| Fri 11 Apr 2014, 7:05 | | PHUMELELA GAMING & LEISURE LIMITED - Unaudited Interim Financial Results for the six months ended 31 January 2014 |
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PHM 201404110002A
Unaudited Interim Financial Results for the six months ended 31 January 2014
Phumelela Gaming and Leisure Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1997/016610/06
Share code: PHM ISIN: ZAE000039269
Reviewed results
The Group’s unaudited condensed interim financial information
for the six months ended 31 January 2014
HIGHLIGHTS
PBT FROM INTERNATIONAL OPERATIONS UP 52%
HEPS UP 30%
FIXED ODDS RETAIL FOOTPRINT UP 34%
DIVIDEND MAINTAINED IN LINE WITH THE BOARD'S DIVIDEND COVER POLICY
Condensed consolidated statement of comprehensive income
Unaudited Unaudited Audited
6 months 6 months 12 months
31 Jan 31 Jan 31 Jul
% 2014 2013 2013
change R’000 R’000 R’000
Income
- Local operations 7 474 533 445 358 901 797
- International operations 143 112 095 46 147 113 029
19 586 628 491 505 1 014 826
Gross betting income
- Local operations 7 464 606 434 959 875 827
Net betting income
- Local operations 6 373 871 351 419 707 853
Other operating income
- Local operations 23 102 828 83 595 182 356
- International operations 141 112 468 46 574 114 137
Investment income
- Local operations (75) 270 1 072 1 753
- International operations 17 21 18 42
Net income 22 589 458 482 678 1 006 141
Operating expenses and overheads
- Stakes 6 (92 110) (86 960) (175 689)
- Local operations 14 (360 560) (315 576) (661 529)
- International operations 387 (81 505) (16 728) (43 734)
Profit before finance costs, income tax,
depreciation and amortisation (13) 55 283 63 414 125 189
Depreciation and amortisation 21 (24 568) (20 306) (39 885)
Profit from operations (29) 30 715 43 108 85 304
Finance costs
- Local operations (31) (214) (310) (779)
Profit before share of profit of equity
accounted investees (29) 30 501 42 798 84 525
Share of profit of equity accounted
investees 176 31 926 11 552 26 705
Profit before income tax expense 15 62 427 54 350 111 230
Income tax expense (29) (10 692) (15 064) (25 257)
Profit for the period 32 51 735 39 286 85 973
Other comprehensive income net of taxation
Items that may subsequently be reclassified
to profit or loss
- Exchange differences on translating foreign
operations 101 2 793 1 388 2 204
Total comprehensive income for the period 34 54 528 40 674 88 177
Profit attributable to:
Ordinary equity holders of the parent 32 51 727 39 141 85 871
Non-controlling interest 8 145 102
Profit for the period 32 51 735 39 286 85 973
Total comprehensive income attributable to:
Ordinary equity holders of the parent 35 54 520 40 529 88 075
Non-controlling interest 8 145 102
Total comprehensive income for the period 34 54 528 40 674 88 177
Earnings per ordinary share (cents)
- Basic 32 68,43 51,78 113,61
- Diluted 29 65,64 50,78 110,85
Supplementary statement of comprehensive income information
Unaudited Unaudited Audited
6 months 6 months 12 months
31 Jan 31 Jan 31 Jul
% 2014 2013 2013
change R’000 R’000 R’000
Reconciliation of headline earnings
Earnings attributable to equity holders of
parent 32 51 727 39 141 85 871
Adjusted for:
Net (profit)/loss on disposal of property,
plant and equipment (694) 496 901
Tax effect 194 (139) (252)
Headline earnings 30 51 227 39 498 86 520
Headline earnings per share (cents) 30 67,77 52,26 114,46
Diluted headline earnings per share (cents) 27 65,01 51,24 111,69
Net asset value per share (cents) 9 585,69 538,66 571,58
Dividend to shareholders
Interim dividend
Dividend per ordinary share (cents) 28,00 28,00 28,00
Final dividend
Dividend per ordinary share (cents) 60,00
Number of shares in issue 75 586 838 75 586 838 75 586 838
Weighted average number of shares in issue
for basic and headline earnings per share
calculation 75 586 838 75 586 838 75 586 838
Weighted average number of shares in issue
for diluted earnings per share calculation 78 799 418 77 082 581 77 466 301
Condensed consolidated statement of financial position
Unaudited Unaudited Audited
as at as at as at
31 Jan 31 Jan 31 Jul
2014 2013 2013
R’000 R’000 R’000
ASSETS
Non-current assets 540 009 436 950 495 400
Property, plant and equipment 407 994 364 005 404 467
Goodwill 12 362 12 227 12 227
Intangible assets 48 016 42 185 45 529
Interest in equity accounted investees 26 989 13 103 15 765
Investments 718 714 718
Long-term loan 34 670 7 434
Deferred taxation asset 9 260 4 716 9 260
Current assets 239 677 139 126 149 028
Inventories 6 920 5 743 5 629
Trade and other receivables 137 270 70 398 81 089
Pension fund surplus 1 568 1 568 1 568
Income tax receivable 4 807 3 411 542
Cash and cash equivalents 89 112 58 006 60 200
Total assets 779 686 576 076 644 428
EQUITY AND LIABILITIES
Total equity 443 021 407 506 432 345
Share capital and premium 1 890 1 890 1 890
Retained earnings 435 352 403 411 427 477
Non-distributable reserves 5 463 1 854 2 670
Equity attributable to ordinary shareholders 442 705 407 155 432 037
Non-controlling interest 316 351 308
Non-current liabilities 3 993 5 835 3 734
Deferred taxation liability 2 096 4 186 2 074
Finance lease liability 237
Retirement benefit obligations 1 660 1 649 1 660
Current liabilities 332 672 162 735 208 349
Trade and other payables 282 861 149 054 197 464
Bank overdrafts 31 441
Short-term borrowings 7 768
Contingent consideration liability 3 000 3 000 3 000
Income tax payable 526 741
Betting dividends payable 7 076 10 681 7 144
Total equity and liabilities 779 686 576 076 644 428
Condensed consolidated statements of cash flow
Unaudited Unaudited Audited
6 months 6 months 12 months
31 Jan 31 Jan 31 Jul
2014 2013 2013
R’000 R’000 R’000
Net cash (outflow)/inflow from operating
activities (885) (8 987) 66 706
Cash generated by operations 55 798 64 468 124 747
Movements in working capital 3 742 (22 793) 26 787
Cash generated by operating activities 59 540 41 675 151 534
Income tax paid (15 150) (12 893) (26 131)
Investment income 291 1 090 1 795
Finance costs (214) (310) (779)
Dividends to shareholders (45 352) (38 549) (59 713)
Net cash inflow/(outflow) from investing
activities 15 430 (31 019) (83 010)
Acquisition of property, plant and equipment
and intangible assets (30 742) (40 367) (104 423)
Proceeds on disposal of property, plant and
equipment and intangible assets 1 610 156 440
Dissolution of PGE joint operation 24 032
Prepayment in respect of fixed odds investment
opportunity (7 231)
Dividend received from equity accounted
investee 27 761 9 192 20 973
Net cash outflow from financing activities (19 867) (22 721)
Finance lease payments (31)
Finance raised 7 400
Loan extended to Kenilworth Racing (27 236) (22 721)
Net decrease in cash and cash equivalents (5 322) (40 006) (39 025)
Effect of exchange fluctuations on cash and
cash equivalents 2 793 991 2 204
Cash and cash equivalents at beginning of period 60 200 97 021 97 021
Cash and cash equivalents at end of period 57 671 58 006 60 200
Condensed consolidated statement of changes in equity
Equity
Non- attributable Non-
Share distributable Retained to ordinary controlling Total
capital reserves earnings shareholders interest equity
R’000 R’000 R’000 R’000 R’000 R’000
Balance at 31 July 2012 1 890 466 401 319 403 675 206 403 881
Total comprehensive income for the period 1 388 39 141 40 529 145 40 674
- Profit for the period 39 141 39 141 145 39 286
- Foreign currency translation reserve 1 388 1 388 1 388
Share-based payment 1 500 1 500 1 500
Transactions with owners recorded directly in equity
- Dividends paid to equity holders (38 549) (38 549) (38 549)
Balance at 31 January 2013 1 890 1 854 403 411 407 155 351 407 506
Total comprehensive income for the period 816 46 730 47 546 (43) 47 503
- Profit for the period 46 730 46 730 (43) 46 687
- Foreign currency translation reserve 816 816 816
Share-based payment (1 500) (1 500) (1 500)
Transactions with owners recorded directly in equity
- Dividends paid to equity holders (21 164) (21 164) (21 164)
Balance at 31 July 2013 1 890 2 670 427 477 432 037 308 432 345
Total comprehensive income for the period 2 793 51 727 54 520 8 54 528
- Profit for the period 51 727 51 727 8 51 735
- Foreign currency translation reserve 2 793 2 793 2 793
Share-based payment 1 500 1 500 1 500
Transactions with owners recorded directly in equity
- Dividends paid to equity holders (45 352) (45 352) (45 352)
Balance at 31 January 2014 1 890 5 463 435 352 442 705 316 443 021
Review of results
Group results
The Group’s profit after tax (“PAT”) and earnings per share (“EPS”) increased by 32% to R52 million and 68,43 cents
per share respectively and headline earnings per share (“HEPS”) by 30% to 67,77 cents per share.
The results were underpinned by a very pleasing 52% increase in profit before tax (“PBT”) from international
operations that benefited from a 176% increase in the Group’s share of profits from the Isle of Man operation, revenue
growth from the export of South African thoroughbred horseracing media rights and concomitant betting thereon and rand
weakness.
Whilst local trading conditions remained challenging, the Group’s local betting division, racing operations, and
on-course attendance and hospitality performed ahead of expectations. Most notably totalisator soccer pool bets
increased by 32% and now exceed betting on international horse racing, on-course attendances increased by 15% and
totalisator betting on local horse racing increased by 2%. Betting World’s profits were adversely affected by the
start-up costs attendant to the 34% increase in its retail footprint. Despite this fixed odds numbers betting handle
surged by 119%.
Total income increased by 19% to R587 million and comprises local operations up 7% to R475 million and international
operations up 143% to R112 million. Effective from 1 August 2013 the PGE joint operation (previously proportionately
consolidated at 61%) was dissolved (“the PGE dissolution”) and income relating to international operations is now
accounted for at 100%. On a revised comparative basis total income increased by 13%.
Net betting income comprising local totalisator and fixed odds operations increased by 6% to R374 million. Net betting
income from totalisator operations benefitted from a 30% increase in soccer pools and increased by 6% to R320 million.
Net betting income from fixed odds operations benefitted from a 106% increase on numbers betting and increased by 7%
to R54 million.
Other operating income comprises, inter alia, commission received from international totes betting on South African
racing (up 43%), fees paid by offshore bookmakers for the rights to display South African racing (up 27%), local
bookmakers’ levies (down 5%), unclaimed dividends and breakages (up 12%), Tellytrack subscriptions (up 24%), share
of profits from LPMs installed in retail outlets (up 3%) and stable rentals (up 7%). Other operating income increased
by 65% to R215 million.
Operating expenses increased by 27% to R534 million inclusive of stakes that increased by 6% to R92 million. As a
result of the PGE dissolution all operating costs relating to international operations (previously proportionately
consolidated at 61%) are now accounted for at 100%. On a revised comparative basis operating costs increased by 15%.
Profit before finance costs, income tax, depreciation and amortisation (PBITDA) decreased by 13% to R55 million. On
a revised comparative basis PBITDA decreased by 1%.
The Group invested a further R31 million in its capital infrastructure during the period under review. This coupled
with the R40 million invested in a synthetic track (commissioned during the period under review) and general upgrade
of facilities at the Fairview racecourse in the previous year increased the depreciation and amortisation charge by
21% to R25 million.
Share of profit from equity accounted investees (previously proportionately consolidated at 61% and now accounted
for at 100%) increased by 176% to R32 million. On a revised comparative basis, share of profit from equity accounted
investees increased by 69%.
Local operations
Income from local operations increased by 7% to R475 million with income from fixed odds operations up 7% to
R64 million and income from totalisator, racing and other operations up 6% to R411 million.
Net betting income increased by 6% to R374 million comprising totalisator operations which increased by 6% to
R320 million and fixed odds operations which increased by 7% to R54 million.
Net betting income from totalisator operations was underpinned by a pleasing 30% increase in totalisator soccer pool
betting income to R94 million. Soccer pools continue to gain momentum assisted by increased betting opportunities on
a weekly basis. Net betting income from local and imported horseracing product decreased by 1% to R227 million
primarily due to an 11% drop in betting on international racing, which was adversely impacted by inclement weather
conditions.
During the period under review Betting World increased its retail footprint by 34% to 55 outlets. In addition the
roll out of its bespoke fixed odds betting software commenced in late 2013. As a consequence fixed odds betting
handle comprising 52% (2013: 64%) on horseracing, 20% (2013: 22%) on other sports and 28% (2013: 14%) on numbers,
increased by 10%.
Net betting income on horseracing was down 5% to R25 million, on other sports down 55% to R5 million and on numbers
up 106% to R23 million.
Other income increased by 23% to R103 million and includes LPM income of R9 million (up 4%), bookmaker levies of
R25 million (down 5%), unclaimed dividends and breakages of R16 million (up 12%) and royalties/commingling fees of
R28 million (up 80%).
Operating expenses (inclusive of stakes that increased by 6% to R92 million) increased by 12% to R453 million. The
increase is primarily due to employee, water and lights, rates and taxes, transport, security, lease rentals and
regulatory compliance costs further compounded by the increased retail footprint.
PBT from local operations decreased by 103% to a loss of R0,4 million. Increased operating costs associated with
expanding the Betting World retail footprint outweighed the benefits derived from commencing business during the
period under review.
International operations
Income from other international operations increased by 143% to R112 million assisted by rand weakness and increased
revenues from the Group’s major trading partners, primarily due to increased demand for South African racing and
concomitant betting thereon. As a result of the PGE dissolution, all income and operating expenses relating to
international operations (previously proportionately consolidated at 61%) is now accounted for at 100%. On a revised
comparative basis income increased by 48%.
Operating expenses increased by 387% to R82 million. On a revised comparative basis operating expenses increased
by 46% primarily due to legal and consultant fees and host track fees paid to generate the increased income.
The Group’s share of profit from its equity accounted investees Premier Gateway International Limited (Isle of Man)
and Automatic Systems Limited (Mauritius) increased by 176% to R32 million. On a revised comparative basis share of
profit from its equity accounted investees increased by 69%.
PBT from international operations increased by 52% to R63 million and equates to 101% (2013: 76%) of the Group’s PBT.
FINANCIAL POSITION
The Group has total assets of R780 million including net cash resources of R58 million and insignificant gearing. The
Group’s net asset value per share increased to 585,69 cents per share.
Cash generated from operations of R56 million was utilised to pay income tax of R15 million and dividends of R45
million. A further R31 million was utilised for capital expenditure and R27 million was extended to Kenilworth Racing
as a bridging finance loan. The dissolution of the PGE joint operation resulted in an increase in cash reserves of
R24 million.
Dividends received from the Isle of Man amounted to R27 million.
SHARE CAPITAL
There was no movement in authorised or issued share capital during the period under review.
CONDENSED CONSOLIDATED SEGMENTAL ANALYSIS
The Group stages and broadcasts horseracing events and offers betting opportunities on both South African and
international product in two geographic segments, namely South Africa and the rest of the world. The reporting
segments are set out as local and international operations with local further segmented into fixed odds and tote
and other operations.
CONDENSED SEGMENTAL ANALYSIS
Supplementary information
Unaudited Unaudited Revised Audited
6 months 6 months 6 months 12 months
31 Jan 31 Jan 31 Jan 31 Jul
% 2014 2013 % 2013 2013
change R’000 R’000 change R’000 R’000
LOCAL
Excluding fixed odds
Income 6 410 723 385 907 6 385 907 777 178
Net betting income 6 320 260 301 308 6 301 308 603 052
- Horseracing (1) 226 529 229 136 (1) 229 136 461 046
- Other sports 30 93 731 72 172 30 72 172 142 006
Other income 17 95 788 81 850 17 81 850 173 659
Investment income (81) 186 954 (81) 954 1 334
Net income 8 416 234 384 112 8 384 112 778 045
Stakes 6 (92 110) (86 960) 6 (86 960) (175 689)
Operating expenses 12 (311 497) (277 766) 12 (277 766) (575 965)
Profit before depreciation and amortisation (35) 12 627 19 386 (35) 19 386 26 391
Depreciation and amortisation 17 (19 891) (16 988) 17 (16 988) (33 281)
Profit before finance costs and income tax expense (403) (7 264) 2 398 (403) 2 398 (6 890)
Finance costs (35) (200) (310) (35) (310) (779)
(Loss)/profit before income tax expense (457) (7 464) 2 088 (457) 2 088 (7 669)
Fixed odds
Income 7 63 810 59 451 7 59 451 124 619
Net betting income 7 53 611 50 111 7 50 111 104 801
- Horseracing (5) 25 478 26 777 (5) 26 777 54 847
- Other sports (55) 5 547 12 370 (55) 12 370 19 727
- Other 106 22 586 10 964 106 10 964 30 227
Other income 303 7 040 1 745 303 1 745 8 697
Investment income (29) 84 118 (29) 118 419
Net income 17 60 735 51 974 17 51 974 113 917
Operating expenses 30 (49 063) (37 810) 30 (37 810) (85 565)
Profit before depreciation and amortisation (18) 11 672 14 164 (18) 14 164 28 352
Depreciation and amortisation 41 (4 580) (3 250) 41 (3 250) (6 433)
Profit before finance costs and income tax expense (35) 7 092 10 914 (35) 10 914 21 919
Finance costs (14)
Profit before income tax expense (35) 7 078 10 914 (35) 10 914 21 919
Supplementary information
INTERNATIONAL
Income 143 112 095 46 147 48 75 651 113 029
Other income 141 112 468 46 574 47 76 350 114 137
Investment income 17 21 18 (30) 30 42
Net income 141 112 489 46 592 47 76 380 114 179
Intellectual property rights fees (41 598) (26 436)
Operating expenses 139 (39 907) (16 728) 46 (27 423) (43 733)
Profit before depreciation and amortisation 4 30 984 29 864 38 22 521 70 446
Depreciation and amortisation 43 (97) (68) (13) (111) (171)
Profit from operations 4 30 887 29 796 38 22 410 70 275
Share of profit of equity accounted investees 176 31 926 11 552 69 18 938 26 705
Profit before income tax expense 52 62 813 41 348 52 41 348 96 980
TOTAL FOR THE GROUP
Income 19 586 628 491 725 13 521 009 1 014 826
Net betting income 6 373 871 351 419 6 351 419 707 853
- Horseracing (2) 252 007 255 913 (2) 255 913 515 893
- Other sports 17 99 278 84 542 17 84 542 161 733
- Other 106 22 586 10 964 106 10 964 30 227
Other income 65 215 296 130 169 35 159 945 296 493
Investment income (73) 291 1 090 (74) 1 102 1 795
Net income 22 589 458 482 678 15 512 466 1 006 141
Stakes 6 (92 110) (86 960) 6 (86 960) (175 689)
Intellectual property rights fees (41 598) (26 436)
Operating expenses 21 (400 467) (332 304) 17 (342 999) (705 263)
Profit before depreciation and amortisation (13) 55 283 63 414 (1) 56 071 125 189
Depreciation and amortisation 21 (24 568) (20 306) 21 (20 349) (39 885)
Profit before finance costs and income tax expense (29) 30 715 43 108 (14) 35 722 85 304
Finance costs (31) (214) (310) (31) (310) (779)
Profit before share of equity accounted investee (29) 30 501 42 798 (14) 35 412 84 525
Share of profit of equity accounted investees 176 31 926 11 552 69 18 938 26 705
Profit before income tax expense 15 62 427 54 350 15 54 350 111 230
CAPITAL COMMITMENTS
Commitments in respect of capital expenditure approved by directors.
2014 2013
R’000 R’000
Contracted for 5 781 29 009
Not contracted for 51 328 52 601
Not contracted for commitments include R11 million to upgrade and expand the totalisator retail footprint,
R11 million to maintain racing operations facilities, machinery, motor vehicles and equipment, R5 million to
upgrade broadcasting equipment, R5 million to expand Turffontein’s office space and R8 million to upgrade and
maintain the existing IT equipment and infrastructure.
Capital commitments will be financed out of cash and cash equivalents on hand or borrowing facilities as and
when required.
REPORTING ENTITY
Phumelela Gaming and Leisure Limited is a company domiciled in South Africa. The condensed consolidated interim
financial information as at and for the period ended 31 January 2014 comprises the Company and its subsidiaries,
and the Group’s interests in equity accounted investees and joint operations.
STATEMENT OF COMPLIANCE AND PRESENTATION
The condensed consolidated interim financial statements for the six months ended 31 January 2014 have been prepared
in accordance with the framework concepts, the recognition and measurement requirements of IFRS, the presentation
and the disclosure requirements of IAS34 - Interim Financial Reporting, the SAICA Financial Reporting Guides as
issued by the Accounting Practices Committee and Financial Reporting Pronouncements as issued by the Financial
Reporting Standards Council, the Listings Requirements of the JSE Limited and the requirements of the South African
Companies Act. The financial information does not include all the information required for full annual financial
statements and should be read in conjunction with the consolidated financial statements of the Group as at and for
the year ended 31 July 2013.
The condensed consolidated interim financial statements are presented in South African rands rounded to the nearest
thousand, which is the Company’s functional and the Group’s presentation currency. They are prepared on the
historical cost basis, except for certain derivative financial instruments that are recognised at fair value.
The accounting policies applied in the presentation of the condensed consolidated interim financial statements
are consistent with those applied for the year ended 31 July 2013, except for new standards and interpretations
that became effective on 1 August 2013 and deemed applicable to the Group. The adoption of these standards and
interpretations had no impact on the results for the period nor has it required the restatement of any prior
year figures. The amounts disclosed are not audited or reviewed by the auditors, except if indicated otherwise.
The Board endorses the recommendations set out in King III and supports the Code of Corporate Practices and
Conduct setout therein.
Mr B K McLoughlin CA(SA) (Chief Financial Officer) was responsible for supervising the preparation of the
annual financial statements and preparing these condensed consolidated interim financial statements.
SUBSEQUENT EVENTS
There are no significant subsequent events that have an impact on the financial information at 31 January 2014.
CORPORATE INTERESTS
As reported previously, Phumelela and Gold Circle received notice on 1 July 2011, from the Competition Commission
(“the Commission”) of a complaint lodged by Africa Race Group (Pty) Limited alleging, inter alia, price fixing
and market allocation. The Company has submitted a formal response to the allegations and awaits the
Commission’s findings.
The directors consider the possibility of an outflow of resources as remote.
The Group is in the process of unbundling its indirect investment in Automatic Systems Limited (Mauritius)("ASL")
previously held through Phumelela Gold Enterprises (“PGE”) with a view of holding the shares in ASL directly.
Phumelela and Gold Circle have agreed to distribute the shares in equal proportion between them.
LITIGATION
Phumelela is a respondent in an application instituted by Almenta (Pty) Limited and others in the Gauteng local
division of the High Court for an order directing, inter alia, Phumelela and Tellytrack to continue to provide
the Tellytrack channel to certain bookmakers in Gauteng pending the outcome of a number of complaints lodged with
the Gauteng Gambling Board, the Eastern Cape Gambling and Betting Board, the National Gambling Board and the
Independent Communications Authority of South Africa.
The Court has reserved judgement,the outcome of which may have an impact on future earnings.
RELATED PARTIES
With effect from 1 August 2013, the Phumelela Gold Enterprises (“PGE”) joint operation between Gold Circle (“GC”)
and Phumelela (PGL) was terminated. Concurrently PGL, GC and Kenilworth Racing (KR) concluded:
• the Tellytrack Partnership Agreement to operate, for the exclusive benefit of the partnership, the Tellytrack
Channel,
• a substitute Sport Administration Agreement to regulate the administration of the sport, and
• a Licence Agreement whereby GC and KR grant PGL the right to use and exploit their commercial rights and
intellectual property internationally (excluding South Africa and Namibia) for 10 years from the effective
date.
In consideration for these rights, PGL shall pay GC 24,96% and KR 14,04% of profits derived from international
operations.
As a result the international business previously accounted as a division of PGE and proportionately consolidated
at 61% was transferred to PGL as a separate operating division and is now accounted for at 100%.
As a consequence comparative information for international operations may be misleading. A revised comparison
is set out in the condensed segmental analysis as supplementary information.
Other than reported above, there have been no significant changes in related party relationships since the
previous year.
Other than in the normal course of business, there have been no significant transactions during the period with
equity accounted investees, joint operations and other related parties.
SOCIAL RESPONSIBILITY
The Group recognises that it has a responsibility to the broader community to act in a socially responsible
manner, for the benefit of all South Africans. Contributions to selected training, sports and community service
related projects continue. The Group has adopted appropriate BEE and employment equity, training and procurement
policies.
The Group is a “AAA Level Two Contributor”.
DIRECTORS
There were no changes to the composition of the Board during the period under review.
PROSPECTS
The sport of thoroughbred horse racing in South Africa is growing again, with on course betting and attendances
growing by more than 10%.
Tellytrack’s agreements with the 3 bookmaker associations have ended and it has made its services available to
all bookmakers for display in their betting outlets at a fee which should enable Tellytrack to earn a fair
economic return going forward. We are hopeful that the future Tellytrack license fees will contribute to a
reduction in the imbalance of the funding of the sport in South Africa.
The Group’s international operations, soccer pools and fixed odds numbers betting continue to enjoy buoyant demand.
The Group continues to target real growth in earnings per share.
Any forward looking statements of forecasts contained in these results have not been reviewed or reported on by
the Group auditors.
CASH DIVIDEND TO SHAREHOLDERS
Notice is hereby given that the Board has declared a gross interim cash dividend for the six months ended
31 January 2014 from income reserves of 28 cents per share (23,80 cents per share net of dividend withholding tax
at a rate of 15%) payable to shareholders recorded in the register on Friday 23 May 2014. The Company has no
secondary tax on companies’ credits available. The issued share capital at the declaration date is 77 101 885
ordinary shares. Shareholders are advised that the last date to trade “cum distribution” will be Friday 16 May 2014.
As from commencement of business on Monday 19 May 2014 all trading in Phumelela shares will be “ex dividend”. Payment
will be made on Monday 26 May 2014. Share certificates may not be dematerialised or rematerialised between
Monday 19 May 2014 and Friday 23 May 2014, both days inclusive. The Company’s tax reference number is 9171/393/84/7.
For and on behalf of the Board
M P Malungani W A du Plessis
Chairman Group Chief Executive
Johannesburg
11 April 2014
Directors: M P Malungani (Chairman), W A du Plessis* (Group Chief Executive), A W Heide* (Finance Director and COO),
R Cooper, M J Jooste, B Kantor, S K C Khampepe, N J Mboweni (Mrs), V J Moodley*, Dr E Nkosi, M L Ramafalo*, J A Stuart*,
C J H van Niekerk, J B Walters
(*Executive)
Company Secretary: R Gopaul
Registered Office: Turffontein Racecourse, 14 Turf Club Street, Turffontein
Transfer Secretaries: Computershare Investor Services (Pty) Ltd
Sponsor: Investec Bank Limited
For more information on our business please go to:
www.phumelela.co.za
Date: 11/04/2014 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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