The revenues for the period of R2.2bn were 23% higher from R1.76bn, with gaming revenues up 24% and hospitality and other revenues up 19%. The headline earnings per share for the period decreased significantly to a 295cps loss (53cps profit). An interim dividend of 25cps has been declared for the period.
The strong growth in gaming revenues resulted from the excellent trading of the group's new operations and the opening of the Flamingo and Meropa casinos. Gaming revenues at the group's biggest casino operation, GrandWest were 32% up on the previous year at R407m. The Boardwalk casino revenues grew by 33% to R122m. The Carousel, Morula Sun, Thaba`Nchu Sun and Wild Coast Sun continued to be impacted by competition from more conveniently located urban casinos.
SISA`s average room occupancy at 76% was eleven percentage points above the previous year at an average rate of R748, 24% up on last year. Occupancies at Sun City, the Table Bay and Zimbali were 6, 20 and 4 percentage points ahead of the previous year at 78%, 71% and 68% respectively. The strong growth in both occupancy and rate experienced over the last year is attributed to the popularity and perceived relative safety of SA as a tourist destination as well as the value for money the country offers international tourists.
The positive outlook for the local economy should benefit the group's casino operations although growth in casino revenues in the second half will be lower, in part due to the new competitor facility in Durban. The contribution from the group's casino and hotel operations in the second half is expected to be higher than the prior financial year. This together with an increased contribution from SIML, following the purchase of the minority's interest and a reduction in the losses from the Zambian operations should reflect strong growth in adjusted headline earnings over the second half of the prior year.
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