Wrap Text
Profit and Dividend Announcement for the year ended 30 June 2013
Sun International Limited
("Sun International" or "the group" or "the company")
Registration Number: 1967/007528/06,
Share Code: SUI, ISIN: ZAE 000097580
Profit and
Dividend
Announcement
for the year ended
30 June 2013
HIGHLIGHTS
-Revenue UP
+8%
-EBITDA UP
+11%
-Adjusted HEPS UP
+18%
-Final gross dividend of
155 cents per share
Condensed group statements of
comprehensive income
for the year ended 30 June
2013 % 2012
R million Reviewed change Audited
Revenue
Casino 8 195 7 7 645
Rooms 957 14 838
Food, beverage and other 1 115 10 1 011
10 267 8 9 494
Benefit fund surplus 24
Consumables and services (1 130) (1 076)
Depreciation and amortisation (851) (818)
Employee costs (2 256) (2 103)
Levies and VAT on casino revenue (1 917) (1 774)
Promotional and marketing costs (717) (698)
Property and equipment rentals (128) (95)
Property costs (541) (485)
Other operational costs (831) (759)
Operating profit 1 896 11 1 710
Foreign exchange profits 57 79
Interest income 31 37
Interest expense (486) (521)
Profit before tax 1 498 15 1 305
Tax (477) (434)
Profit for the year 1 021 17 871
Other comprehensive income:
Net profit on cash flow hedges 3
Tax on net profit on cash flow hedges (1)
Transfer of hedging reserve to statements of
comprehensive income 2 2
Currency translation reserve 550 233
Total comprehensive income for the year 1 575 1 106
Profit for the year attributable to:
Minorities 314 239
Ordinary shareholders 707 632
1 021 871
Total comprehensive income for the year
attributable to:
Minorities 611 317
Ordinary shareholders 964 22 789
1 575 1 106
Cents Cents
per share per share
Earnings per share
basic 736 669
diluted 732 10 664
Dividends per share 265 240
Condensed group statements of financial position
at 30 June
2013 2012
R million Reviewed Audited
ASSETS
Non current assets
Property, plant and equipment 10 594 9 595
Intangible assets 494 479
Available-for-sale investment 48 48
Loans and receivables 13 23
Pension fund asset 29 38
Deferred tax 214 148
11 392 10 331
Current assets
Loans and receivables 52 38
Tax 41 57
Accounts receivable and other 557 543
Cash and cash equivalents 1 023 752
1 673 1 390
Total assets 13 065 11 721
EQUITY AND LIABILITIES
Capital and reserves
Ordinary shareholders' equity 2 220 1 496
Minorities' interests 1 693 1 227
3 913 2 723
Non current liabilities
Deferred tax 501 423
Borrowings 3 512 4 257
Other non current liabilities 440 506
4 453 5 186
Current liabilities
Tax 69 101
Accounts payable and other 1 472 1 289
Borrowings 3 158 2 422
4 699 3 812
Total liabilities 9 152 8 998
Total equity and liabilities 13 065 11 721
Condensed group statements of cash flows
for the year ended 30 June
2013 2012
R million Reviewed Audited
Cash generated by operations before: 2 912 2 749
Working capital changes 168 (15)
Cash generated by operations 3 080 2 734
Tax paid (498) (531)
Cash generated by operating activities 2 582 2 203
Settlement of long services award obligation (120)
Net cash generated by operating activities 2 462 2 203
Cash utilised in investing activities (1 300) (1 161)
Cash realised from investing activities 75 41
Net cash outflow from financing activities (1 031) (1 130)
Effect of exchange rates upon cash and cash equivalents 65 57
Increase in cash and cash equivalents 271 10
Cash and cash equivalents at beginning of the year 752 742
Cash and cash equivalents at end of the year 1 023 752
Group statements of changes in equity
Treasury
Share shares Foreign Share Reserve Ordinary
capital and currency based Available- for non- share-
and share translation payment for-sale controlling Hedging Retained holders' Minorities' Total
R million premium options reserve reserve reserve interests reserve earnings equity interests equity
Reviewed
FOR THE YEAR ENDED 30 JUNE 2013
Balance at 30 June 2012 277 (1 600) 228 161 4 (2 206) (2) 4 634 1 496 1 227 2 723
Total comprehensive income for the year 254 3 707 964 611 1 575
Treasury share options purchased (34) (34) (34)
Treasury share options exercised 29 29 29
Shares issued 32 32 32
Net deemed treasury shares purchased (3) (3) (3)
Vested shares 14 (14)
Employee share based payments 46 46 46
Release of share based payment reserve (32) 32 -
Release of SFIR equity option reserve (75) 33 (42) 42
Delivery of share awards (11) (11) (11)
Acquisition of minorities' interests (13) 8 (5) 95 90
Dividends paid (252) (252) (282) (534)
Balance at 30 June 2013 309 (1 594) 482 86 4 (2 219) 1 5 151 2 220 1 693 3 913
Audited
FOR THE YEAR ENDED 30 JUNE 2012
Balance at 30 June 2011 146 (1 613) 71 193 4 (1 470) (2) 4 188 1 517 1 300 2 817
Total comprehensive income for the year 157 632 789 317 1 106
Treasury share options purchased (20) (20) (20)
Treasury share options exercised 61 61 61
Shares issued 131 131 131
Deemed treasury shares purchased (72) (72) (72)
Vested shares 44 (44)
Employee share based payments 33 33 33
Release of share based payment reserve (21) 21
Delivery of share awards (8) (8) (8)
Acquisition of minorities' interests (736) (736) (82) (818)
Dividends paid (199) (199) (308) (507)
Balance at 30 June 2012 277 (1 600) 228 161 4 (2 206) (2) 4 634 1 496 1 227 2 723
Supplementary information
for the year ended 30 June
2013 % 2012
R million Reviewed change Audited
EBITDA RECONCILIATION
Operating profit 1 896 11 1 710
Expropriation of land Monticello* 6
Depreciation and amortisation 851 818
Property and equipment rental 104 71
Pre-opening Maslow lease rentals* 24 24
Benefit fund surplus recognition* (24)
Net loss on disposal of property, plant and equipment* 1
Pre-opening expenses* 37 3
Retrenchment costs* 9
Employee benefits* (15)
Other* 4
Reversal of Employee Share Trusts' consolidation* 35 24
EBITDA 2 936 11 2 642
EBITDA margin (%) 29 28
HEADLINE EARNINGS AND ADJUSTED
HEADLINE EARNINGS RECONCILIATION
Profit attributable to ordinary shareholders 707 12 632
Headline earnings adjustments 1
Net loss on disposal of property, plant and equipment 1
Headline earnings 707 12 633
Adjusted headline earnings adjustments 12 (27)
Pre-opening expenses 37 3
Expropriation of land Monticello 6
Benefit surplus recognition (24)
Retrenchment costs 9
Pre-opening Maslow lease rentals 24 24
Employee benefits (15)
Other 4
Foreign exchange profits on intercompany loans (38) (45)
Tax on the above items (1) 8
CGT (46)
Tax on termination of management contract (22)
Minorities' interests on the above items (2) 49
Reversal of Employee Share Trusts' consolidation(i) 24 21
Adjusted headline earnings 740 20 616
Number of shares ('000)
in issue 96 661 95 903
for EPS calculation 96 016 94 437
for diluted EPS calculation 96 537 95 207
for adjusted headline EPS calculation(i) 102 991 100 941
for diluted adjusted headline EPS calculation(i) 103 512 101 711
Earnings per share (cents)
basic earnings per share 736 10 669
headline earnings per share 736 10 670
adjusted headline earnings per share 719 18 610
diluted basic earnings per share 732 10 664
diluted headline earnings per share 732 10 665
diluted adjusted headline earnings per share 715 18 606
Tax rate reconciliation (%)
Effective tax rate 32 33
Preference share dividends (3) (4)
STC (5)
Prior year over-provisions 2
Foreign taxes 1 1
Release of CGT on share premium distributions 4
Capital allowances and disallowed expenditure (2) (3)
SA corporate tax rate 28 28
EBITDA to interest (times) 6.5 5.3
Annualised borrowings to EBITDA (times) 2.3 2.5
Net asset value per share (Rand) 22.97 15.60
Capital expenditure 1 300 1 150
Capital commitments
contracted 183 625
authorised but not contracted 1 259 1 021
1 442 1 646
* Items identified above are included as other expenses and other income in the segmental analysis.
(i) The consolidation of the Employee Share Trust is reversed in the calculation of adjusted headline earnings as the
group does not receive the economic benefits of the trust.
ACCOUNTING POLICIES
The condensed consolidated financial information for the year ended 30 June 2013 has been
prepared in accordance with the requirements of the JSE Limited Listings Requirements and the South
African Companies Act, No 71 of 2008. The Listings Requirements require provisional reports to be
prepared in accordance with the framework concepts, the measurement and recognition requirements
of International Financial Reporting Standards (IFRS), the SAICA Financial Reporting Guides as issued
by the Accounting Practices Committee and must also, as a minimum, contain the information
required by IAS 34 "Interim Financial Reporting". The accounting policies applied are consistent with
those adopted in the financial statements for the year ended 30 June 2012.
REVIEW OPINION
The condensed consolidated financial information for the year ended 30 June 2013 has 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
opinion is available for inspection at the company's registered office.
REVIEW OF THE YEAR
Revenue for the year ended 30 June 2013 was 8% ahead of last year at R10.3 billion. After an
encouraging start to the financial year, trading slowed with gaming revenue from the South African
operations only growing by 3% in the second half compared to 7% in the first half. Revenue was
further impacted by the introduction of the smoking ban in Chile with effect from 1 March 2013.
EBITDA at R2.9 billion was 11% higher than last year, with the EBITDA margin increasing from 27.8%
to 28.6%.
The increase in property and equipment rentals represents a full year's rental for the Maslow hotel
which opened on 7 January 2013, however the lease commenced on 1 January 2012.
The continued weakening of the Rand resulted in foreign exchange profits of R57 million being
realised compared to R79 million in the prior year. Net interest paid of R455 million was 6% below
last year due primarily to lower interest rates.
The tax charge of R477 million increased by 10% due mainly to the higher profits offset in part by
the abolition of STC from 1 April 2012. The effective tax rate, excluding non-deductible preference
share dividends, STC and CGT, was 29% (2012: 28%).
Adjusted headline earnings of R740 million and diluted adjusted headline earnings per share of
715 cents were 20% and 18% above last year, respectively. Excluding the impact of foreign currency
movements and STC, adjusted headline earnings per share increased by 14%.
In light of the subdued second half trading and the number of expansion projects under consideration
the board has declared a final dividend of 155 cents (2012: 150 cents). This brings the total dividend
for the 2013 financial year to 265 cents, 10% up on the prior year.
SEGMENTAL ANALYSIS
EBITDA MARGIN OPERATING
REVENUE EBITDA (%) PROFIT
30 June 30 June 30 June 30 June 30 June 30 June 30 June 30 June
R million 2013 2012 2013 2012 2013 2012 2013 2012
South African
Operations 7 788 7 298 2 217 2 030 28.5 27.8 1 586 1 415
GrandWest 1 866 1 779 789 746 42.3 41.9 691 607
Sun City 1 291 1 230 168 116 13.0 9.4 45 (2)
Carnival City 1 061 1 017 316 298 29.8 29.3 232 219
Sibaya 1 040 980 362 343 34.8 35.0 293 277
Boardwalk 496 451 143 147 28.8 32.6 72 99
Wild Coast Sun 389 308 67 32 17.2 10.4 26 (4)
Carousel 322 312 66 60 20.5 19.2 39 37
Meropa 292 274 113 108 38.7 39.4 96 88
Windmill 255 238 94 84 36.9 35.3 78 68
Morula 230 248 28 35 12.2 14.1 12 18
Table Bay 181 153 22 7 12.2 4.6 2 (14)
Flamingo 152 146 44 40 28.9 27.4 33 28
Golden Valley 128 128 28 33 21.9 25.8 14 16
Maslow 41 (6) (14.6) (29)
Other operating
segments 44 34 (17) (19) (38.6) (55.9) (18) (22)
Other African
Operations 948 873 174 106 18.4 12.1 70 10
Federal Palace 198 173 40 11 20.2 6.4 8 (14)
Zambia 182 167 41 36 22.5 21.6 23 21
Botswana 178 170 50 48 28.1 28.2 39 36
Swaziland 161 149 9 (13) 5.6 (8.7) 2 (20)
Lesotho 118 106 16 12 13.6 11.3 3 (1)
Kalahari Sands 111 108 18 12 16.2 11.1 (5) (12)
Monticello 1 498 1 270 318 262 21.2 20.6 149 120
Management
activities 610 590 244 260 40.0 44.1 196 233
Total operating
segments 10 844 10 031 2 953 2 658 27.2 26.5 2 001 1 778
Central office and
other eliminations (577) (537) (17) (16) (20) (25)
Other income(ii) 21 24
Other expenses(ii) (106) (67)
10 267 9 494 2 936 2 642 28.6 27.8 1 896 1 710
(ii) Refer to EBITDA reconciliation denoted*
REVENUE SEGMENTAL ANALYSIS
Revenue by region and nature is set out below:
Gaming Rooms F&B & other Total
R million 2013 2012 2013 2012 2013 2012 2013 2012
South
Africa* 6 457 5% 6 144 652 17% 558 712 10% 649 7 821 6% 7 351
Other
African 385 10% 349 303 9% 279 260 6% 245 948 9% 873
Monticello 1 353 17% 1 152 2 100% 1 143 22% 117 1 498 18% 1 270
8 195 7% 7 645 957 14% 838 1 115 10% 1 011 10 267 8% 9 494
* Includes Management activities and Central office and other eliminations.
South Africa contributed 76% (77%) of group revenue with 83% coming from gaming. Monticello
with 15% (13%) of group revenue grew revenue in Rands by 18% for the full year despite the fact
that from 1 March 2013 gaming revenue in Rands declined by 2% (21% in Chilean Pesos) as a
consequence of the smoking ban.
Rooms' revenue grew strongly, assisted by the opening of the Boardwalk and Maslow hotels in
December 2012 and January 2013 respectively. On a comparative basis rooms' revenue was up 11%
for the year. As a consequence of the increase in room supply, overall group occupancies declined
1.4% to 62.7% at an achieved daily rate ("ADR") of R1 075, which is 6% up on last year (room nights
sold actually increased by 7.3%). Key properties' occupancies and ADRs are set out below:
Occupancy ADR
2013 2012 2013 2012
Sun City 63.6% 64.2% R1 616 R1 525
Wild Coast Sun 78.3% 84.6% R647 R540
The Table Bay Hotel 53.0% 47.5% R2 086 R1 956
The Maslow 36.3% R1 130
Royal Livingstone and Zambezi Sun 39.8% 42.9% R1 827 R1 647
Gaborone Sun 77.4% 78.4% R792 R727
The Federal Palace 67.6% 61.3% R2 142 R2 001
OPERATIONAL REVIEW
GrandWest revenue was 5% ahead of last year at R1 866 million. As a result of good cost control
the EBITDA margin improved to 42.3% and EBITDA increased 6% to R789 million. There has been no
further news regarding the proposed 2% increase in gaming tax, as announced by the Western Cape
legislature in the budget speech earlier this year.
Carnival City experienced a slowdown in revenue in the second half of the year with revenue
declining 1% against 10% growth in the first half of the year. For the year revenue was up 4% to
R1 061 million driven by 13% growth in tables' revenue. Carnival City's gaming revenue growth is
below the growth in the Gauteng market due to increased competition from Electronic Bingo
Terminals ("EBTs") and Limited Payout Machines ("LPMs") which have proliferated in and around
Ekurhuleni. Despite the below inflation increase in revenue, Carnival City increased its EBITDA 6% to
R316 million and its EBITDA margin improved by 0.5% to 29.8%.
The group's share (Carnival City and Morula) of the Gauteng gaming market declined by 1.2% to
19.0% with both units and in particular Morula negatively impacted by the EBT and LPM sites in and
around Pretoria and Ekurhuleni.
Sibaya revenue and EBITDA grew 6% at R1 040 million and R362 million respectively. The EBITDA
margin of 34.8% was 0.2% below last year primarily due to an increase in gaming levies from
November 2012, which resulted in an additional cost of R4.1 million. Sibaya's share of the KwaZulu-
Natal gaming market of 35.3% was 0.4% lower than last year. The loss in market share is attributed
to an increase in the number of gaming positions at a competitor's facility.
Boardwalk revenue increased 10% to R496 million. However, as a result of the increased cost
structure resulting from the larger property and disruptions during construction, EBITDA declined 3%
to R143 million and the EBITDA margin also declined. The new hotel and conference centre opened
during December 2012 and the refurbishment of the existing gaming floor and the ancillary facilities
were completed during the year. EBITDA in the second half of the financial year was up 7% and we
are confident that the new facilities will result in future growth.
Sun City revenue at R1.3 billion was 5% up on last year. International room nights sold improved by
14% whilst local room nights sold declined 6%. Gaming revenue was up 3% at R446 million. As a
result of excellent cost containment and process improvements, Sun City achieved an EBITDA growth
of 45% to R168 million.
Wild Coast Sun revenue increased 26% to R389 million and EBITDA 109% to R67 million.
Occupancies were 6.3% lower than last year, however room nights sold increased by 35% as a result
of an increase in rooms from 271 to 396 on completion of the redevelopment in June 2012.
The increased room inventory assisted the Wild Coast Sun in achieving growth of 17% in gaming
revenue to R294 million.
Table Bay Hotel achieved good revenue growth on last year although occupancies still remain low
due to the oversupply of inventory in the Cape Town market. ADR increased as a result of higher room
nights sold in the FIT (Free Independent Traveller) and sports and promotion markets. Revenue of
R181 million was 18% ahead of last year resulting in EBITDA of R22 million (2012: R7 million).
The Royal Livingstone and Zambezi Sun's revenue in local currency was 1% down on last year
whilst EBITDA was flat. In Rands, revenue and EBITDA were 9% and 14% up on last year, respectively.
The increased ADR is primarily a result of the strengthening of the US Dollar. Excluding the impact of
exchange rates, the ADR was 0.5% higher than last year. Our properties continue to deal with the
adverse effects of the yellow fever vaccination requirement imposed on Zambia but not on
the Zimbabwean side of Victoria Falls where competing properties are situated.
Gaborone Sun and the other Botswana operations achieved revenue of R178 million, 5% up on last
year due primarily to the strengthening of the Pula against the Rand. EBITDA increased 4% to
R50 million with margins decreasing slightly to 28.1%, impacted by legal fees incurred relating to the
successful objection to the awarding of a fourth casino licence, as well as increased utility and
marketing costs.
In Nigeria, The Federal Palace revenue in local currency was 10% up on last year to NGN3 765 million
(R198 million) with gaming revenue up 19% to NGN1 402 million (R80 million). Costs were
exceptionally well contained resulting in EBITDA increasing 226% to NGN698 million (R40 million)
and the EBITDA margin increasing from 6.4% to 20.2%.
Monticello revenue, in Chilean Pesos, was flat on last year, with the last four months of the year
down 19%, due to the impact of the new anti-smoking legislation. Casino revenues in the Santiago
region grew by only 2% for the year. Monticello's share of the Santiago market declined 2.2% to
66.9% as our competitor expanded its VIP offering. New smoking decks are currently being
constructed which will make the property far more attractive to its smoking guests and should lead
to a recovery in revenues over the medium term.
MANAGEMENT ACTIVITIES
Management fees and related income of R610 million was 3% ahead of last year whilst EBITDA of
R244 million was 6% below last year. The decline in EBITDA is a result of lower project fees received,
higher share based payments costs and certain once off employee restructuring costs.
FINANCIAL POSITION
The group's borrowings at 30 June 2013 of R6.7 billion are marginally below last year. Strong cash
flows generated by operations have offset the debt required for the Boardwalk and Maslow
developments.
Borrowings
30 June 30 June
R million 2013 2012
SunWest (GrandWest and Table Bay) 721 723
Emfuleni Resorts (Boardwalk and Fish River Sun) 708 461
SFI Resorts (Monticello) 553 736
Afrisun Gauteng (Carnival City) 539 461
Transkei Sun (Wild Coast Sun) 349 355
The Tourist Company of Nigeria (Federal Palace) 497 395
Afrisun KZN (Sibaya) 318 304
Mangaung Sun (Windmill) 162 124
Worcester (Golden Valley) 135 142
Meropa 118 110
Teemane (Flamingo) 66 71
Swazispa 23 24
Lesotho Sun 16 27
Sun International Botswana (Gaborone Sun) 2 3
Sands Hotels (Kalahari Sands) 14 22
Central office 2 210 2 491
6 431 6 449
Employee Share Trusts 239 230
6 670 6 679
Capital expenditure incurred during the year
R million
Expansionary:
Boardwalk 306
Maslow 217
Monticello* 34
557
Refurbishment:
Sun City 35
Zambia (Royal Livingstone) 19
Wild Coast Sun 6
Other 13
73
Other ongoing asset replacement** 670
Total capital expenditure 1 300
* The Monticello expansionary capex relates to the purchase of land adjacent to the property for future expansion.
** Other ongoing asset replacement relates primarily to the replacement of gaming and IT equipment.
PROTECTING AND LEVERAGING OUR ASSETS
Boardwalk
The 140 room 5 star hotel, conference centre, parkade, retail complex and musical water extravaganza
were all completed during the period under review. The hotel opened on schedule on 14 December
2012 and has positioned the property as the most desired destination in the Eastern Cape offering
premier conferencing facilities.
The total project expenditure remains within the R1 billion budget. To date R903 million has been
spent on the project with the balance to be spent in the new financial year.
GrandWest exclusivity
Further to an invitation from the Western Cape Provincial Treasury to provide updated information
and comment on the 2010 report of the Bureau of Economic Research of Stellenbosch University
(BER), representatives of the group met with the BER and provided the required information. Since
providing the information no further communication has been received. Based on our extensive
database of guests derived from 12 years of operating in the region, as well as the recent low growth
experienced at GrandWest, we do not believe that there is any significant untapped gaming revenue
in the region certainly nothing that could justify the establishment of another large casino in
the catchment area of the City.
Relocation of Morula casino licence
As announced on SENS on 9 July 2013 the group submitted an application to the Gauteng Gambling
Board to amend its Morula casino licence. This amendment would allow the group to relocate
the casino from Mabopane to Menlyn, Tshwane in order to deliver the full potential of this licence to
the City of Tshwane and the Gauteng Province. The public had until 16 August 2013 to submit
objections to the application. The objections and concerns that have been received are currently being
addressed, whereafter the gambling board will make its decision.
If the application is approved the group has plans to create a new R3 billion urban entertainment
destination to be known as Time Square on Menlyn Maine in Tshwane's eastern suburbs. The
development is part of a new large scale mixed-use "Green City" project which is currently under
development, known as Menlyn Maine. This will, in its final form, be an R8 billion, 315 000m2
precinct, of which R825 million is either already built or under construction. It will comprise a new
shopping mall, a high-end residential component, an office park, hotels and an entertainment node
which is the component that Sun International will provide, and which includes a 110 room 5 star
hotel, 8 000 seat entertainment arena, convention and exhibition facility and a casino with 2 000 slots
and 60 tables.
Sun City
We are currently finalising a number of development plans which will enhance the Sun City offering
including amongst others the refurbishment of the casino, conference facilities and phase 1 of the
highly successful Vacation Club. The improvements to the resort will be self-funded out of Sun City's
operating cash flows and the proceeds from the sale of the Vacation Club units, which will be
launched shortly. The improvements to the resort will ensure that Sun City retains its position as
the country's premier casino and conference destination.
GROWING OUR BUSINESS INTO NEW AREAS AND NEW PRODUCTS
South Africa
The Maslow hotel
The 281 room 4 star Maslow hotel refurbishment in Sandton was completed on schedule in mid-
December 2012 at a total cost of R261 million. The Maslow, which opened to the public on 7 January
2013, has been well received and the group is confident that the hotel will become the preferred
choice in Sandton for business and leisure travellers.
Online sports betting
The R30 million acquisition of Powerbet Gaming (Pty) Ltd, as announced on SENS in the group's third
quarter trading update, is close to completion. The last remaining condition for the acquisition is the
approval of the transaction by the Western Cape Gambling and Racing Board which is expected by
the end of September. The entry into sports betting positions the group well in the event that online
gaming is legalised in South Africa and offers our guests an additional product in a fast growing
industry.
Latin America
Panama
As announced on SENS on 29 November 2012 the group will acquire on a freehold basis, the casino
component, the penthouse level (to be used as a Salon Privé), and certain apartments in the Trump
Ocean Club International Hotel and Tower in Panama City, Panama.
The casino will have approximately 600 slots and 32 tables allocated between the casino component
located on the ground floor and the Privé situated on the top floor overlooking the canal and the City.
Both facilities will have entertainment and food and beverage offerings.
The group has submitted a gaming licence application and is awaiting approval. Other components
of the transaction are well on track and registration of the rezoned components of the building has
been completed. The group is ready to proceed with the development, as soon as the licence is
approved, and the property is expected to open by September 2014.
Colombia
The group is in the process of applying for a casino licence in Colombia and has entered into a long
term lease for the casino component in a new mixed-use development in Cartagena. The development
will also include a 284 room, 5 star InterContinental hotel, convention centre, shops, theatres,
apartments and offices. The lease is conditional on the group securing the casino licence and if
awarded the group will fit-out and equip the casino, which will have 310 slot machines and 16 tables,
at a cost of US$30 million. This opportunity provides the group with a low risk entry into the country's
gaming market which presents a number of larger, exciting opportunities.
Other
Opportunities are currently been considered in other parts of Latin America including Uruguay
and Peru.
OUTLOOK
In the absence of a significant improvement in the current South African economic environment the
group anticipates trading to remain subdued in the forthcoming year. Gaming revenue will
be impacted by a full year's trading under the smoking ban in Chile whilst rooms revenues are
expected to reflect continued good growth off fairly low levels. Given the outlook for low revenue
growth there will be an increased focus on efficiencies and costs with the intent to improve margins
and EBITDA.
We have recently completed three large projects in the form of Wild Coast, Boardwalk expansion and
the Maslow hotel, all delivered on time, on budget and successfully opened. Looking forward we have
an exciting pipeline of new opportunities as outlined above and whilst these will not make a
significant impact on the 2014 financial year they position the group for good growth thereafter.
The outlook has not been reviewed or reported on by the company's auditors.
For and on behalf of the board
MV Moosa GE Stephens
Chairman Chief Executive
23 August 2013
DECLARATION OF FINAL CASH DIVIDEND
Notice is hereby given that a gross final cash dividend of 155 cents per share (131.75 cents net
of dividend withholding tax) for the year ended 30 June 2013 has been declared, payable to
shareholders recorded in the register of the company at the close of business on the record date
appearing below. This dividend has been declared out of income reserves. The number of
ordinary shares in issue at the date of this declaration is 114 129 455. The company has no STC
credits to be utilised to offset against the 15% dividend withholding tax. The salient dates
applicable to the final dividend are as follows:
2013
Last day to trade cum final dividend Friday, 13 September
First day to trade ex final dividend Monday, 16 September
Record date Friday, 20 September
Payment date Monday, 23 September
No share certificates may be dematerialised or rematerialised between Monday, 16 September 2013
and Friday, 20 September 2013 both days inclusive. Dividend cheques will be posted and electronic
payments made, where applicable, to certificated shareholders on the payment date.
Dematerialised shareholders will have their accounts with their Central Securities Depository
Participant or broker credited on the payment date.
Sun International Limiteds tax reference number is: 9875/186/71/1.
By order of the board
CA Reddiar
Group Secretary
26 August 2013
Registered Office:
27 Fredman Drive, Sandown, Sandton 2196
Sponsor:
Rand Merchant Bank (a division of First Rand Bank Limited)
Transfer secretaries:
Computershare Investor Services (Pty) Ltd, 70 Marshall Street, Johannesburg 2001
The profit announcement was prepared under the supervision of the CFO, AM Leeming; Bcom, BAcc,
CA(SA).
Directors:
MV Moosa (Chairman), IN Matthews (Lead Independent Director), GE Stephens (Chief Executive)*,
PD Bacon**, ZBM Bassa, AM Leeming (Chief Financial Officer)*, PL Campher, Dr NN Gwagwa,
BLM Makgabo-Fiskerstrand, KH Mazwai*, B Modise, LM Mojela, GR Rosenthal
*Executive ** British
Group Secretary:
CA Reddiar
26 August 2013
www.suninternational.com
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