Sun International reports unaudited Interim Results
Including LatAm’s Sun Dream ops for the six-month period ended 30 June 2018
Global casino and hotels leader, Sun International has submitted condensed consolidated financial information for the six months interim period ending 30 June 2018 which, “has been prepared in accordance with the requirements of the JSE Limited Listings Requirements and the South African Companies Act No 71 of 2008. The Listings Requirements require provisional reports to be prepared in accordance with the framework concepts.
The SI report for Latin America includes the historic trading of Sun Dreams for the six months ended 30 June 2017, with the conversion at the average exchange rate for the six-month period ended 30 June 2018, to enable comparison in Rands.
However, the presentation of the LatAm ops financial information on a constant currency basis falls into the category of non-application of a specific IFRS requirement and is therefore regarded as pro forma information, per the JSE Listings Requirements.
Sun International reports, adds: “The pro forma information has been prepared for illustrative purposes only and because of its nature, it may not fairly present the group’s financial position, changes in equity, results of operations or cash flow. The proforma information has been extracted from management accounts. Shareholders are further advised that the above information has not been reviewed or reported on by our auditors.”
Overall, income from Chile increased by 2% to CLP106 billion (US$153.5 billion) while EBITDA decreased by 3% to CLP30.2 billion (US$43.5 million). Monticello
benefitted from its new entertainment arena and a refresh of its restaurant offering. This helped drive footfall and income, which was up 6%, with EBITDA up by 10%. In addition, certain costs were moved from Monticello to the central office.
The closure of the International VIP Business and the 66th floor of the Ocean Sun Casino led to a decrease in income and a significant reduction in costs. While the property has continued to incur a loss, we are moving closer to a breakeven situation. We continue pursuing opportunities to sell the 65th and 66th floors of the Towers where the Ocean Sun Casino is situated.
Following the closure of the Sun Nao Casino in Colombia, SI, reports, “we opened a few small low-cost slot halls utilising the machines and tables from the Sun Nao casino. This model is more appropriate for the Colombian market and although we continue to incur a small loss, we believe there is further potential to expand in Colombia and turn the business into a profitable venture. We have settled the outstanding rental for the Sun Nao casino at US$1.5 million, $US2.3 million below what we have provided for.”
The Peruvian operations (excluding Thunderbird Resorts) increased income by 13% and EBITDA by 67% to R30 million (US$2 million). Thunderbird Resorts, which was consolidated from April 2018, contributed R54 million (US$3.6 million) in income and R8 million in EBITDA, US$530.000. The performance was below expectations in the first few months due to low win percentages; however, in the last few months the property has met expectations.”
