Tsogo Sun reports increase in headline earnings

Tsogo Sun Holdings posted a 18 percent rise in full-year adjusted headline earnings per share to 176.5 cents in the year to March.

JSE-listed hotel and gaming group, Tsogo Sun Holdings posted a 18 percent rise in full-year adjusted headline earnings per share to 176.5 cents in the year to March.

The group says the rise was boosted by merger and acquisition activity undertaken as part of its growth strategy.

Total income was up 9% to R10.8bn‚ with a 5% growth in gaming win assisted by 16% growth in hotel rooms revenue and 22% growth in food and beverage revenue.

Earnings before interest‚ income tax‚ depreciation‚ amortisation‚ property rentals‚ long-term incentives and exceptional items was up 8% to R4.2bn.

The declared final dividend of 60c per share was up 18% from a year ago.

Tsogo invested R2.4bn in the review period as part of its growth strategy. Among other things‚ it had begun construction of the $30m expansion of Southern Sun Maputo.

The company said the continued improvement in trading performance across its operations during the year remained encouraging.

“The sustainability of this growth is uncertain due to the weaker second-half trading‚ ongoing macroeconomic pressure and weak consumer sentiment.

"Nevertheless‚ the group remains highly cash generative and continues to pursue significant opportunities to invest capital in its growth strategy‚” it said.