GAMBLING: GrandWest Runs Into Trouble
Recent Western Cape Business News
Leading leisure group Sun International has reported a 6% increase in revenue but a 3% drop in EBITDA for the year ended 30 June 2009 and Cape Town's Grandwest too suffered.
Group revenue at R8.04-billion was 6% up on the previous year, with a 3 percentage point drop in the EBITDA margin to 34.2% following subdued revenue growth and operating cost inflation.
Key properties GrandWest and Boardwalk continued to experience challenging trading conditions in their local markets, although cost containments reduced the impacts on margins. GrandWest’s revenue at R1 642 million and EBITDA at R675 million were 7% and 8% below last year respectively with the EBITDA margin declining marginally by 0.7 percentage points to 41.1%. Boardwalk experienced a decline in revenues and EBITDA of 7% to R418 million and R172 million respectively, resulting in an unchanged EBITDA margin of 41.1%.
The Table Bay hotel achieved occupancy of 67% (74%), with an average room rate of R1 930, an 11% improvement on last year. EBITDA declined by 6% to R65 million due primarily to higher operating costs that were significantly impacted by higher property taxes.
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