Casino operator positive despite 50% downturn

Sun International, the major South African casino operator, remains optimistic despite its profits falling by almost 50 per cent.

The group’s financial results showed that there was a R1.1bn (€62.8m) loss in 2020 as a direct result of the pandemic closures. All of South Africa’s hospitality industry had to close for just over three months in the year and after reopening have been beset with restrictions.

The largest loss was at Sun City in North West province, the largest venue, as it was only permitted to open in September, while most of the rest of the country’s hospitality was shut down only between late March and June. Sun City’s revenues were hit by a reduction of almost R900m (€51.4m).

The income from overall operations fell by 49 per cent from R11.8bn  (€674m) to R6.1bn (€348.4m) and EBITDA fell by 72 per cent from R3.2bn (€182.7m) to R897m (€51.2m).

However, the group is predicting a slow but sure recovery in its fortunes. International CEO Anthony Leeming said: “Several initiatives were undertaken which are having and will have a positive impact on the group’s future results.”