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TSH
TSH
TSH - Tsogo Sun Holdings Limited - Condensed unaudited interim results For the
six months ended 30 September 2011
Tsogo Sun Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1989/002108/06)
Share code: TSH ISIN: ZAE000156238
("Tsogo Sun" or "the company" or "the group")
CONDENSED UNAUDITED INTERIM RESULTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2011
COMMENTARY
INTRODUCTION
The merger of Tsogo Sun Holdings (Pty) Ltd ("TSH (Pty) Ltd") and Gold Reef
Resorts Ltd ("Gold Reef") and the effective reverse listing of the Tsogo group
via the acquisition by Gold Reef of the entire issued share capital of TSH (Pty)
Ltd through the issue of new shares ("the consideration shares") to Tsogo
Investment Holding Company (Pty) Ltd ("TIH") and SABSA Holdings (Pty) Ltd
("SABSA") was concluded on 24 February 2011.
In terms of IFRS 3 - Business Combinations (Revised), the transaction is a
reverse acquisition as the shareholders of TSH (Pty) Ltd became the majority
shareholders of Gold Reef. Accordingly, TSH (Pty) Ltd is treated as the acquirer
for accounting purposes, whilst Gold Reef is the legal acquirer and remains the
listed entity. Shareholder approval was obtained to rename Gold Reef to Tsogo
Sun Holdings Ltd ("Tsogo Sun") at the Annual General Meeting held on 15 June
2011. The effective date of the name change occurred on 5 August 2011, and has
been registered by the Companies and Intellectual Property Commission.
The condensed consolidated income statement and cash flow statement for the six
months ended 30 September 2011 represent the consolidated results of the merged
group. The comparative information for the prior period represents the
consolidated results of TSH (Pty) Ltd for the six months ended 30 September
2010.
COMMENTARY
The past six months have seen the integration of the Gold Reef properties into
the Tsogo group.This process has proceeded smoothly and is largely complete. The
group has continued to pursue investments in terms of its stated growth strategy
resulting in the recently announced acquisition of the hotel and office
development in Rosebank, that previously traded as the Grace, for R85 million.
The group has also reached agreement for the acquisition of an additional 16.5%
effective interest in the Suncoast Casino for R510 million, bringing the total
ownership of that operation to 90%. This acquisition remains subject to approval
by the KwaZulu-Natal Gambling Board. On 26 September 2011, Tsogo Sun Emonti
(Pty) Ltd, a subsidiary company of the group, started trading under its new
gaming license awarded after a bidding process and accordingly construction work
has begun on the R400 million redevelopment of the Hemingways casino in terms of
the bid commitments.
The first half of the financial year saw accelerated growth in revenue across
many of the group`s casinos. Hotels, which benefited from the 2010 FIFA World
Cup ("World Cup") in June and July 2010, has shown revenue decline on the prior
period, as would be expected, although the effect is exaggerated in the six-
month reporting period and will have less impact on the full year.
The underlying operations of the group remain highly geared towards the South
African consumer (in gaming) and the corporate market (in hotels) with both
sectors experiencing difficult trading conditions and increased administered
costs. The group is poised for growth if these sectors of the South African
economy improve.
Regulatory risks represent a threat to the group with possible changes to tax
regulations and an increased cost burden of compliance with various imposed
regulations being the most significant.
The group continues to engage with the various regulatory bodies and other
Government departments to ensure that proposed changes are warranted and capable
of being implemented without having a negative impact on both current and new
investment in the industry and consequently on employment levels.
Total income of R4.4 billion was 38.0% above the prior period, assisted by the
inclusion of R1.2 billion income from the Gold Reef merger. Like-for-like
growth in revenue (including Gold Reef) was 1% which was adversely impacted
by the non-recurrence of World Cup related revenues.
Earnings before interest, income tax, depreciation, amortisation, property
rentals, long-term incentives and exceptional items ("EBITDAR") at R1.6 billion
reflected a 33.6% increase on the prior period. Additional EBITDAR from Gold
Reef of R453 million, as well as foreign exchange gains of R20 million in the
current period assisted this growth. Like-for-like EBITDAR (including Gold Reef)
was flat on the prior period again impacted by the non-recurrence of World Cup-
related earnings. The overall group EBITDAR margin of 37.2% is 1.2% below the
prior period, but a satisfactory achievement in the current environment.
Gauteng recorded provincial growth in gaming win of 3.3% for the six months
ended 30 September 2011 over the prior period. Montecasino and Gold Reef City
casinos recorded gaming win growth of 7.3% and 8.4% respectively for the six
months, while Silverstar casino recorded a decline of 1.8% for the same period.
The results of Montecasino and Gold Reef City casinos are particularly
satisfying as these units experienced good footfall during the prior period
World Cup. Good cost control resulted in improved EBITDAR margins being recorded
at all three units.
KwaZulu-Natal provincial gaming win grew by 8.0% for the six months ended 30
September 2011 over the prior period with the Suncoast Casino and Entertainment
World reflecting growth of 5.1% in gaming win with Golden Horse casino and
Blackrock casino reflecting growth of 12.7% and 11.4% respectively for the six
months, showing strong demand in their relevant catchment areas.
EBITDAR margins at all three KwaZulu-Natal casinos also reflected growth on the
prior period.
Mpumalanga reported growth in provincial gaming win of 8.1% for the six months
ended 30 September 2011. The Ridge casino in Emalahleni and the Emnotweni casino
in Nelspruit reported growth in gaming win of 6.7% and 6.6% respectively for the
six months. EBITDAR margin improvement was achieved at Emnotweni, with the Ridge
experiencing a decline in margin as a result of improved hotel trading diluting
the high margin gaming business to some extent.
The Eastern Cape provincial gaming win grew marginally by 0.3% for the six
months ended 30 September 2011 over the prior period. However, despite the
difficult conditions in the East London economy, Hemingways reported growth in
gaming win of 4.2%, and continues to benefit from the attractions associated
with Hemingways Mall which opened in 2009. EBITDAR margin declined marginally on
the prior period.
The Western Cape reported growth in provincial gaming win of 4.2% for the six
months ended 30 September 2011 over the prior period. The Caledon Hotel and Spa
and Garden Route casino in Mossel Bay reported growth of 8.7% and 2.4%
respectively for the six months, while the Mykonos casino in Langebaan reported
a decline in gaming win of 1.0% for the same period.
The Western Cape market continues to be impacted by poor economic fundamentals,
particularly in the leisure-based coastal areas outside of the larger Cape
metropole. EBITDAR margin improvement was achieved in Caledon with margins at
Garden Route flat on the prior period and a margin decline was reported at
Mykonos.
The Goldfields casino in the Free State performed well in the six months with
growth in gaming win of 10.3% on the prior period and an improvement in EBITDAR
margin.
Other gaming operations, consisting of the Sandton Convention Centre, the Stay
Easy Century City hotel and head office costs, reflected a loss of R76 million,
R46 million adverse to the prior period mainly due to non-repeating World Cup-
related trading at the Sandton Convention Centre and the inclusion of Gold Reef
central costs.
The hotel industry in South Africa is still experiencing the dual impact of
depressed demand and over supply, with overall industry occupancies of around
52% for the six months to September 2011. The group`s hotels are likewise
affected. However, as a result of the strong sales and distribution channels
available within the group, a significant occupancy and rate premium is being
achieved in the segments in which the group operates. With little recovery in
the core corporate market, the group`s system-wide occupancies remain under
pressure in South Africa at 58.9% (2010: 59.3%). Average Room Rates in the total
South African operations declined by 16% to R760, with virtually all the decline
attributable to the higher achieved rates during the World Cup in the prior
period. Overall revenue declined by 9% to R779 million during the six months.
Operating costs were well controlled with a 3% increase on the prior period,
despite regulated utility costs and property rates increases assisted by
incremental overhead incurred for the World Cup not being repeated. EBITDAR
declined 31% to R214 million at a margin of 27.5%.
The offshore division of hotels achieved total revenue of R153 million for the
six months, representing a 21% improvement on the prior year, assisted by the
inclusion of Southern Sun Nairobi as a leased hotel (previously managed) with
effect from 1 August 2010. EBITDAR (pre- foreign exchange gains) of R43 million
was achieved.
The Rand weakness towards the end of September 2011 impacted both the
translation of USD and Euro earnings streams as well as resulting in a R20
million foreign exchange gain on the translation of offshore monetary items,
being mainly cash and loans to associates.
Combined South African and offshore hotel trading statistics, reflecting the
Tsogo Sun gaming hotels as owned and excluding hotels managed on behalf of third
parties, are as follows:
30 September 30 September
2011 2010
Occupancy (%) 59.5 58.5
Average Room Rate (R) 786 917
Revpar (R) 467 537
Rooms available (`000) 1 662 1 585
Rooms sold (`000) 989 927
Rooms revenue (Rm) 777 850
The corporate division reflected EBITDAR of R4 million as the group`s captive
insurance operations again benefited from the absence of any significant claims.
All operating cost categories for the six months are not comparable to the same
period in the prior year as a result of the consolidation of Gold Reef. However
the group continues to exercise strict cost control and ensure that any
synergies available from the merger are achieved. Net finance costs are flat on
the prior period despite the take on of the additional Gold Reef debt, as the
cash generated by the group has reduced steady state borrowing levels.
The group`s share of associate and joint venture profits at R3 million for the
six months reflected a 91% decrease as the investment in Gold Reef was equity
accounted in the prior period.
The effective tax rate for the period under review, at 36.3% is affected by,
inter alia, the Secondary Tax on Companies ("STC") impact of R67 million on the
final dividend for the year ended 31 March 2011, declared on 19 May 2011 and the
implementation of the Tsogo Sun Emonti (Pty) Ltd related new ownership
structure. The comparative effective tax rate of 30.8% is assisted by there
being no STC charge in the prior period. The group`s long-term effective tax
rate is expected to be higher than the statutory rate as a result of non-
deductible expenditure such as casino building depreciation, preference share
dividends relating to preference share capital of subsidiaries of the group, as
well as STC, until replaced by the proposed tax on dividends.
Group adjusted headline earnings for the six months at R550 million is 19% above
the prior period. In determining the closing and weighted average number of
shares for the period under review and the prior comparative period, the group
has used the consideration shares as the appropriate number of shares for
calculating the earnings per share ("EPS"), headline earnings per share ("HEPS")
and adjusted headline earnings per share ("adjusted HEPS") for TSH (Pty) Ltd and
the actual shares in issue post the issue of the consideration shares, excluding
treasury shares, for the combined group. Adjusted HEPS is 4% below the prior
period for the six months ended 30 September 2011, impacted by the effect of the
World Cup, and notably the variance in STC as described above, which amounted to
5.9 cents per share in its own right.
Cash generated from operations during the six months was R1.5 billion, an
increase of 32% on the prior year as a result of the Gold Reef merger. Cash
flows utilised for investment activities of R234 million consisted mainly of
capital maintenance expenditure of R195 million, reinvestment in the Hemingways
casino in terms of the new licence of R14 million, part settlement of the
contingent consideration for the Millennium acquisition of R24 million and other
minor investments.
Interest-bearing debt net of cash at 30 September 2011 totalled R4.0 billion, a
decrease of R139 million over the 31 March 2011 balance, with R584 million paid
in dividends to group and non-controlling shareholders during the six months.
PROSPECTS
Despite a difficult trading environment for gaming and hotels, the group remains
highly cash- generative and has significant opportunities to invest capital in
its growth strategy at attractive rates of return. The ability to continue to
pursue such investments will depend on the final outcome of, and impact from,
the variety of proposed regulatory changes by Government.
DIVIDEND
The board of directors has declared an interim cash dividend of 20 (twenty)
cents per share. The dividend has been declared in South African currency and is
payable to shareholders recorded in the register of the company at close of
business on Friday, 9 December 2011.
In compliance with the requirements of Strate, the electronic and custody system
used by the JSE Limited ("JSE"), the following dates are applicable:
2011
Last date to trade cum dividend Friday, 2 December
Shares trade ex dividend Monday, 5 December
Record date Friday, 9 December
Payment date Monday, 12 December
Share certificates may not be dematerialised or rematerialised during the period
Monday, 5 December 2011 to Friday, 9 December 2011, both days inclusive.
On Monday, 12 December 2011 the cash dividend will be electronically transferred
to the bank accounts of all certificated shareholders where this facility is
available. Where electronic funds transfer is not available or desired, cheques
dated 12 December 2011 will be posted on that date. Shareholders who have
dematerialised their share certificates will have their accounts at their
Central Securities Depository Participant ("CSDP") or broker credited on Monday,
12 December 2011.
CHANGE IN DIRECTORATE
In terms of the announcements released on 10 May 2011 and 18 July 2011,
shareholders were advised that:
- Mr Jabu Mabuza would retire from his executive responsibilities as Chief
Executive Officer with effect from 30 September 2011 but would remain on the
board of directors of the company as a Non-executive Director and assume the
position of Deputy Chairman;
- Mr Mabuza would be succeeded by Mr Marcel von Aulock, the then Chief Financial
Officer; and
- Mr Rob Huddy would, with effect from 1 October 2011, succeed Mr von Aulock as
Chief Financial Officer.
Shareholders are referred to the announcement released on SENS on 1 November
2011 in terms of which notice was given that, at a meeting of the board of
directors of the company held on 31 October 2011, Mr Rob Huddy was appointed to
the board of directors as an Executive Director with effect from 31
October 2011.
In addition, given the customary practice of a number of listed companies of
limiting the number of Executive Directors on their Boards to the Chief
Executive Officer and Chief Financial Officer, Messrs Rob Collins and Graham
Wood stepped down as Executive Directors with effect from 31 October 2011.
Messrs Collins and Wood will continue to serve as part of the Executive
Committee of the Tsogo Sun group. The result of these changes is that the board
of directors of Tsogo Sun now comprises eleven Non-executive Directors, which
includes three Independent Non-executive Directors of which one is a Lead
Independent Non-executive Director, and two Executive Directors.
PRESENTATION
Shareholders are advised that a presentation to various analysts and investors
which provides additional analysis and information will be available on the
group`s website at www.tsogosunholdings.com.
MN VON AULOCK RB HUDDY
Chief Executive Officer Chief Financial Officer
17 November 2011
NOTES TO THE CONDENSED UNAUDITED
CONSOLIDATED INTERIM FINANCIAL
STATEMENTS
1. BASIS OF PREPARATION
The condensed unaudited interim financial statements for the six months ended 30
September 2011 have been prepared in accordance with IAS 34 - Interim Financial
Reporting, AC 500 standards as issued by the Accounting Practices Board or its
successor and the requirements of the Companies Act of South Africa. The
accounting policies are consistent with IFRS as well as those applied in the
most recent audited annual financial statements as at 31 March 2011. The
condensed consolidated interim financial statements should be read in
conjunction with the annual financial statements for the year ended 31 March
2011, which have been prepared in accordance with IFRS. The condensed unaudited
consolidated interim financial statements have not been audited or reviewed by
Tsogo Sun`s auditors.
2. SEGMENT INFORMATION
In terms of IFRS 8 - Operating Segments the chief operating decision-maker has
been identified as the group`s board of directors. The board reviews the group`s
internal reporting in order to assess performance and allocate resources.
Management has determined the operating segments based on the reports reviewed
by the group`s board of directors at the board meetings which are used to make
strategic decisions.
The board considers the business from both a geographical basis and business
type, being hotels and gaming. All gaming segments and the South African hotels
division conduct business in South Africa, with the offshore hotels division
having operations in other African countries, the Middle East and the
Seychelles. Other gaming operations consists mainly of the Sandton Convention
Centre and management fee income. The corporate segment includes the treasury
and management function of the group, together with the group`s captive
insurance operations.
Although the offshore hotels segment does not meet the quantitative thresholds
of IFRS 8, management has concluded that the segment should be reported as it
has a different risk and reward profile. It is closely monitored as it is
expected to materially contribute to group revenue in the future.
The reportable segments derive their revenue from hotel and gaming operations.
The group`s board of directors assesses the performance of the operating
segments based on EBITDAR. The measure excludes the effects of long-term
incentives and the effects of non-recurring expenditure such as rebranding and
pre-opening expenses. The measure also excludes all headline adjustments,
impairments and fair value adjustments on non-current assets and liabilities.
Interest income and finance costs are not included in the result for each
operating segment as this is driven by the group treasury function which manages
the cash and debt position of the group.
All revenue from gaming and hotel operations shown below is derived from
external customers.
No one customer contributes more than 10% to the group`s total revenue.
CONDENSED CONSOLIDATED
INCOME STATEMENT
FOR THE SIX MONTHS ENDED 30 SEPTEMBER
Year ended
31 March
2011 2010 2011
Change Unaudited Unaudited Audited
% Rm Rm Rm
Revenue 1 393 1 382 2 683
Rooms revenue 777 850 1 591
Food and beverage revenue 341 321 677
Other revenue 275 211 415
Net gaming win 67 2 963 1 774 3 804
Income 38 4 356 3 156 6 487
Gaming levies and Value
Added Tax (605) (359) (773)
Property and equipment rentals (115) (97) (211)
Amortisation and depreciation (321) (227) (447)
Employee costs (1 243) (749) (1 434)
Other operating expenses (898) (841) (2 137)
Operating profit 33 1 174 883 1 485
Interest income 26 10 24
Finance costs (235) (218) (415)
Share of profit of associates
and joint ventures 3 34 79
Profit before income tax 37 968 709 1 173
Income tax expense (350) (208) (440)
Profit for the period 23 618 501 733
Profit attributable to:
Equity holders of the company 553 448 606
Non-controlling interests 65 53 127
618 501 733
Number of shares in issue (m) 1 097 888 1 097
Weighted number of shares in issue (m) 1 097 888 906
Basic and diluted earnings per share (cents) 50.4 50.4 66.9
CONDENSED CONSOLIDATED
OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 SEPTEMBER
Year ended
31 March
2011 2010 2011
Unaudited Unaudited Audited
Rm Rm Rm
Profit for the period 618 501 733
Other comprehensive income for the
period, net of tax 31 (29) 6
Cash flow hedges (46) (17) 42
Currency translation adjustments 64 (17) (24)
Income tax relating to components of
other comprehensive income 13 5 (12)
Total comprehensive income for the period 649 472 739
Total comprehensive income attributable to:
Equity holders of the company 584 419 612
Non-controlling interests 65 53 127
649 472 739
SUPPLEMENTARY INFORMATION
FOR THE SIX MONTHS ENDED 30 SEPTEMBER
Year ended
31 March
2011 2010 2011
Change Unaudited Unaudited Audited
% Rm Rm Rm
Reconciliation of earnings
attributable to equity holders
of the company to headline
earnings and adjusted earnings(1)
Earnings attributable to
equity holders of the company 553 448 606
Gain on disposal of property,
plant and equipment (3) (4) (5)
Impairment of plant and equipment - - 8
Fair value loss on
devaluation of associate - - 299
Headline earnings 24 550 444 908
Transaction costs on
acquisition of Gold Reef
(including associate cost) - 14 83
Other exceptional items - 5 15
Adjusted headling earnings 19 550 463 1 006
Number of shares in issue (m) 1 097 888 1 097
Weighted number of shares
in issue (m) 1 097 888 906
Basic and diluted headline
earnings per share (cents) 50.1 50.0 100.2
Basic and diluted adjusted
headline earnings
per share (cents) (4) 50.1 52.1 111.1
(1) Adjustments net of income
tax and non-controlling interests.
Reconciliation of operating profit to EBITDAR
Group EBITDAR pre-exceptional items
is made up as follows:
Operating profit 1 174 883 1 485
Add:
Property rentals 95 82 171
Depreciation and amortisation 321 227 447
Long-term incentive expense/(credit) 33 3 (13)
1 623 1 195 2 090
(Less)/Add: Exceptional (gains)/losses (4) 17 420
Gain on disposal of property, plant and
equipment (4) (5) (6)
Transaction costs on acquisition of Gold Reef - 11 93
Fair value loss on devaluation of associate - - 299
Other adjustments - 11 34
EBITDAR 34 1 619 1 212 2 510
CONDENSED CONSOLIDATED BALANCE SHEET
AS AT 30 SEPTEMBER
31 March
2011 2010 2011
Unaudited Unaudited Audited
Rm Rm Rm
ASSETS
Non-current assets
Property, plant and equipment 8 070 5 504 8 099
Goodwill and other intangible assets 6 076 1 667 6 077
Investments in associates and joint
ventures 253 1 697 249
Non-current receivables 172 136 169
Deferred income tax assets 117 84 110
Derivative financial instruments 2 - 18
14 690 9 088 14 722
Current assets
Inventories 175 147 171
Trade and other receivables 495 354 383
Current income tax assets 59 54 62
Cash and cash equivalents 984 418 956
1 713 973 1 572
Total assets 16 403 10 061 16 294
EQUITY
Capital and reserves attributable
to equity holders of the company
Ordinary share capital and premium 4 752 1 074 4 751
Share-based payment reserve 3 - 2
Surplus arising on change in control
in joint venture 130 130 130
Other reserves 44 (22) 13
Retained earnings 2 181 2 019 2 177
Total shareholders` equity 7 110 3 201 7 073
Non-controlling interests 914 672 864
Total equity 8 024 3 873 7 937
LIABILITIES
Non-current liabilities
Interest-bearing borrowings 3 808 3 021 3 866
Derivative financial instruments 20 21 -
Deferred income tax liabilities 1 485 215 1 481
Provisions and other liabilities 369 698 628
5 682 3 955 5 975
Current liabilities
Interest-bearing borrowings 1 191 1 360 1 244
Derivative financial instruments 46 58 72
Trade and other payables 1 247 705 799
Current income tax liabilities 70 21 81
Provisions and other liabilities 143 89 186
2 697 2 233 2 382
Total liabilities 8 379 6 188 8 357
Total equity and liabilities 16 403 10 061 16 294
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30 SEPTEMBER
31 March
2011 2010 2011
Unaudited Unaudited Audited
Rm Rm Rm
Cash flow from operating activities
Profit before interest and income tax 1 174 883 1 485
Non-cash movements 420 282 873
Increase in working capital (91) (9) (70)
Cash generated from operations 1 503 1 156 2 288
Interest received 26 10 25
Interest paid (248) (175) (418)
1 281 991 1 895
Income tax paid (356) (282) (464)
Dividends received 5 48 57
Dividends paid to shareholders (548) - -
Dividends paid to non-controlling interests (36) (4) (23)
Net cash generated from operations 346 753 1 465
Cash flows from investment activities
Purchase of property, plant and equipment (215) (212) (306)
Proceeds from disposals of property, plant
and equipment 8 11 13
Purchase of intangible assets (5) (7) (29)
Acquisition of subsidiaries, net of cash
acquired - - 479
Part settlement of contingent
consideration for
Millennium acquisition (24) - -
Other loans and investments 2 4 (7)
Net cash (used for)/generated by
investment activities (234) (204) 150
Cash flows from financing activities
Borrowings raised 372 - 1 000
Borrowings repaid (483) (551) (2 076)
Loan repayments to non-controlling interests - (2) (2)
Acquisition of non-controlling interests - * (1)
Increase in share scheme loans (1) - -
Net cash utilised for financing activities (112) (553) (1 079)
Net increase/(decrease) in cash
and cash equivalents - (4) 536
Cash and cash equivalents
at beginning of period 956 425 425
Foreign currency translation 28 (3) (5)
Cash and cash equivalents at end of period 984 418 956
*Less than R1 million.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Attributable to equity holders of the company
Surplus
arising on
Ordinary share Share-based change in
capital and payment control in joint
premium reserve venture
Rm Rm Rm
Balance at 31 March 2010 (audited) 1 074 - 130
Total comprehensive income
for the six months
ended 30 September 2010 - - -
Repayment of non-controlling
interests` equity loans - - -
Acquisition of non-controlling
interests - - -
Ordinary dividends - - -
Balance at 30 September
2010 (unaudited) 1 074 - 130
Total comprehensive income
for the six months
ended 31 March 2011 - - -
Recognition of share-based payments - 2 -
Release of reserve - - *
Non-controlling interests`
share of property brought into use - - -
Acquisition of
non-controlling interests - - -
Share capital and premium
arising on reverse acquisition 3 677 - -
Non-controlling interests
recognised on reverse acquisition - - -
Ordinary dividends - - -
Balance at 31 March 2011 (audited) 4 751 2 130
Total comprehensive income
for the six months
ended 30 September 2011 - - -
Recognition of share-based payments - 1 -
Shares issued to share trust 35 - -
Treasury shares held by share trust (35) - -
Shares taken up by participants 1 - -
Shares issued by subsidiary taken
up by non-controlling interests - - -
Ordinary dividends - - -
Balance at 30 September
2011 (unaudited) 4 752 3 130
Attributable to equity holders of the company
Other Retained
reserves ** earnings Total
Rm Rm Rm
Balance at 31 March 2010 (audited) 7 1 571 2 782
Total comprehensive income for the six months
ended 30 September 2010 (29) 448 419
Repayment of non-controlling interests` equity
loans - - -
Acquisition of non-controlling interests - - -
Ordinary dividends - - -
Balance at 30 September 2010 (unaudited) (22) 2 019 3 201
Total comprehensive income for the six months
ended 31 March 2011 35 158 193
Recognition of share-based payments - - 2
Release of reserve - - *
Non-controlling interests` share of property
brought into use - - -
Acquisition of non-controlling interests - - -
Share capital and premium arising on reverse
acquisition - - 3 677
Non-controlling interests recognised on
reverse acquisition - - -
Ordinary dividends - - -
Balance at 31 March 2011 (audited) 13 2 177 7 073
Total comprehensive income for the six months
ended 30 September 2011 31 553 584
Recognition of share-based payments - - 1
Shares issued to share trust - - 35
Treasury shares held by share trust - - (35)
Shares taken up by participants - - 1
Shares issued by subsidiary taken up by
non-controlling interests - - -
Ordinary dividends - (549) (549)
Balance at 30 September 2011 (unaudited) 44 2 181 7 110
Non-controlling Total
interests equity
Rm Rm
Balance at 31 March 2010 (audited) 625 3 407
Total comprehensive income for the six months
ended 30 September 2010 53 472
Repayment of non-controlling interests` equity loans (2) (2)
Acquisition of non-controlling interests * *
Ordinary dividends (4) (4)
Balance at 30 September 2010 (unaudited) 672 3 873
Total comprehensive income for the six months
ended 31 March 2011 74 267
Recognition of share-based payments - 2
Release of reserve * *
Non-controlling interests` share of property
brought into use 93 93
Acquisition of non-controlling interests (1) (1)
Share capital and premium arising on reverse
acquisition - 3 677
Non-controlling interests recognised on reverse
acquisition 45 45
Ordinary dividends (19) (19)
Balance at 31 March 2011 (audited) 864 7 937
Total comprehensive income for the six months
ended 30 September 2011 65 649
Recognition of share-based payments - 1
Shares issued to share trust - 35
Treasury shares held by share trust - (35)
Shares taken up by participants - 1
Shares issued by subsidiary taken up by
non-controlling interests 20 20
Ordinary dividends (35) (584)
Balance at 30 September 2011 (unaudited) 914 8 024
* Less than R1 million.
**Comprises cash flow hedge reserve and foreign currency translation reserve.
SEGMENTAL ANALYSIS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER
Income EBITDAR
2011 2010 2011 2010
Unaudited Unaudited Unaudited Unaudited
Rm Rm Rm Rm
Montecasino 1 029 993 427 403
Suncoast 627 606 292 277
Gold Reef City 558 n/a 210 n/a
Silverstar 275 n/a 98 n/a
The Ridge 172 162 79 75
Emnotweni 142 133 62 56
Hemingways 139 134 57 56
Golden Horse 138 n/a 68 n/a
Garden Route 71 n/a 31 n/a
Goldfields 64 n/a 29 n/a
Blackrock 59 52 22 18
Caledon 59 57 16 14
Mykonos 57 n/a 23 n/a
Other gaming operations 49 51 (76) (30)
Total gaming operations 3 439 2 188 1 338 869
South African hotels
division 779 859 214 309
Offshore hotels division 153 126 63 29
Pre-foreign exchange gains 43 34
Foreign exchange 20 (5)
gains/(losses)
Corporate (15) (17) 4 5
Group 4 356 3 156 1 619 1 212
Depreciation
EBITDAR margin and amortisation
2011 2010 2011 2010
Unaudited Unaudited Unaudited Unaudited
% % Rm Rm
Montecasino 41.5 40.6 48 58
Suncoast 46.6 45.7 48 49
Gold Reef City 37.6 n/a 45 n/a
Silverstar 35.6 n/a 28 n/a
The Ridge 45.9 46.3 13 12
Emnotweni 43.7 42.1 8 8
Hemingways 41.0 41.8 9 10
Golden Horse 49.3 n/a 16 n/a
Garden Route 43.7 n/a 7 n/a
Goldfields 45.3 n/a 6 n/a
Blackrock 37.3 34.6 5 4
Caledon 27.1 24.6 4 7
Mykonos 40.4 n/a 5 n/a
Other gaming operations 5 7
Total gaming operations 38.9 39.7 247 155
South African hotels division 27.5 36.0 67 67
Offshore hotels division 41.2 23.0 6 4
Pre-foreign exchange gains 28.1 26.9
Foreign exchange gains/(losses)
Corporate 1 1
Group 37.2 38.4 321 227
Includes R14.6 million (2010: R17.6 million) intergroup management fees.
Note: In order to improve reporting of segments as reviewed by the chief
operating decision-maker all gaming precincts have been disclosed separately.
This is as a result of the reverse acquisition of Gold Reef on 24 February 2011.
All casino units are reported pre-internal gaming management fees.
DIRECTORS: JA Copelyn (Chairman)* JA Mabuza (Deputy Chairman)* MN von Aulock
(Chief Executive Officer) RB Huddy (Chief Financial Officer) MJA Golding*
JM Kahn* EAG Mackay* VE Mphande* JG Ngcobo> Y Shaik> RG Tomlinson
(Lead Independent)> A van der Veen* MI Wyman*#
(*Non-executive Director >Independent Director #British)
COMPANY SECRETARY: WJ van Wyngaardt
REGISTERED OFFICE: Palazzo Towers East, Montecasino Boulevard, Fourways, 2055
(Private Bag X200, Bryanston, 2021)
TRANSFER SECRETARIES: Link Market Services South Africa (Proprietary) Limited,
13th Floor, Rennie House, 19 Ameshoff Street, Braamfontein, 2001 (PO Box 4844,
Johannesburg, 2000)
SPONSOR: Deutsche Securities (SA) (Proprietary) Limited, 3 Exchange Square,
87 Maude Street, Sandton, 2196 (Private Bag X9933, Sandton, 2146)
Fourways
17 November 2011
Sponsor
Deutsche Securities (SA) (Proprietary) Limited
Date: 17/11/2011 10:00:02 Produced by the JSE SENS Department.
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