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SUI - Sun International Limited - Business Update for the Quarter to 30 September 2011 Sun International Limited (Incorporated in the Republic of South Africa) (Registration number 1967/007528/06) Share code: SUI ISIN: ZAE000097580 Business Update for the Quarter to 30 September 2011 Trading Quarter to 30 September 2011 2010 Change Rm % Rm
Revenue 2 287 6 2 152 Casino 1 808 7 1 682 Rooms 223 - 222 Food,beverage and other 256 3 248 EBITDA 572 (3) 590 EBITDA margin (%) 25.0 (2.4) 27.4 Casino revenue for the quarter was 7% ahead of last year with Monticello revenue growth of 24%. GrandWest, Carnival City and Sibaya achieved revenue growth of 5%, 4% and 8% respectively. The Group`s share of the Gauteng and Kwazulu-Natal markets remained relatively stable compared to last year. Rooms revenue was in line with last year at R223 million. The group achieved occupancy of 62%, 3 percentage points lower than the same quarter last year at an average room rate of R946 (R889). Demand for rooms remains very soft, particularly in Cape Town, where The Table Bay occupancies declined from 40% last year to 30% in the same quarter this year. Last year was also assisted by the FIFA World Cup - excluding this business rooms revenues would have grown 7% in the quarter. Current forward bookings indicate a slightly better trend in the next quarter but rooms demand is expected to remain subdued for the rest of the financial year. The group achieved an EBITDA margin of 25.0% which was 2.4 percentage points lower than the comparative quarter last year. Monticello EBITDA margin increased from 16% to 19% reflecting the improvement in revenues and operating efficiencies. The EBITDA margin in the rest of the group was impacted by the slow revenue growth and all major cost categories growing at rates ahead of revenue. Gaming and Hotels and Resorts operations both increased October revenues by 11% compared to last year. Developments South Africa Wild Coast Sun The upgrade and enhancement of the Wild Coast Sun is progressing well and is 75% complete. The project is in its third phase and comprises the refurbishment of an additional 182 bedrooms, main kitchen and construction of a world class waterpark. The total estimated capital expenditure remains at R400 million with final completion scheduled for mid-2012. Boardwalk The expansion of Boardwalk continues and includes construction of the 870 bay parkade, new conference centre and 135 room five star hotel with an estimated completion date of December 2012. The conversion of the existing conference centre into the new smoking casino is well underway with an anticipated opening in December 2011. The estimated cost of the project remains unchanged at R1 billion. Grayston Hotel The group has entered into a long term lease for the Grayston hotel currently operated by Southern Sun. The hotel which has 346 rooms and excellent conference facilities will close at the end of December 2011 and undergo a full refurbishment in 2012 at an estimated cost of R250 million, which will be financed 50% by the group and 50% by the landlord. The hotel which is scheduled to reopen in early 2013 will be a significantly improved product which will be positioned as a four star plus. Directorate Shareholders are referred to the separate announcement on the resignation of the Chief Executive. Outlook Better growth in revenues is expected in the second quarter with consequential improved EBITDA performance. The outlook has not been reviewed or reported on by the company`s auditors. Sandton 8 November 2011 Sponsor: Investec Bank Limited Date: 08/11/2011 17:18:10 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.
