GAMBLING: Cape Town's Lucrative Platforms
Recent Western Cape Business News
CAPE TOWN is shaping up as a highly lucrative centre for alternative gaming platforms judging by the promising and profitable endeavours of two JSE listed companies.
Cape-based empowerment company Grand Parade Investments (GPI) may soon cast off its reputation as Sun International’s ‘BEE guys in Cape Town’.
While GPI’s significant minority stakes in the GrandWest and Worcester casinos are extremely valuable (especially in terms of dividend flows), GPI is pushing ahead admirably with its own gaming initiatives with Limited Payout Machines (LPMs) under the Grandslots banner.
A closer look at GPI’s interim results to end December shows that Grandslots – which holds its biggest presence in the Western Cape – is growing rather rapidly. The interim profit figure was an impressive R19 million, more than double the R8.6 million reported in the interim period last year.
In the interim periods the LPM slots operations generated R194.4 million in gross gaming revenue - which was 25% or almost R40 million ahead of the same period in 2010.
It seems Grandslots Western Cape was the star performer, increasing gross gaming revenue by over 15%. This was ahead of the total gross gaming revenue growth of 13.7% recorded in the Western Cape.
GPI chairman Hassen Adams said a total of 1 670 LPMs were operational in Western Cape at the end of 2011 – representing 24.4% of the national total of active LPMs. He said the Western Cape remained the best performing province in terms of LPM gross gaming revenue in the country, and contended that Grandslots remained the market leader in the province in terms of active LPMs and gross gaming revenue. “It enjoyed a gross gaming revenue market share of 56.7% at end December compared to 54.3% in the same period the previous year and an active LPM market share of 53.7%.”
The second encouraging gaming development involves listed financial services specialist Purple Capital, which has backed a Cape Town based sports betting outfit called Voltbet.
Purple Capital chairman Mark Barnes has already spoken enthusiastically of Voltbet’s prospects. He noted at the release of Purple Capital’s half-year to end February results: “We will continue to invest and partner in this business, which we expect will soon be a big multiple of its current size and reach. Voltbet’s installed base will, in due course, yield plentiful cash flows.”
Voltbet managed a 134% jump in revenue to R40 million in the half-year to end February with gross gaming revenue up 60% to R1.6 million.
Despite its Cape roots Voltbet also recently managed to snag a partnership with the Blue Bulls rugby franchise – an arrangement that will hopefully see the company boosting punter numbers through in-stadium entertainment.
Rumour is that Voltbet is talking to another major rugby franchise. Anyone want to bet it’s the Stormers/Western Province?
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