Tsogo’s profits fall as revenue growth remains under pressure

Casino owner Tsogo reported that profits have fallen as revenue growth remained under pressure in a market with limited discretionary spend and consumer behaviour changes since the Covid-19 pandemic.

Tsogo, which owns Gold Reef City and Montecasino among its gambling assets, reported profit after tax for the year to end-March had declined 13% to R1.5bn.

Income was up 2% at R11.5bn, while headline earnings per share (HEPS) rose 11% to 169c, the group said in a statement on Thursday. A dividend of 40c per share was declared.

The cost of diesel and the effects of load-shedding had a negatively effect on the group’s results, it said.

The group reduced net interest-bearing debt and guarantees to R7.67bn from R8.05bn. 

Tsogo spent R130m on generators and solar power, R76m to upgrade Emerald Resort & Casino, R88m on share buybacks and R908m on ordinary dividend payments during the year.

The group said its Gauteng operations delivered “relatively solid results” notwithstanding the tough trading conditions, while KwaZulu-Natal and Western Cape achieved “fairly stable revenue”.

The group said it had evaluated the costs in some of its business units to improve efficiencies as a result of load-shedding and high inflation, which had affected the income and cost saving measures it had implemented in the past two years.

It has made good progress in its solar energy projects, which will continue in the 20205 financial year.

Upgrading Emerald would take about another year and a half, it said.

The online netting platforms playTSOGO and Bet.co.za provided “exciting prospects for growth”, it said. “The group is in the process of resolving the regulatory frustrations it has faced in this space, thereby enabling it to focus on expediting growth more aggressively in the second half of the 2025 financial year,” it said.


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