HOTEL and leisure group Sun International has reported that casino revenues for the September quarter were 19% ahead of last year. Rooms revenue remained under pressure, it said, but total hospitality revenue increased by 8% over the last year and EBITDA, at R429m (US$64.8m) for the quarter, was 20% up on last year. GrandWest, Sibaya, Boardwalk and Carnival City performed well, achieving revenue growth of 23%, 32%, 15% and 16% respectively. In addition the recently refurbished Morula and Carousel casinos had an excellent quarter with revenues 24% and 20% up respectively.

The group said the Windmill Casino and Entertainment Centre in Bloemfontein was successfully opened to the public on September 30 2005 at a cost to the group of R165m (US$24.9m), and that initial trading had exceeded expectations. Construction has also commenced on the 118-room Sibaya Lodge that is scheduled for completion during the first quarter of the 2007 financial year at a cost of approximately R83m (US$12.5m). Development of the 150-slot Worcester casino has started and is expected to be completed during the second quarter of the 2007 financial year at a cost of approximately R135m (US$20.4m).

Sun International said that approval had also been obtained from the Western Cape Gambling and Racing Board for a significant expansion of the GrandWest Casino & Entertainment World, including an increase in the number of slot positions from the current 1,814 to 2,324. The extension is expected to cost approximately R320m (US$48.4m) and will include the construction of a new smoking casino and related facilities, an upgrade to the Salon Privé, an extension to the covered parking, the construction of a 5,000-seat multipurpose arena, and a significant enhancement to the family entertainment facilities.

The group also said that it was well advanced in finalising the introduction of an empowerment consortium as shareholders in Sun International Limited, a requirement in terms of the group’s North West Province gaming licences, and stated, "It is proposed that the consortium will include various broad-based North West Province groupings and the Sun International Employee Share Trust. The group is in the process of finalising the shareholding and funding structures and a further announcement will be made shortly." (E-10.26.05)

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