Under the terms of the JSE Securities Exchange South Africa Listings Requirements, any company that is reasonably certain that their financial results will vary by more than 20% from the previous corresponding period must publish a Trading Statement. One such Statement has been issued by Gold Reef Casino Resorts Limited (GDF), a gaming and entertainment company. Results for the year ended 31 December, 2004 will not be published until early March, but the company predicts a net profit attributable to shareholders and headline earnings for the year of 40% to 60% higher than 2003.

The gaming industry in South Africa, as in Nevada, has seen revenues booming as the economy strengthens. People with more disposable income have been seeking out the entertainment venues throughout the country and the casinos are profiting. Gold Reef and various subsidiaries own five casinos: Gold Reef City in Gauteng; the Garden Route Casino; Casino Mykonos and the Golden Horse in the Western Cape; and the Goldfields Casino opened last month in Welkom.

Another casino to open last month in South Africa is Sun International’s Sibaya Casino near Durban. Visitor numbers have already topped 500,000 at the resort where the iZulu theatre has been at 91% capacity for performances of the African Footprint production. Richard Loring’s acclaimed musical showcases South Africa’s cultural diversity with an “explosive stampede of song and dance,” merging the inspiring poetry of Don Mattera with the haunting and hypnotic sounds of drums and pennywhistle and the vibrant ethnic dances.

The Sibaya complex employs around 1,300 people and during the construction of the R727 million ($120.5 million) project an estimated 10,000 jobs were created. The addition of a 120-room hotel will be completed in 2006; the luxury Royal Sibaya Hotel has just 12 suites and 24 rooms. Improved road access to the resort will also open the Northern Corridor region of Durban for future development, which should bring much needed economic benefits to KwaZulu-Natal.

The New Year is off to a good start for Gold Reef Casino Resorts and Sun International. (E-01.20.05)

© Copyright 2005 CasinoCompendium



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