With all its casinos performing well, the future continues to look positive for Sun International. South Africa’s major leisure and resorts group has reported a 16% increase in revenue, with an 18% rise in gaming revenue to R4.5 billion (US$629.1 million). Part of this was contributed by the new Windmill operation in Bloemfontein, which has exceeded expectations.

The Sun International operation in the Western Cape, GrandWest, is presently being expanded to cope with demand. Slot machine numbers are to be increased to 2500. In KwaZulu-Natal the Sibaya casino, having completed a full year of operation, saw its revenue increase by 21% and its share of the local market increase to 35.5%.

Successful marketing campaigns and a less strong Rand have attributed to more international visitors at the group’s casino resorts. Room occupancies have risen to 71% overall. Despite an increase in room rates, room occupancy at Sun City was 75%. Hotel revenue for the first half of 2006 was R681 million (US$95.3 million).

The Sun International offer for Real Africa Holdings (RAH) has been accepted by 53% of shareholders and the company now owns 55%. The RAH Board is known to consider that the offer price is too low and has advised its shareholders not to accept. The closing date for the offer is 15 September and Sun International may not achieve the desired total ownership in the short term. (E-08.29.06)

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