Sun International Expects Diluted Headline Earnings
Sun International, the leading hotel, gaming and resorts group, said yesterday that it expects that its diluted headline earnings per share for the year ending June 2014 will be 5 -10% lower.
According to the company, basic and headline earnings per share for the year were predicted to be between 23% and 28% lower than the 764c compared to the same period last year.
Reuters reported that Sun International’s ebitda increased by 16% in the second half of the year and 5% altogether over the entire year.
Other interesting information coming from Sun International is that it has seen an improvement in casino trading at its South African operations over the past six months, and gaming revenue climbed 6%.
Sun International noted that its earnings had been affected by a number of one off charges, impairment charges related to the Maslow Hotel and pre-opening costs.
Sun International will release its full results at the end of the month.
In February this year, Sun International reported a 20% decline in diluted headline earnings per share for the six months ending December 2013 to 325c.
At the time, management noted that trading for the period remained challenging, with particular attention on the South African gambling market where casino revenue remains erratic. Another issue affecting Sun Internationals’ earnings was the smoking ban put in place in Chile where the group operates its Monticello casino property.
On the other hand, the February numbers were boosted through a weaker rand and thus a stronger tourism industry. As a result, hospitality revenues rose, bringing numbers up slightly.
Casino revenue in February was in line with last year’s results, and strong growth was seen in the hospitality sector (room revenue grew 26 %).
Sun International continues to restructure and said that it had entered a consultation process with employees regarding the Labour Relations Act.
The group’s February statement noted that “the full benefits of these initiatives and the wider group restructure would only really reflect in the 2015 financial year.”
Sun International is an industry leading in South Africa’s gambling sphere, and has a presence in eight different countries around the world. Its flagship property is Sun City, which was built over three decades ago, and is still considered one of Southern Africa’s top tourist destinations. The Table Bay Hotel in Cape Town and the Livingstone Hotel at Victoria Falls form part of the group’s portfolio.