Publications
Partners
Johannesburg - Phumelela Gaming and Leisure [JSE:PHM] on Friday reported a 9% decline in diluted headline earnings per share to 42.77 cents for the six months ended January 2011 from 47.10 cents a year ago.
The company declared an interim dividend of 25 cents per share.
The company said local trading conditions, particularly for the group's bookmaker and other agent totalisator operations, remained challenging while the strong rand against the major trading currencies impacted negatively on its international operations.
Despite this, profit before income tax from the group's international and ongoing fixed odds (Betting World) operations increased by 20% and 12% respectively.
Total income decreased by 1% to R443.4m, primarily due to income from the terminated Racing UK (RUK) rights agreement included in the comparative period after the agreement was terminated on 28 February 2010. Excluding RUK income, total income increased by 5%.
Total net betting income increased by 3% to R333.5m. Excluding RUK income in the comparative period, other operating income increased by 16%.
Profit before finance costs, income tax, depreciation and amortisation decreased by 4% to R71.3m, while profit from operations decreased by 7% to R54.2m and attributable earnings declined by 17% to R32m.
The group is engaged in talks for a possible merger with the Western Cape racing region following agreement between the KwaZulu-Natal and the Western Cape Boards to unbundle Gold Circle operations.
In addition, in terms of a recent agreement concluded between Phumelela Gold Enterprises and Tabcorp Holdings (Australia), the parties have agreed to joint ownership and control of the group's Isle of Man totalisator operation with the strategic intent of opportunities. The agreement is conditional on receiving all the necessary regulatory and racing industry approvals.
Looking ahead, the group said despite difficult trading conditions management is encouraged by a marked improvement in the local betting handle trend from January 2011 to date. If the current momentum is maintained local operations are positioned for growth in the second half. International operations continue to trade well despite Rand strength and the loss of the RUK rights, the company added.
The company declared an interim dividend of 25 cents per share.
The company said local trading conditions, particularly for the group's bookmaker and other agent totalisator operations, remained challenging while the strong rand against the major trading currencies impacted negatively on its international operations.
Despite this, profit before income tax from the group's international and ongoing fixed odds (Betting World) operations increased by 20% and 12% respectively.
Total income decreased by 1% to R443.4m, primarily due to income from the terminated Racing UK (RUK) rights agreement included in the comparative period after the agreement was terminated on 28 February 2010. Excluding RUK income, total income increased by 5%.
Total net betting income increased by 3% to R333.5m. Excluding RUK income in the comparative period, other operating income increased by 16%.
Profit before finance costs, income tax, depreciation and amortisation decreased by 4% to R71.3m, while profit from operations decreased by 7% to R54.2m and attributable earnings declined by 17% to R32m.
The group is engaged in talks for a possible merger with the Western Cape racing region following agreement between the KwaZulu-Natal and the Western Cape Boards to unbundle Gold Circle operations.
In addition, in terms of a recent agreement concluded between Phumelela Gold Enterprises and Tabcorp Holdings (Australia), the parties have agreed to joint ownership and control of the group's Isle of Man totalisator operation with the strategic intent of opportunities. The agreement is conditional on receiving all the necessary regulatory and racing industry approvals.
Looking ahead, the group said despite difficult trading conditions management is encouraged by a marked improvement in the local betting handle trend from January 2011 to date. If the current momentum is maintained local operations are positioned for growth in the second half. International operations continue to trade well despite Rand strength and the loss of the RUK rights, the company added.
