Sun International reports revenue rise

South Africa-based international casino operator Sun International has reported a 10 per cent increase in revenue to R5.2bn and healthy EBITDA growth of 20 per cent in its interim results to the end of December 2012.

Newly appointed CEO Graeme Stephens said gaming revenue was up by 11per cent to R3.9bn, with growth from slots and tables at 11 and nine per cent respectively.

A large component of the growth came from the group's Chilean operation, Monticello, and excluding this the gaming revenue for the rest of the business was seven per cent ahead of last year. A strong slots performance drove Monticello’s revenue up by 31per cent to R807m.

GrandWest remains the flagship for the group and the property increased revenue and EBITDA by five per cent for the period to R928m and R387m respectively. The EBITDA margin at the property was maintained through good cost control.

In Gauteng good growth, primarily from tables, drove Carnival City revenue up 10 per cent on last year to R554m. Strong revenue growth, efficiency improvements and good cost control resulted in EBITDA increasing 23 per cent to R173m.

Revenue at Sibaya grew by nine per cent to R524m with EBITDA growth of eight per cent to R178m.

In Port Elizabeth the 140-room, five star Boardwalk Hotel, 3000sq.m conference centre, retail complex and musical water extravaganza were all completed (on budget) during the period under review and were opened on December 14, 2012.

Despite disruption from the R1bn expansion project and the challenging economic environment, the Boardwalk lifted revenues by four per cent to R236m over the previous year but EBITDA declined 11 per cent to R71m.

Despite the difficult trading environment, the hotels and resorts division achieved revenue of R1.3bn, up six per cent from last year. Occupancy dropped two percentage points to 61.3 per cent, mainly as a result of an additional 150 rooms now available at the Wild Coast Sun.

Sun City improved revenues by three per cent from last year to R653m, boosted by an increase in foreign visitors to South Africa. Properties in Zambia, Nigeria, Botswana, Swaziland and Namibia grew revenues by six per cent over the previous year to R416m. Casino revenues across the African properties reflected a growth of eight per cent to R169m over last year.