South Africa’s Sun International has reported a 9% increase in revenue and a 5% decrease in EBITDA for the six months ended 31 December, 2011. Excluding the impact of foreign exchange movements, adjusted headline earnings increased by 13% on last year. The strengthening of the Rand and Chilean Peso against the US Dollar resulted in a foreign exchange loss of R79 million (2009: - R16 million). Net interest paid decreased by 8% to R243 million as a result of lower interest rates.

Sun International CEO David Coutts-Trotter said that trading conditions in the group's casinos had generally stabilised and that demand for gaming had improved in certain locations, lifting gaming revenues by 8% to R3.5 billion, with slots revenue at R2.9 billion and tables revenue at R0.6 billion, 9% and 6% ahead of last year respectively. He commented, "We anticipate that hospitality revenues will remain soft for the rest of the financial year. Gaming revenues have stabilized and are showing signs of improvement at certain units. Monticello and the Federal Palace continue to increase their contribution to the group's results.”

Sun International’s Monticello casino in Chile saw revenues increase by 30% to R512 million whilst EBITDA increased 85% to R67 million, reflecting in an improvement in the EBITDA margin of 3.9 percentage points to 13.1%. Costs were impacted to an extent by a strike that lasted for a month during the period. Revenue from Botswana was 2% ahead of last year at R83 million and Federal Palace in Nigeria generated revenue of R69 million. The Royal Livingstone and Zambezi Sun hotels in Zambia saw a 7% decline in occupancy from last year.

In South Africa revenue increased at GrandWest (6%), Sibaya (6%), Boardwalk (11%), Carnival City (3%), and Sun City (8%). The second phase of the Wild Coast Sun R400 million refurbishment project was completed in December 2010, with the third phase now under way. The new salon prive at Windmill Casino in Bloemfontein was completed in November 2010 at a cost of R30 million. The refurbishment of the Kalahari Sands' 173 rooms, restaurant and kitchen will be completed by April 2011 at an estimated cost of R89 million.

The 9% increase in revenue to R4.5 billion was achieved despite lower overseas visitor numbers. Occupancies declined by 10 percentage points to 44% due to a decline in demand primarily from the markets of the United States and United Kingdom and increased rooms inventory in Cape Town. David Coutts-Trotter concluded, “Growth in adjusted headline earnings per share for the full year (excluding foreign exchange earnings) is anticipated, although this is likely to be below that achieved for the first half." (E-03.01.11)

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