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SUI
SUI
SUI - Sun International Limited - Business Update for the Quarter to 30
September 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 to 30 September 2011
Trading
Quarter to 30 September
2011 2010
Change
Rm % Rm
Revenue 2 287 6 2 152
Casino 1 808 7 1 682
Rooms 223 - 222
Food,beverage and other 256 3 248
EBITDA 572 (3) 590
EBITDA margin (%) 25.0 (2.4) 27.4
Casino revenue for the quarter was 7% ahead of last year with Monticello
revenue growth of 24%. GrandWest, Carnival City and Sibaya achieved
revenue growth of 5%, 4% and 8% respectively. The Group`s share of the
Gauteng and Kwazulu-Natal markets remained relatively stable compared to
last year.
Rooms revenue was in line with last year at R223 million. The group
achieved occupancy of 62%, 3 percentage points lower than the same
quarter last year at an average room rate of R946 (R889). Demand for
rooms remains very soft, particularly in Cape Town, where The Table Bay
occupancies declined from 40% last year to 30% in the same quarter this
year. Last year was also assisted by the FIFA World Cup - excluding this
business rooms revenues would have grown 7% in the quarter.
Current forward bookings indicate a slightly better trend in the next
quarter but rooms demand is expected to remain subdued for the rest of
the financial year.
The group achieved an EBITDA margin of 25.0% which was 2.4 percentage
points lower than the comparative quarter last year. Monticello EBITDA
margin increased from 16% to 19% reflecting the improvement in revenues
and operating efficiencies. The EBITDA margin in the rest of the group
was impacted by the slow revenue growth and all major cost categories
growing at rates ahead of revenue.
Gaming and Hotels and Resorts operations both increased October revenues
by 11% compared to last year.
Developments
South Africa
Wild Coast Sun
The upgrade and enhancement of the Wild Coast Sun is progressing well
and is 75% complete. The project is in its third phase and comprises the
refurbishment of an additional 182 bedrooms, main kitchen and
construction of a world class waterpark. The total estimated capital
expenditure remains at R400 million with final completion scheduled for
mid-2012.
Boardwalk
The expansion of Boardwalk continues and includes construction of the
870 bay parkade, new conference centre and 135 room five star hotel with
an estimated completion date of December 2012. The conversion of the
existing conference centre into the new smoking casino is well underway
with an anticipated opening in December 2011. The estimated cost of the
project remains unchanged at R1 billion.
Grayston Hotel
The group has entered into a long term lease for the Grayston hotel
currently operated by Southern Sun. The hotel which has 346 rooms and
excellent conference facilities will close at the end of December 2011
and undergo a full refurbishment in 2012 at an estimated cost of R250
million, which will be financed 50% by the group and 50% by the
landlord. The hotel which is scheduled to reopen in early 2013 will be
a significantly improved product which will be positioned as a four star
plus.
Directorate
Shareholders are referred to the separate announcement on the
resignation of the Chief Executive.
Outlook
Better growth in revenues is expected in the second quarter with
consequential improved EBITDA performance.
The outlook has not been reviewed or reported on by the company`s
auditors.
Sandton
8 November 2011
Sponsor:
Investec Bank Limited
Date: 08/11/2011 17:18:10 Produced by the JSE SENS Department.
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