SUN INTERNATIONAL LIMITED - Trading Statement and Business Update

Release Date: 21/08/2018 17:05
Code(s): SUI
Wrap Text
Trading Statement and Business Update

(Incorporated in the Republic of South Africa)
(Registration number: 1967/007528/06)
Share code: SUI
ISIN: ZAE000097580
("Sun International" or “the Company”)


The Sun International group (“the Group”) is currently finalising its financial results for the half-year
period ended 30 June 2018, which are expected to be released on the Stock Exchange News Service
of the JSE Limited (“SENS”) on or about Monday 3 September 2018.

Trading Statement for the Half Year Ended 30 June 2018
Shareholders are advised that a reasonable degree of certainty exists that the Company’s:
-   basic earnings per share for the financial half year ended 30 June 2018 is expected to be a profit
    of between 99 cents per share and 119 cents per share compared against the prior
    corresponding period’s loss of 59 cents per share;
-   headline earnings per share for the financial half year ended 30 June 2018 is expected to be a
    profit of between 112 cents per share and 135 cents per share compared against the prior
    corresponding period’s headline earnings loss of 78 cents per share; and
-   adjusted diluted headline earnings per share is expected to be a profit of between 96 cents per
    share and 115 cents per share against the prior corresponding period’s profit of 198 cents per

Business Update
Trading in the first half of the year remained challenging in South Africa with continued pressure on
disposable income, a VAT increase and a deteriorating economic climate. Trading in Chile remained
subdued while in Peru good growth was experienced.

During the period under review, Group income increased by 4% to R7.9 billion. South African
comparable income (excluding Time Square, Fish River and Morula) was up by 1%. In Chile, income
increased by 2% with Monticello income up by 6%. With the closure of the Sun Nao casino in
December 2017 and the downscaling of the Ocean Sun casino’s operation, income from Colombia
and Panama was well down on the prior corresponding period.

Group EBITDA increased by 6% to R2.0 billion while on a comparable basis Group EBITDA increased
by 2% to R1.8 billion. The increase in the VAT rate from 14% to 15% affected EBITDA by
approximately R21 million.

Time Square has shown strong growth in activity although the win percentage has been well below
expectation. Time Square achieved income of R582 million and EBITDA of R130 million for the 6
month period. Recent trading has been encouraging with casino income in July up 32% on the prior
corresponding period.

The Group’s attributable loss from Time Square increased from R63 million in the prior corresponding
period to R182 million during the period under review due to higher depreciation and interest
charges together with no tax relief from the losses.

Rights Offer and Borrowings
Shareholders are referred to the rights offer which was oversubscribed by shareholders and
successfully concluded by the Company during the review period, when an amount of R1.6 billion
was raised as a result thereof.

Following the conclusion of the rights offer, Sun International’s borrowings, as at 30 June 2018 stood
at R15.1 billion, of which R9.7 billion was attributable to the South African balance sheet. The South
African debt to EBITDA ratio which was 3.7x at 31 December 2017, reduced to 3.2x at 30 June 2018.
The debt in Latam increased following the acquisition of a minority’s 20% interest in Sun Dreams
(10% effectively acquired by Sun International) and the acquisition of Thunderbird Resorts in Peru.

This trading statement and business update has not been reviewed or reported on by Sun
International’s external auditor.

By order of the Board.

21 August 2018

Sponsor to Sun International


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