| |
|
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| Fifth consecutive year that the group has achieved an adjusted headline earnings per share growth rate
in excess of 30%.
|
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| FINANCIAL PERFORMANCE |
|
| |
| Adjusted headline earnings (Rm) |
 The group has once again achieved strong growth in
revenue and earnings as a result of continued growth
in casino revenue and further improvement in margins.
Diluted adjusted headline earnings of 719 cents per share
were 33% ahead of last year resulting in the fifth
consecutive year that the group has achieved an adjusted
headline earnings per share growth rate in excess of 30%.
The income statement has been presented on
the basis of the group's election to disclose items of income
and expenditure by nature in terms of IAS1. However,
management continues to monitor financial performance
by analysing direct and indirect costs and measuring
EBITDA and adjusted headline earnings achievements. This
additional disclosure is provided below. |
|
| |
|
|
2007
Rm |
%
change |
2006
Rm |
|
| Revenue |
|
6 937 |
17 |
5 949 |
|
| Casino |
|
5 359 |
18 |
4 543 |
|
| Slots |
|
4 609 |
20 |
3 848 |
|
| Tables |
|
750 |
8 |
695 |
|
| Rooms |
|
776 |
14 |
681 |
|
| Food and beverage |
|
479 |
4 |
459 |
|
| Other |
|
323 |
21 |
266 |
|
| Direct costs |
|
(2 780) |
(12) |
(2 487) |
|
| Casino – Levies and VAT |
|
(1 133) |
(20) |
(948) |
|
| – Other |
|
(907) |
(10) |
(822) |
|
| Rooms |
|
(164) |
(9) |
(150) |
|
| Food and beverage |
|
(378) |
1 |
(381) |
|
| Other |
|
(198) |
(6) |
(186) |
|
|
|
|
|
|
|
| Gross profit |
|
4 157 |
20 |
3 462 |
|
| Indirect costs |
|
(1 596) |
(10) |
(1 447) |
|
| EBITDA |
|
2 561 |
27 |
2 015 |
|
| Depreciation and amortisation |
|
(518) |
(10) |
(473) |
|
| Property and equipment rental |
|
(74) |
(19) |
(62) |
|
| Operating profit |
|
1 969 |
33 |
1 480 |
|
| Foreign exchange (losses)/profits |
|
(8) |
(120) |
41 |
|
| Interest income |
|
77 |
4 |
74 |
|
| Interest expense |
|
(288) |
(24) |
(232) |
|
| Profit before taxation |
|
1 750 |
28 |
1 363 |
|
| Taxation |
|
(654) |
(30) |
(502) |
|
| Profit after taxation |
|
1 096 |
27 |
861 |
|
| Minority interests |
|
(282) |
(9) |
(259) |
|
| Adjusted headline earnings |
|
814 |
35 |
602 |
|
| Headline and adjusted headline earnings adjustments |
|
(16) |
(105) |
331 |
|
| Profit attributable to ordinary shareholders |
|
798 |
(14%) |
933 |
|
|
| |
Improved levels of disposable income, the relatively
stable economic environment, the introduction of exciting
products, new casino openings and the refurbishment of
older properties helped the group achieve an 18% growth
in gaming revenue for the third consecutive year.
Rooms revenue of R776 million was 14% ahead of the
previous year. The overall group occupancy of 74% was
3 percentage points ahead of last year and the average
room rate improved 7% to R792 mainly due to good
growth in the international individual
tourism market.
The gross margin at 59,9% was 1,7 percentage points
up on last year. Direct costs excluding gaming levies and
VAT were 7% up on last year, significantly below the 17%
growth in overall revenues. Gaming levies, which were
20% up on last year, continue to grow ahead of the
growth in gaming revenue as a result of fiscal drag.
Indirect costs increases have been contained at 10%
contributing to the group EBITDA margin improvement of
3 percentage points to 37% and an increase of 27% in
EBITDA to R2,6 billion.
Profit before taxation at R1 750 million was 28% ahead of
last year. Depreciation and amortisation charges were
10% up on the previous year while the net interest charge
has increased by R53 million over last year to R211 million
arising primarily from additional funding requirements
following the acquisition of 61,3% of RAH in September
2006 and the purchase of 899 400 shares in the first half
of the year. Foreign exchange losses of R8 million in the
current year and last year's profits of R41 million relate primarily to exchange rate movements on converting
offshore cash balances.
Taxation at R654 million was 30% more than the
previous year. The overall effective tax rate was 37,4%,
0,6 percentage points higher than last year. The nondeductibility
for taxation purposes of certain significant
costs in our business, including casino bid costs,
depreciation on non-hotel buildings, preference share
dividends, plus the STC on significantly increased dividend
payments, result in the effective tax rate remaining above
the statutory tax rate.
Net headline and adjusted headline earnings adjustments
of R16 million include the realisation of fair value gains
on KZL shares of R84 million, pre-opening expenses of
R8 million, the pension fund surplus recognition of
R10 million resulting from the adoption of IFRIC14 and the
impairment of the group's investment in the Cape Town
International Convention Centre (CTICC) of R97 million, as
a result of the CTICC impairing the carrying value of its
buildings. The investment is carried at its impaired value as
its fair value cannot be reliably determined.
Employee Share Trusts have not been consolidated in the
above disclosure on the basis that the group does not
receive any of the economic benefits from the trusts.
Adjusted headline earnings of R814 million were 35% above
the previous year and diluted adjusted headline earnings per
share of 719 cents were 33% ahead of last year.
The board has declared dividends of 400 cents per share,
38% above those of last year. This is in line with the
group's stated intention of increasing the dividend growth
rate above that of the earnings growth rate. |
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| Revenue – 2007 (2006) |
Net assets – 2007 (2006) |
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