Tsogo Sun said on Wednesday, November 21, 2018, that its half-year profit was unchanged as pressure on consumers and dilution from recent gaming acquisitions weighed on performance.
The South African hotel and casino group reported adjusted headline earnings per share of 78.8 cents for the six months to September 30, flat from the same period a year earlier. It linked the result to the acquisition of Vukani Slots and Galaxy Bingo, which affected earnings per share.
The company said trading was likely to stay under strain because of weak economic conditions in South Africa and in the commodity-dependent markets where it operates. Tsogo Sun runs hotel brands that include Southern Sun, Garden Court and Holiday Inn.
Chief executive Jacques Booysen said the group was operating in a “low organic growth environment” marked by subdued consumer confidence, and added that cost control remained a major focus.
Tsogo Sun said its operations extend across Nigeria, Kenya, Tanzania, Zambia, Mozambique, the United Arab Emirates and the Seychelles.
The company declared an interim dividend of 132 cents per share, up from 32 cents in the year-ago period, and said it would review its dividend policy based on cash generation.
