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Sun profits take a beating

Feb 26 2010 15:05

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Johannesburg - South Africa's biggest casino and hotels group Sun International posted a 36% fall in first-half profit as fewer people visit its hotels and casino due to the economic downturn.

Sun International, which operates the popular Sun City resort, said on Friday adjusted headline earnings per share fell to 216c in the six months to end-December, worse than its forecast range of a 20%-30% decline.

The company has been hit as consumers in Africa's biggest economy, battling job losses and high personal debts, stay away from gambling, while tourism from abroad has slowed due to the global financial crisis.

Revenue rose 2% to R4.1bn and earnings before interest, tax, depreciation and amortisation was 11% lower at R1.2bn.

Shares in the company rose 1.66% to R91.95 by 12:34 GMT, outpacing a 0.04% higher JSE All-share index.

- Reuters

 
 
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