The KwaZulu-Natal casinos are presently the shining stars for operators, with both Gold Reef Resorts (Golden Horse Casino in Pietermaritzburg) and Sun International (Sibaya Casino near Durban) reporting gross gaming revenue growth. On 28 August Sun International made a profit and dividend announcement for the year ended 30 June 2008. Gaming revenue was up 9% while hospitality and other revenue increased by 12%. The declared final dividend of 258 cents, bringing total dividends for the year to 480 cents per share, was 20% ahead of last year’s dividends, in line with the group’s stated intention to continue increasing dividends.

The unaudited interim results for the six months ended 30 June 2008 announced yesterday by Gold Reef Resorts show that flagship Gold Reef City was affected by the opening of the company’s Silverstar Casino in the same province of Gauteng. Although the Gauteng gaming market grew by 7.3% during the period, Gold Reef City revenue was down. Silverstar, which opened in December with 756 slots and 26 tables, saw margins improve steadily and the next six months are expected to see revenue growth once all the facilities are complete.

The commentary from the Gold Reef Resorts Board stated, “Notwithstanding the current economic downturn, Gold Reef remains optimistic that its business can withstand negative economic indicators and continues to position the group for growth. Further, the revamp of two existing casinos and opening of two new casinos have effectively ensured that Gold Reef has a largely 'new' portfolio to accelerate growth in an economic upturn. The two new casinos will continue to contribute in the current year when the benefits of the first full year of trading will be realised. All remaining operations are expected to perform soundly.”

Sun International commented that the group achieved satisfactory growth in revenue, which at R7.6 billion (US$956.2 million) was 10% ahead of last year. Taxation was 17% higher than the previous year. The company has submitted a renewal application for one of its properties in the Eastern Cape, where the licence is due to expire in August 2009. It is the only applicant for the licence in Zone 5 where Sun International operates the Wild Coast Sun. The company says that the economic environment in the Eastern Cape is difficult but its licence bid proposes a R340 million (US$42.7 million) upgrade and enhancement of the casino resort. (E-09.04.08)

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