SUI
SUI
SUI - Sun International Limited - Business update for the quarter to
30 September 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 to 30 September 2010
Trading
Quarter to 30 September
2010 Change 2009
Rm % Rm
Revenue 2 152 11 1 942
Casino 1 682 10 1 536
Rooms 222 19 186
Food, beverage and other 248 13 220
EBITDA 590 11 530
EBITDA margin (%) 27.4 0.1 27.3
Revenue for the quarter at R2.2 billion was 11% ahead of last year. Gaming
revenue was 10% ahead of last year whilst rooms revenue and food, beverage and
other revenue were 19% and 13% ahead of last year respectively. Excluding
Monticello and the Federal Palace, comparable revenue was 6% higher than last
year with casino 6% ahead and rooms 9% ahead.
GrandWest achieved revenue growth of 6%, while Carnival City, Sibaya and
Boardwalk achieved revenue growth of 9%. Monticello`s revenue increased by 41%
on last year to R261 million, with gaming revenue increasing by 34%. The group`s
share of the Gauteng market increased by 0.2 percentage points to 19.9% over the
same quarter last year. Sibaya`s share of the gaming market in Kwazulu-Natal
increased by 1.3 percentage points on last year to 35.7%.
Rooms revenue showed reasonable growth due primarily to the effects of the FIFA
2010 World Cup. Whilst the group occupancy was 4 percentage points lower at 65%,
the average room rate was 16% higher reflecting the strong rates achieved during
the tournament. Subsequently demand for hotels and resorts has softened further
with revenue generally showing declines on last year.
The group achieved an EBITDA margin of 27.4% which was marginally ahead of last
year reflecting the continuing focus on controlling costs despite the
significant increases in energy and other property costs.
Developments
Wild Coast Sun
The next phase of the upgrade programme, the refurbishment of an additional 57
rooms, will be completed by December 2010. Phase 3 begins in January 2011 and
will consist of the refurbishment of 182 bedrooms and the convention centre as
well as the construction of a new water park. The total project will be
completed by mid-2012 at an unchanged capital cost of R400 million.
Windmill
Construction of the new Prive area commenced in May 2010 and will be completed
by the end of November 2010. This includes both smoking and non-smoking
facilities, a lounge and separate entrance from a new private parking area. The
total capital expenditure on this project is estimated at R35 million.
Kalahari Sands
The scope of work comprises the refurbishment of 173 hotel rooms, refurbishment
of the buffet restaurant and minor infrastructure upgrades. The refurbishment
of the first four floors will be completed by December 2010. Total capital
expenditure on this project is estimated at R80 million.
Boardwalk casino licence
Following the conclusion of an extended consultation process, the Eastern Cape
Gambling and Betting Board (ECGBB) issued a new casino license to Emfuleni
Resorts to operate The Boardwalk Casino and Entertainment World for a period of
15 years, effective 3 October 2010. The license conditions include a R1 billion
expansion and refurbishment of the property, including a five star hotel,
conference centre, parkade and expanded gaming facilities. Construction will
commence in January 2011 and the completion is forecast to be December 2012.
Outlook
Demand within the gaming and particularly the hospitality industries is
anticipated to remain challenging in the foreseeable future. Notwithstanding
this, we anticipate growth in revenue from the existing operations in addition
to greater contributions from Monticello and the Federal Palace.
The outlook has not been reviewed or reported on by the company`s auditors.
4 November 2010
Johannesburg
Sponsor: Investec Bank Limited
Date: 04/11/2010 15:46:01 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
