Wrap Text
GDF - Gold Reef Resorts Limited - Reviewed consolidated financial results for
the year ended 31 March 2011
Gold Reef Resorts Limited
To be renamed Tsogo Sun Holdings Limited
(Incorporated in the Republic of South Africa)
"Gold Reef" or "the company" or "the group"
Registration number 1989/002108/06
Share Code: GDF
ISIN: ZAE 000028338
Tsogo Sun Group
Hotels, Gaming & Entertainment
Reviewed consolidated financial results for the year ended 31 March 2011
COMMENTARY
INTRODUCTION
The merger of Tsogo Sun Holdings (Pty) Ltd ("Tsogo") and Gold Reef Resorts Ltd
("Gold Reef") and the effective reverse listing of Tsogo via the acquisition by
Gold Reef of the entire issued share capital of Tsogo 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 Tsogo become the majority shareholders of
Gold Reef. Accordingly Tsogo is treated as the acquirer for accounting purposes,
whilst Gold Reef is the legal acquirer and remains the listed entity.
The consolidated condensed income statement and cash flow statement for the year
ended 31 March 2011 represent eleven months of Tsogo trading (April 2010 to
February 2011), and one month of the combined group trading (March 2011). The
comparative information for the prior period represents the audited consolidated
results of Tsogo for the year ended 31 March 2010.
COMMENTARY
The past financial year saw growth in revenue across most of the group`s
casinos, albeit at low levels, with trading in the last quarter of the financial
year reflecting stronger growth in casino win, particularly in Gauteng and
KwaZulu-Natal. Southern Sun Hotels benefited from the FIFA 2010 Soccer World Cup
in June and July 2010, although the benefit was diluted as a result of the
substantial disruption to normal trading patterns in the time periods both
during and adjacent to the tournament.
Total income of R6,5 billion was 12% above the prior period, assisted by the
inclusion of R195 million income from Gold Reef in March 2011 and the opening of
the Southern Sun Montecasino Hotel, parking and Pivot office development in
April 2010, which contributed R75 million in income for the financial year under
review.
Earnings before interest, income tax, depreciation, amortisation, property
rentals, long term incentives and exceptional items ("EBITDAR") at R2,5 billion
reflected a 9% increase on the prior year. Additional EBITDAR from Gold Reef in
March 2011 of R67 million and EBITDAR related to the new developments at
Montecasino of R22 million, as well as a reduction in foreign exchange losses
from R52 million in the prior year to R7 million in the current period assisted
this growth. The overall group EBITDAR margin of 38.7% is 1% below last year,
but a satisfactory achievement in the current environment.
As previously reported, the underlying operations of the group remain highly
geared towards the South African consumer (in gaming) and the corporate market
(in hotels). The group is poised for growth if these sectors of the South
African economy continue to improve. However, regulatory risks represent a
significant threat to the ability of the group to yield the potential benefits
of an economic recovery, with a plethora of proposed changes to regulations
affecting aspects of the business as diverse as marketing, consumer promotion
and communications to slot machine certification, gaming related taxes and
evolving BBBEE requirements. The group continues to engage with the various
regulatory bodies and other government departments on a constructive basis to
ensure that proposed changes are warranted and capable of implementation without
destroying shareholder returns and consequently having a negative impact on
employment levels and future investments in the industry. The group remains
focused on its growth strategy and will continue to pursue opportunities, with
the regulatory environment permitting.
Montecasino gaming win reflected growth of 5.7% against a Gauteng provincial
growth of 2.3% for the year ended 31 March 2011. The consequential gain in
market share arose as the Montecasino catchment area was again less affected
than other Gauteng regions, with a higher prevalence of Prive play than Gold
Reef City or Silverstar. Total income of R2 billion was 9% up on the last year
including the new developments in the precinct. Montecasino continues to service
high levels of footfall attracted by the entertainment and events on offer and
remains the premier entertainment destination in Gauteng. EBITDAR pre internal
management fees, at R792 million is 4% above the prior year as overheads
increased by 13% including the costs associated with the new developments on the
site.
The KwaZulu-Natal gaming market grew by 5.2% over the prior year with the
Suncoast Casino and Entertainment World reflecting growth of 5.4% in gaming win
and 5.5% in total income. EBITDAR pre internal management fees at R609 million
is 4% above the prior year as overheads increased by 7%. The Suncoast EBITDAR
margin pre internal management fees of 48.3% is 0.9% below last year.
The Ridge Casino in Emalahleni (Witbank) had a good year, with income growing by
some 9%, assisted by the additional facilities of a Prive, a 135 room StayEasy
hotel and additional cinemas opened on site in 2009. EBITDAR pre internal
management fees at R161 million grew by 7% on last year.
The Hemingways Mall, attached to the Hemingways Casino in East London, opened in
late 2009 and has assisted the casino to grow revenues during the year. However
EBITDAR was flat on the prior period as the local East London economy remains
subdued. Tsogo Sun Emonti (Pty) Ltd has been named as preferred bidder for the
renewal of the ZONE 2 license in East London which currently expires in
September 2011. In terms of the bid, an additional R400 million in capital
expenditure will be incurred on this development over the next two years.
The Emnotweni Casino in Nelspruit experienced low income growth of 2% and
consequential 5% decline in EBITDAR pre internal management fees. Plans for the
refurbishment and extension of this casino remain on hold until greater
certainly as to the economic and regulatory tax environment has been achieved.
The other Tsogo Sun Gaming operations, consisting of the Caledon Hotel and Spa,
Blackrock Casino in Newcastle, the Sandton Convention Centre, management fee
income and head office costs reflected EBITDAR of R281 million, some 12% up due
to a full year`s inclusion of the Caledon and Newcastle properties against nine
months in the prior period.
The hotel industry in South Africa is still experiencing the dual impact of
reduced demand and over supply and the Southern Sun Hotel Group is no exception.
With little recovery in the core corporate and government segments, system-wide
occupancies remain under pressure at 58.4% (2010: 58.0%). The group however
managed to grow system-wide average room rates to R834 from a prior year R801,
although virtually all growth in rate is attributable to the higher achieved
rates during the World Cup period. Overall income grew by 4% to R1,6 billion
during the year. Operating costs were again well-controlled with a 6% increase
on the prior year, despite regulated utility costs and property rates increases
and incremental overhead incurred for the World Cup. EBITDAR improved 1% to R562
million at a margin of 34.8%
The offshore division of the Southern Sun Hotel Group achieved total revenue of
R271 million, representing 14% 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 losses) of R75 million was achieved.
The Rand remained strong during the year under review which impacted both the
translation of US$ and Euro earnings streams as well as resulting in a R7
million foreign exchange loss 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:
31 MARCH 2011 31 MARCH 2010
Occupancy (%) 58.4% 57.3%
Average Room rate (R) 855 831
Revpar (R) 499 478
Rooms Available (`000) 3 186 3 066
Rooms Revenue (Rm) 1 591 1 460
The corporate division reflected EBITDAR of R17 million as the group`s captive
insurance operations again benefited from the absence of any significant claims.
Included in other operating expenses are various costs associated with the Gold
Reef merger and other exceptional items, totaling R420 million. These consist of
a fair value impairment of the group`s 25% investment in Gold Reef at the
closure of the merger amounting to R299 million, merger transaction costs
including management termination payments, advisor, economists and legal fees of
R93 million and various net asset impairments and restructure costs of R28
million.
Amortisation and depreciation at R447 million, was 6% above last year on the
back of capex spend and net finance costs of R391 million were 7% above the
prior year due to higher average debt balances over the period. The group`s
share of associate and joint venture profits at R79 million reflected a 9%
decrease on the prior year as the investment in Gold Reef was only equity
accounted for eleven months for the year under review.
The effective tax rate for the year at 40.2% is affected by inter alia the non-
deductibility of the majority of the exceptional items detailed above, and
excluding these exceptional items is 30.5%. The effective tax rate is assisted
by there being no secondary tax on companies ("STC") charge in the year, due to
the declaration of the final dividend being delayed to May 2011. 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.
Group adjusted headline earnings for the year at R1 billion were 17% above the
prior year. This level of growth is higher than had the effects of the Gold Reef
group being consolidated for the month of March and the lack of a normal STC
charge been excluded, where growth of 10% in adjusted earnings would then have
been reported.
In determining the closing and weighted average number of shares for the year
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 Tsogo and the actual shares in
issue post the issue of the consideration shares, excluding treasury shares for
the combined group. Adjusted HEPS is 15% above the prior year.
Cash generated from operations during the year was R2,3 billion, flat on the
prior year after payment of the cash components of the various merger costs.
Cash flows utilised for existing investment activities of R329 million consisted
mainly of maintenance expenditure of R233 million and the balance of the
Montecasino development of R86 million.
Interest-bearing debt net of cash at 31 March 2011 totaled R4,2 billion, a
decrease of R313 million over the prior year, despite the take on of R814
million in Gold Reef related net debt on conclusion of the merger. The net debt
position at March 2011 is low as a result of the delay of the payment of the
final dividend, totaling R549 million from March 2011 to June 2011.
PROSPECTS
The trading environment for gaming and hotels continues to be subdued, however
the group remains highly cash generative. The merger with Gold Reef has seen
Tsogo emerge as the largest gaming and hotel group in South Africa and the group
remains focused on growth.
DIVIDEND
The board of directors has declared a final cash dividend of 50 (fifty) cents
per share in respect of the company`s year-end. 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, 10 June 2011.
In compliance with the requirements of Strate, the electronic and custody system
used by the JSE, the following dates are applicable:
Last date to trade cum dividend Friday, 3 June 2011
Shares trade ex dividend Monday, 6 June 2011
Record date Friday, 10 June 2011
Payment date Monday, 13 June 2011
Share certificates may not be dematerialised or rematerialised during the period
Monday, 6 June 2011 and Friday, 10 June 2011, both days inclusive.
On Monday, 13 June 2011 the cash dividend will be electronically transferred to
the bank accounts of all certificated shareholders where this facility is
available. Where electronic fund transfer is not available or desired, cheques
dated 13 June 2011 will be posted on that date. Shareholders who have
dematerialised their share certificates will have their accounts at their CSDP
or broker credited on Monday, 13 June 2011.
For and on behalf of the board
J A MABUZA
Chief Executive Officer
M N VON AULOCK
Chief Financial Officer
19 May 2011
NOTES TO THE REVIEWED FINANCIAL STATEMENTS
1. BASIS OF PREPARATION
The condensed consolidated reviewed annual financial statements for the year
ended 31 March 2011 have been prepared in accordance with International
Financial Reporting Standards ("IFRS"), IAS 34 Interim Financial Reporting and
AC500 Standards as issued by the Accounting Practices Board or its successor.
The condensed consolidated provisional financial statements as at 31 March 2011,
and for the year then ended, have been reviewed by the group`s auditors,
PricewaterhouseCoopers Inc. This review has been conducted in accordance with
International Standard on Review Engagements 2410, "Review of Interim Financial
Information Performed by the Independent Auditor of the Entity", and their
unmodified review conclusion is available for inspection at the company`s
registered office.
2. ACCOUNTING POLICIES
The accounting policies applied are consistent with those of the consolidated
annual financial statements for Tsogo for the year ended 31 March 2010, as
described in those annual financial statements.
3. BUSINESS COMBINATIONS
The group acquired an effective 100% control over Gold Reef via a reverse
acquisition which has been accounted for in terms of IFRS 3 Business
Combinations (Revised) - effective 24 February 2011. In terms of the share swap
agreement the total number of ordinary Gold Reef shares issued was 888 261 028.
These shares issued at fair value comprise the total purchase consideration.
The acquired business contributed incremental revenues of R195 million and
adjusted earnings of R25 million to the group for the period from date of
control to 31 March 2011. If the acquisition had occurred on 1 April 2010, group
income would have increased by R2 133 million and adjusted earnings would have
increased by R226 million excluding the equity earnings already accounted for.
These amounts have been calculated using the group`s accounting policies.
Details of the net assets acquired:
ORIGINAL PROVISIONAL
CARRYING FAIRVALUE
AMOUNT
Rm Rm
Net tangible asset value 2 384 2 380
Intangible assets 94 4 464
Deferred tax arising on
intangible assets - (1 134)
Interest bearing
borrowings net of cash (814) (814)
1 664 4 896
The intangible assets comprise primarily the value of the casino licences.
4. 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.
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 a measure of EBITDAR. 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 INCOME STATEMENT FOR THE YEAR ENDED 31 MARCH 2011
REVIEWED AUDITED
CHANGE 2011 2010
% Rm Rm
Revenue 12 2 683 2 400
Rooms revenue 1 591 1 460
Food and beverage revenue 677 588
Other revenue 415 352
Net gaming win 12 3 804 3 410
Income 12 6 487 5 810
Gaming levies and VAT (773) (689)
Property and equipment rentals (211) (192)
Amortisation and depreciation (447) (423)
Employee costs (1 434) (1 234)
Other operating expenses (2 137) (1 564)
Operating profit (13) 1 485 1 708
Interest income 24 40
Finance costs (415) (407)
Share of profit of associates and
joint ventures 79 87
Profit before income tax (18) 1 173 1 428
Income tax expense (440) (400)
Profit for the year (29) 733 1 028
Profit attributable to:
Equity holders of the company 606 857
Non-controlling interests 127 171
733 1 028
Number of shares in issue (000) 1 097 888
Weighted number of shares in issue
(000) 906 888
Basic and diluted earnings per
share (cents) (31) 66.9 96.5
CONDENSED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2011
REVIEWED AUDITED
2011 2010
Rm Rm
Profit for the year 733 1 028
Other comprehensive income
Other comprehensive income for the period,
net of tax 6 (113)
Cash flow hedges 42 (6)
Currency translation adjustments (24) (109)
Income tax relating to components of other
comprehensive income (12) 2
Total comprehensive income for the year 739 915
Total comprehensive income attributable to:
Equity holders of the company 612 746
Non-controlling interests 127 169
739 915
SUPPLEMENTARY INFORMATION FOR THE YEAR ENDED 31 MARCH 2011
REVIEWED AUDITED
CHANGE 2011 2010
% Rm Rm
Reconciliation of earnings attributable
to equity holders of the company to
headline earnings and adjusted earnings#
Earnings attributable to equity holders
of the company 606 857
Gain on disposal of property, plant and
equipment (5) *
Impairment of plant and equipment 8 1
Excess of fair value of assets acquired - (2)
Fair value loss on devaluation of
associate 299 -
Headline earnings 6 908 856
Gold Reef transaction costs (including
associate costs) 83 -
Other exceptional items 15 6
Adjusted headline earnings 17 1 006 862
Weighted number of shares in issue (000) 906 888
Basic and diluted headline earnings per
share (cents) 4 100.2 96.3
Basic and diluted adjusted headline
earnings per share (cents) 15 111.1 97.0
#Adjustments net of income tax and non-
controlling interests
Earnings before interest, income tax,
depreciation, amortisation, property
rentals and long term incentives
("EBITDAR")
Group EBITDAR pre exceptional items is
made up as follows :
Operating profit 1 485 1 708
Add:
Property rentals 171 154
Depreciation and amortisation 447 423
Long term incentive (credit)/expense (13) 23
2 090 2 308
Add: Exceptional losses 420 1
Gain on disposal of property, plant and
equipment (6) *
Gold Reef transaction costs 93 -
Fair value loss on devaluation of
associate 299 -
Other adjustments 34 1
EBITDAR 9 2 510 2 309
*Amounts less than R1 million
CONDENSED BALANCE SHEET AS AT 31 MARCH 2011
REVIEWED AUDITED
2011 2010
Rm Rm
ASSETS
Non-current assets
Property, plant and equipment 8 099 5 583
Goodwill and other intangible assets 6 077 1 676
Investments in associates and joint ventures 249 1 710
Non-current receivables 152 135
Deferred income tax assets 110 68
Derivative financial instruments 18 -
Share scheme 17 -
14 722 9 172
Current assets
Inventories 171 130
Trade and other receivables 383 285
Current income tax assets 62 -
Cash and cash equivalents 956 514
1 572 929
Total assets 16 294 10 101
EQUITY
Capital and reserves attributable to equity
holders of the company
Ordinary share capital and premium 4 751 1 074
Share-based payment reserve 2 -
Surplus arising on change in control in joint
venture 130 130
Other reserves 13 7
Retained earnings 2 177 1 571
Total shareholders` equity 7 073 2 782
Non-controlling interests 864 625
Total equity 7 937 3 407
LIABILITIES
Non-current liabilities
Interest bearing borrowings 3 866 3 357
Derivative financial instruments - 19
Deferred income tax liabilities 1 481 203
Provisions and other liabilities 628 648
5 975 4 227
Current liabilities
Interest bearing borrowings 1 244 1 624
Derivative financial instruments 72 53
Trade and other payables 799 634
Current income tax liabilities 81 40
Provisions and other liabilities 186 116
2 382 2 467
Total liabilities 8 357 6 694
Total equity and liabilities 16 294 10 101
CONDENSED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2011
REVIEWED AUDITED
2011 2010
Rm Rm
Cash flow from operating activities
Profit before interest and income tax 1 485 1 708
Non-cash movements 873 556
(Increase)/decrease in working capital (70) 21
Cash generated from operations 2 288 2 285
Interest received 25 40
Interest paid (418) (398)
1 895 1 927
Income tax paid (464) (449)
Dividends received 57 52
Dividends paid to shareholders - (411)
Dividends paid to non-controlling interests (23) (20)
Net cash generated from operations 1 465 1 099
Cash flows from investment activities
Purchase of property, plant and equipment (306) (850)
Proceeds from disposals of property, plant and
equipment 13 4
Additions to intangible assets (29) (24)
Acquisition of subsidiaries, net of cash
acquired 479 (1 439)
Investment made in associate - (333)
Other loans and investments (7) (22)
Net cash generated by/(utilised for) investment
activities 150 (2 664)
Cash flows from financing activities
Borrowings raised 1 000 1 804
Borrowings repaid (2 076) (308)
Loan repayments to non-controlling interests (2) -
Acquisition of non-controlling interests (1) -
Net cash (utilised in)/generated from financing
activities (1 079) 1 496
Net increase/(decrease) in cash and cash
equivalents 536 (69)
Cash and cash equivalents at beginning of year 425 506
Foreign currency translation (5) (12)
Cash and cash equivalents at end of year (net of
bank overdrafts) 956 425
CONDENSED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2011
ATTRIBUTABLE TO EQUITY HOLDERS OF THE
COMPANY
ORDINARY SHARE-BASED SURPLUS
SHARE PAYMENT ARISING ON
CAPITAL & RESERVE CHANGE IN
PREMIUM CONTROL IN
JOINT
VENTURE
Rm Rm Rm
Balance at 31 March 2009 1 074 - 130
Changes in equity for 2010
Total comprehensive income for
the year - - -
Surplus arising on change in
control in joint venture
- At acquisition non-
controlling interests - - -
Acquisition of non-controlling
interests - - -
Ordinary dividends - - -
Balance at 31 March 2010 1 074 - 130
Changes in equity for 2011
Total comprehensive income for
the year - - -
Share capital and premium
arising on reverse acquisition 3 677 - -
Non-controlling interests
recognised on reverse
acquisition - - -
Recognition of share-based
payments - 2 -
Release of reserve - - *
Non-controlling interests
recognised on change in control - - -
Acquisition of non-controlling
interests - - -
Repayment of non-controlling
interests equity loans - - -
Ordinary dividends - - -
Balance at 31 March 2011 4 751 2 130
CONDENSED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2011
ATTRIBUTABLE TO EQUITY HOLDERS OF THE
COMPANY
OTHER RETAINED TOTAL
RESERVES** EARNINGS
Rm Rm Rm
Balance at 31 March 2009 118 1 125 2 447
Changes in equity for 2010
Total comprehensive income for
the year (111) 857 746
Surplus arising on change in
control in joint venture
- At acquisition non-
controlling interests - - -
Acquisition of non-controlling
interests - - -
Ordinary dividends - (411) (411)
Balance at 31 March 2010 7 1 571 2 782
Changes in equity for 2011
Total comprehensive income for
the year 6 606 612
Share capital and premium
arising on reverse acquisition - - 3 677
Non-controlling interests
recognised on reverse
acquisition - - -
Recognition of share-based
payments - - 2
Release of reserve - - -
Non-controlling interests
recognised on change in control - - -
Acquisition of non-controlling
interests - - -
Repayment of non-controlling
interests equity loans - - -
Ordinary dividends - - -
Balance at 31 March 2011 13 2 177 7 073
CONDENSED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2011
NON- TOTAL EQUITY
CONTROLLING
INTERESTS
Rm Rm
Balance at 31 March 2009 672 3 119
Changes in equity for 2010
Total comprehensive income for
the year 169 915
Surplus arising on change in
control in joint venture
- At acquisition non-
controlling interests (1) (1)
Acquisition of non-controlling
interests (195) (195)
Ordinary dividends (20) (431)
Balance at 31 March 2010 625 3 407
Changes in equity for 2011
Total comprehensive income for
the year 127 739
Share capital and premium
arising on reverse acquisition - 3 677
Non-controlling interests
recognised on reverse
acquisition 45 45
Recognition of share-based
payments - 2
Release of reserve * *
Non-controlling interests
recognised on change in control 93 93
Acquisition of non-controlling
interests (1) (1)
Repayment of non-controlling
interests equity loans (2) (2)
Ordinary dividends (23) (23)
Balance at 31 March 2011 864 7 937
*Less than R1 million. **Comprises cash flow hedge reserve and foreign
currency translation reserve.
SEGMENTAL ANALYSIS
INCOME INCOME EBITDAR EBITDAR
2011 2010 2011 2010
Rm Rm Rm Rm
Montecasino 1 964 1 796 661 632
EBITDAR pre internal
management fees 792 760
less: internal management
fees (131) (128)
Suncoast 1 261 1 195 523 504
EBITDAR pre internal
management fees 609 588
less: internal management
fees (86) (84)
The Ridge 332 305 137 128
EBITDAR pre internal
management fees 161 151
less: internal management
fees (24) (23)
Hemingways 269 256 98 97
EBITDAR pre internal
management fees 117 116
less: internal management
fees (19) (19)
Emnotweni 268 264 96 102
EBITDAR pre internal
management fees 114 120
less: internal management
fees (18) (18)
Other gaming operations 341 240 281 250
Gold Reef 195 n/a 67 n/a
Total Gaming operations 4 630 4 056 1 863 1 713
South African Hotels
division* 1 617 1 549 562 555
Offshore Hotels division 271 237 68 20
Pre foreign exchange
losses 75 72
Foreign exchange loss (7) (52)
Corporate (31) (32) 17 21
Group 6 487 5 810 2 510 2 309
SEGMENTAL ANALYSIS
EBITDAR EBITDAR AMORTISATION AMORTISATION
MARGIN MARGIN & &
DEPRECIATION DEPRECIATION
2011 2010 2011 2010
% % Rm Rm
Montecasino 33.7 35.2 101 103
EBITDAR pre internal
management fees 40.3 42.3
less: internal management
fees
Suncoast 41.5 42.2 94 94
EBITDAR pre internal
management fees 48.3 49.2
less: internal management
fees
The Ridge 41.0 42.0 23 24
EBITDAR pre internal
management fees 48.4 49.4
less: internal management
fees
Hemingways 36.3 37.9 17 20
EBITDAR pre internal
management fees 43.4 45.2
less: internal management
fees
Emnotweni 35.9 38.7 16 15
EBITDAR pre internal
management fees 42.6 45.6
less: internal management
fees
Other gaming operations * * 33 26
Gold Reef 34.6 n/a 18 n/a
Total Gaming operations 40.2 42.2 302 282
South African Hotels
division* 34.8 35.8 134 129
Offshore Hotels division 24.9 8.8 8 9
Pre foreign exchange
losses 27.6 30.6
Foreign exchange loss
Corporate * * 3 3
Group 38.7 39.7 447 423
SEGMENTAL ANALYSIS
CARRYING CARRYING CAPITAL CAPITAL
VALUE OF VALUE OF EXPENDITURE EXPENDITURE
ASSOCIATES ASSOCIATES
& JOINT & JOINT
VENTURES VENTURES
2011 2010 2011 2010
Rm Rm Rm Rm
Total Gaming operations 74 1 539 293 712
South African Hotels
division* 50 44 70 179
Offshore Hotels
division 125 127 10 6
Pre foreign exchange
losses
Foreign exchange loss
Corporate - - 1 1
Group 249 1 710 374 898
*Includes R30,9 million (2010: R32,1 million) intergroup management fees.
Note: In order to improve the reporting of segments as reviewed by the chief
operating decision maker, The Ridge, Hemingways and Emnotweni precincts have
been disclosed separately for 2011 and 2010 comparatives.
DIRECTORS: JA Copelyn (Chairman)*; JA Mabuza (Chief Executive Officer); MN von
Aulock (Chief Financial Officer); RA Collins; MJA Golding*; JM Kahn*; EAG
Mackay*; VE Mphande*; JG Ngcobo>; RG Tomlinson (Lead Independent)>;
A van der Veen*; PJ Venison>; GI Wood; 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)
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19 May 2011
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