Tsogo’s HY adjusted HEPS remain flat

by Trust Matsilele 0

The group’s adjusted headline earnings per share remained at 81 cents with an interim dividend of 29 cents unchanged for the same comparable period, Tsogo’s results for the six months ended 30 September 2014 reported.

(READ MORE: Tsogo Sun acquires a stake in two casino businesses)

The company saw a four per cent increase on its income to 5.4 billion rand.

“Trading during the first half of the financial year reflected continued pressure on the consumer due to the macro-economic environment and weak sentiment,” said the group in a statement.

“Year-on-year growth was, however, achieved in both casino and hotel revenues and the trading results were positively impacted by the acquisition of the hotel assets from Liberty.”

The group also attributed growth to the acquisition in the prior year of a stake in Southern Sun Ikoyi offset by the closure of Southern Sun Maputo and Garden Court De Waal for refurbishment, the sale of Garden Court Sandton.

[DATA TSH:Tsogo Sun Holdings Limited] also noted impact on growth having been influenced by the post-election and fiscal austerity impacts on government travel in South Africa, the impact of the Ebola epidemic on hotel occupancies mainly outside South Africa, and foreign exchange gains in the prior period.

(READ MORE:Tsogo  acquires 25% interest in Redefine BDL)

The group also opened the 353-roomed Southern Sun Abu Dhabi under management contract in the United Arab Emirates on 30 April 2014 and concluded a management agreement for a 150-room hotel in Tete Mozambique to be opened in the second quarter of 2015.

The group is positive over future prospects on operations.

“Nevertheless, the group remains highly cash generative and is confident in achieving attractive returns from the growth strategy once the macro environment improves.”