Condensed unaudited cosolidated interim financial results for the six months ended 30 September 2019
Tsogo Sun Gaming Limited
(previously 'Tsogo Sun Holdings Limited')
(Incorporated in the Republic of South Africa)
(Registration number 1989/002108/06)
Share code: TSH ISIN:
('Tsogo Sun' or 'the company' or 'the group')
CONDENSED UNAUDITED CONSOLIDATED INTERIM FINANCIAL RESULTS
for the six months ended 30 September 2019
- Income R6.0 billion up 5%
- Operating profit R1.5 billion up 3%
- Ebitdar R2.0 billion up 4%
- Interim dividend per share 26.0 cents
- Debt : Ebitda 2.8x unchanged
- EPS 114.7 cents* up 63%
- HEPS 66.9 cents* down 13%
- Adjusted HEPS 68.4 cents* down 13%
- Net asset value R3.4 billion down 67%
* Including discontinued operations
REVIEW OF CONTINUING OPERATIONS
The group unbundled its entire holding in Tsogo Sun Hotels Limited to its shareholders on 14 June 2019 by
way of a distribution in specie. The effective disposal date when the board approved the distribution was
on 23 May 2019, and, in terms of IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, the
group has accounted for the hotels division as held for distribution to owners and the group income statement
and cash flow statement have been restated. The commentary that follows thus relates to the gaming business
remaining in the group.
Total income for the six months of R6.0 billion ended 5% above the prior period. Gaming win and food and
beverage achieved 5% growth while hotel rooms revenue realised an increase of 2%.
Operating expenses, including gaming levies and VAT and employee costs, but excluding exceptional items and
long-term incentives, increased by 5% on the prior period, which was controlled mainly due to the focus on
reducing casino and head office overheads.
Earnings before interest, income tax, depreciation, amortisation, long-term incentives and exceptional items
('Ebitdar') at R2.0 billion for the six months was 4% up on the prior period. The overall group Ebitdar
margin remained consistent.
The group has intensified its focus on cutting costs and to improve operational efficiency especially at
head office and casino level. The effect will be evident into the next financial year. The bingo and LPM
divisions' ongoing improvements in the quality of product and sites should continue to deliver positive
growth. With the further focus of appropriate and reduced capital expenditure spend, the group intends to
reduce debt levels in the next financial year.
The board of directors has declared an interim gross cash dividend from income reserves in respect of the
six months ended 30 September 2019 of 26.0 (twenty-six) cents per share. The dividend has been declared in
South African currency and is payable to shareholders recorded in the register of the company at close of
business Friday, 13 December 2019. The number of ordinary shares in issue at the date of this declaration is
1 056 836 612 (excluding treasury shares of 4 059 100). The dividend will be subject to a local dividend tax
rate of 20%, which will result in a net dividend of 20.8 cents per share to those shareholders who are not
exempt from paying dividend tax. The company's tax reference number is 9250039717.
In compliance with the requirements of Strate, the electronic and custody system used by the JSE, the
following dates are applicable in 2019:
Last date to trade cum dividend Tuesday, 10 December
Shares trade ex dividend Wednesday, 11 December
Record date Friday, 13 December
Payment date Tuesday, 17 December
Share certificates may not be dematerialised or rematerialised during the period Wednesday, 11 December 2019
and Friday, 13 December 2019, both days inclusive. On Tuesday, 17 December 2019, the cash dividend will be
electronically transferred to the bank accounts of all certificated shareholders where this facility is
available. Where electronic fund transfer is not available or desired, cheques dated 17 December 2019 will
be posted on that date. Shareholders who have dematerialised their share certificates will have their
accounts at their CSDP or broker credited on Tuesday, 17 December 2019.
The contents of this short form announcement are the responsibility of the board of directors of Tsogo Sun.
Shareholders are advised that this short form announcement represents a summary of the information
contained in the full announcement. Any investment decisions by investors and/or shareholders should be
based on consideration of the full announcement as a whole and shareholders are encouraged to review the full
announcement, which is available at: https://senspdf.jse.co.za/documents/2019/jse/isse/TSGE/Interims.pdf and
on the group's website at https://www.tsogosun.com/gaming. In addition, copies may be requested from the
company's registered office, at no charge, during office hours by contacting the Company Secretary at
Private Bag X200, Bryanston, 2021.
SPONSOR: Investec Bank Limited, 100 Grayston Drive, Sandton, 2196
(PO Box 785700, Sandton, 2146)
21 November 2019
Date: 21/11/2019 08:00:00
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