| Wed 11 May 2011, 15:00 | | 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 2011
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 2011
Trading
Quarter to 31 March Nine months to 31
March
2011 Change 2010 2011 Change 2010
Rm % Rm Rm % Rm
Revenue 2 181 11 1 969 6 674 10 6
072
Casino 1 703 11 1 535 5 197 9 4
764
Rooms 233 6 219 697 11 628
Food, beverage and 245 14 215 780 15 680
other
EBITDA 636 7 594 1 907 6 1
805
EBITDA margin (%) 29.2 (1.0) 30.2 28.6 (1.1) 29.7
Revenue for the quarter at R2.2 billion was 11% ahead of last year, however
comparable revenue, excluding the effects of disrupted trade at Monticello in
the prior year and the inclusion of the Federal Palace, was 3% ahead of last
year. Casino revenue was 11% ahead of last year primarily as a result of the
increased revenue from Monticello. Rooms revenue increased by 6%, while food,
beverage and other revenue was 14% ahead of last year.
GrandWest, Boardwalk and Sibaya achieved revenue growth of 4%, 3% and 6%
respectively, while Carnival City revenue declined 6% this quarter.
Monticello achieved revenue growth of 9% for the quarter after adjusting for
the earthquake disruption.
Sun City revenue was 4% ahead of last year at an occupancy of 64%, 3
percentage points below last year. The unit also achieved an average room rate
of R1 364, 2% above last year. The Table Bay achieved an occupancy of 59%
(62%) and an average room rate of R2 097 (R 2 221) resulting in a 5% decline
in revenue. The Zambian hotels achieved an aggregate occupancy of 43% (45%)
and average room rate of US$198. The group`s overall occupancy for the quarter
of 65% was 1 percentage point below last year.
The group achieved EBITDA of R636 million, 7% ahead of last year at an EBITDA
margin of 29.2% (30.2%).
Developments
South Africa
Wild Coast Sun
Phase 2 of the Wild Coast Sun refurbishment project was completed in December
2010, taking the total complement of newly refurbished rooms to 111. Phase 3
is now underway which consists of the refurbishment of a further 182 bedrooms
and the convention centre, and the construction of the new waterpark. The
total estimated capital expenditure remains at R400m with final completion
scheduled for mid 2012.
Boardwalk
The expansion of Boardwalk commenced in February 2011. The project includes a
five star hotel and conference centre, expanded gaming facilities and a new
parkade at an estimated cost of R1 billion. The project is scheduled for
completion in December 2012.
Africa
Kalahari Sands
The refurbishment of 173 hotel rooms, buffet restaurant and kitchen is
progressing well and should be completed by October 2011 at a projected cost
of R85 million.
SunWest Exclusivity
No announcements have been made by the Provincial Government of the Western
Cape on the exclusivity of the Western Cape casino licences and accordingly
there remains insufficient information available to assess the possible
impacts on GrandWest`s business.
Outlook
Hospitality revenues continue to be subdued and are expected to remain so for
the balance of the year. Gaming revenues are showing signs of improvement at
most units. Monticello and the Federal Palace continue to increase their
contributions to the group.
The outlook has not been reviewed or reported on by the company`s auditors.
11 May 2011
Johannesburg
Sponsor: Investec Bank Limited
Date: 11/05/2011 15:00:02 Produced by the JSE SENS Department.
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