Wrap Text
SUI - Sun International Limited - Business Update for the Quarter and Nine
Months to 31 March 2012
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 and Nine Months to 31 March 2012
Trading
Quarter to 31 March Nine months to 31 March
2012 Change 2011 2012 Change 2011
Rm % Rm Rm % Rm
Revenue 6,674
2,394 10 2,181 7,271 9
Casino 5,197
1,883 11 1,703 5,692 10
Rooms
245 5 233 751 8 697
Food, beverage and
other 266 9 245 828 6 780
EBITDA 1,907
651 2 636 1,962 3
EBITDA margin (%)
27.2 (2.0) 29.2 27.0 (1.6) 28.6
Revenue for the quarter at R2.4 billion was 10% up on last year.
Casino revenue was 11% ahead with Monticello, in Chile having achieved revenue
growth of 28% to R331 million and an 87% increase in EBITDA to R65 million
resulting in an EBITDA margin of 19.6%. GrandWest grew its revenue and EBITDA by
10% and 24% respectively. Excluding the impact of the new management fee
arrangement EBITDA would have increased by 11%. Sibaya achieved revenue and
EBITDA growth of 10% and 14% respectively and an EBITDA margin of 34%, 1
percentage point above last year. Carnival City`s revenue and EBITDA grew by 8%
and 7% respectively while the EBITDA margin declined marginally by 0.1
percentage point. Boardwalk grew revenue and EBITDA by 12% and 16% respectively
for the quarter resulting in the EBITDA margin increasing 1 percentage point to
35%.
Trading in hotels and resorts remains challenging, and overall group occupancy
for the quarter at 61% was 4 percentage points below last year. Sun City`s
revenue increased 1% with an average room rate of R1 542, 13% above last year as
a result of better yielding by the various rate segments. Occupancy of 58% was
achieved, 6 percentage points lower than last year. April occupancy however was
74%, 4 percentage points ahead of last year. EBITDA was 59% behind last year
with a margin of 7.4%, resulting from the high fixed cost element of the resort.
The Table Bay achieved occupancy of 57% for the quarter, 1 percentage point
below last year at an average room rate of R2 150, a 2.5% increase on last year.
EBITDA declined by 23%, and the margin was 23%. At the Zambian resorts at
Victoria Falls occupancy was 35%, 8 percentage points below last year and room
rate was US$219 (US$196). April occupancy improved to 54% and average daily room
rate was US$221. In Lagos, Nigeria, the Federal Palace Hotel occupancy of 54%
was 18 percentage points below last year at an average room rate of US$275
(US$268). Business travel was severely disrupted in the quarter due to the Lagos
civil unrest.
The group achieved an EBITDA margin of 27.2% which was 2 percentage points lower
than last year, primarily due to the difficult trading environment in the Hotels
and Resorts portfolio.
Developments
South Africa
Wild Coast
The final phase of the Wild Coast Sun upgrade commenced in January 2012 wherein
the last 103 bedrooms and corridors are being refurbished. Completion is due at
the end of June 2012 within the original budget.
Boardwalk
The expansion of Boardwalk is progressing well and includes construction of the
870 bay parkade, new conference centre, additional retail component, world-class
water feature and 140 room five star hotel. The development is projected to be
completed within the budget of R1 billion and on time in December 2012.
Grayston Hotel
The Grayston Hotel Refurbishment Project commenced in January 2012, and is
scheduled for completion in December 2012. The total development cost remains at
R250 million.
SunWest exclusivity
The Provincial Government of the Western Cape published two Bills and a set of
Regulations to amend the provincial gambling legislation on 16 March 2012.
These deal with casino exclusivities and changes to the structures of the gaming
taxes and licence fees.
Comments have been submitted to the Provincial Government in terms of the public
participation process on behalf of GrandWest and Golden Valley.
Outlook
Trading conditions for Gaming in the last quarter of the year are expected to be
similar to the reported quarter. Hotels and Resorts is expecting an improvement
in occupancy and trading results.
The outlook has not been reviewed or reported on by the company`s auditors.
9 May 2012
Johannesburg
Sponsor: Investec Bank Limited
Date: 09/05/2012 09:00:01 Supplied by www.sharenet.co.za
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