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Sun International [JSE:SUI] released its full year results on Monday, reporting revenue growth of 7% and an increase in earnings before interest, tax, depreciation and amortisation (EBITDA) of 5%.
South African comparable income grew 1%, and Latin America grew 6%. Adjusted headline earnings from continuing operations decreased from R485m to R472m, 3% below the prior year.
Adjusted headline earnings per share was, however, up 4% to 316 cents per share.
The increase in VAT took R44m off the operating profit line.
South African debt levels were reduced from R11.4bn at December 2017 to R9.2bn at the end of this financial year.
According to a statement, in South Africa, GrandWest, Sibaya and the Wild Coast Sun performed to expectation, while Sun City, Carnival City, Boardwalk and the Table Bay came under pressure.
The Table Bay Hotel was severely impacted by the water crisis in Cape Town, but the situation has now improved.
Sun Slots produced strong results with income increasing 10% and EBITDA 15%.
Time Square in Pretoria showed good growth, particularly in the second half of the year with casino income up 19%.
The company said it is dealing firmly with loss-making operations and has already begun the restructure of both Boardwalk and Carousel.
The company concluded the acquisition of an additional 9.86% interest in Sun Dreams in Chile during May 2018 at a purchase price of R832m, increasing its interest to approximately 65%.
It also concluded the acquisitions of Thunderbird Resorts in Peru for R317m in April 2018 and the Park Hyatt Hotel, Casino & Spa in Mendoza, Argentina for R333m in July 2018.
Given the continued focus on reducing debt levels, the board has decided not to declare and pay a dividend for the year under review.
Looking ahead, the company expects continued pressure on disposable income for the South African consumers and will continue to work hard on maximising efficiencies and reducing costs.
By mid-morning shares were trading down 0.64% at R55.98 per share.
