South African hotel and gaming group Peermont Global has reported its operating figures for the first half of 2006. Revenue grew 24% to R697 million (US$97 million) and gaming revenue also grew by 24% to R556.9 million (US$77.6 million). Operating profit, up 27%, was R229 million (US$31.9 million). Bids for three new casino licences in Northern Cape and Eastern Cape had cost R3.4 million (US$473,366) in the six months to 30 June, but the outcome will not be known until next year.

Ernie Joubert, Managing Director of Peermont Global commented “The additional positions we added last year contributed to strong growth in gross gaming revenue of 12.6 percent. The Mondior Concorde at Emperors Palace has performed to expectation since opening in March.” Revenue from Mondior is expected to grow as the hotel becomes established.

Recent rises in interest and fuel costs are likely to affect the disposable incomes of South African gaming industry patrons, as well as the decline in the dollar/rand exchange rate. However, Peermont Global anticipates that full year results should show real growth in revenues and profits. The company recently acquired Tusk Casino Resorts and Hotels Group, adding 4 more casinos properties to its Emperors Palace,Gauteng; Graceland, Mpumalanga; and The Grand Palm, Gaberone casino operations. (E-09.04.06)

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