South Africa's Tsogo Sun posts 12 pct rise in full-year profit

by Reuters 0

Tsogo Sun Holdings Ltd, Africa’s biggest hotels and gambling operator, on Wednesday reported a 12 percent rise in full-year profit as its South African accommodation business showed signs of a recovery in the last three months.

The company, which also operates hotels in Nigeria, Kenya and Mozambique, said headline earnings per share (EPS) came in at 196.5 cents in the year to end-March, from 175 cents a year earlier.

Headline EPS is the main profit measure in South Africa and strips out certain one-off items.

The weak state of the South African economy and many of the commodity-focused countries in which Tsogo operates will keep trading under pressure, the company said in a statement.

“However, the fourth quarter of the financial year was strong in both the gaming and particularly the South African hotel environment,” it said.

Hotel revenue from outside its home market had increased by 25 percent to 691 million rand ($44.26 million), the company said, but still represented only about a quarter of its South African accommodation income.