Share

Tsogo Sun reports profit dip, shares fall

Johannesburg  - Africa's biggest hotels and casino operator Tsogo Sun Holdings reported a 4% decline in first-half profit on Thursday, hit by a tax charge and a decline in leisure spending from the weak economy.

Tsogo, which concluded a $2.2bn merger with rival Gold Reef Resorts earlier this year, said headline earnings per share totalled 50.1 cents in the six months to end-September compared with 52.1c a year earlier.

Tsogo, 40% owned by brewing giant SABMiller [JSE:SAB], said it took a R67m ($8.2m) tax charge on a final dividend.

The company, along with its competitors Sun International [JSE:SUI] and City Lodge, has been struggling in recent months as the weak economy is keeping consumers from gambling and leisure and business travel.

Tsogo is valued at $2.4bn, putting it among the top 20 casinos and hotels companies in the world. It said it had enough cash to pursue its growth strategy. Cash and cash equivalents rose to R984m from R418m.

Shares in the company, which are down about 15% so far this year, fell 3.32% to R16, underperforming a 0.44% gain in Sun International.
We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.92
+0.1%
Rand - Pound
23.87
+0.2%
Rand - Euro
20.39
+0.2%
Rand - Aus dollar
12.32
+0.1%
Rand - Yen
0.13
+0.1%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders