Rand eats into Sun International earnings
Johannesburg - Gaming and hotel group Sun International [JSE:SUI] reported a flat first-half profit, hit by unfavourable swings in currencies and warned of little growth for the remainder of the year.
Sun International, which runs South Africa's Sun City resort, said on Monday adjusted headline earnings per share totalled 215 cents in the six months to end-December, little changed from the previous year.
The company, whose revenue grew to R3.4bn from R3.2bn, said excluding the currency movements, headline earnings per share would have grown 13%.
Shares in Sun International edged down 0.20% to R97.80 by 09:30, in line with the broader JSE All-share index.
Sun International has lost nearly 7% of its market value this year, underscoring the tough climate in South Africa, where consumers are squeezed by high debt and unemployment.
The company said it expected little growth in the remainder of the year, due to a slow recovery at its gaming unit and weaker business in its hotels unit.