Cape Town - Horseracing and betting company Phumelela Gaming & Leisure [JSE:PHM] achieved “solid progress in all business areas” for the six months to January 31 2016, CEO Rian du Plessis said on Friday.
He added that these results were achieved despite a backdrop of low economic growth and continued pressure on consumers and while investing in diversification and international growth. Despite the higher cost of staging thoroughbred horseracing, Phumelela continues to invest in the long-term sustainability of the sport. Investments in complementary activities yielded improving returns, bolstering cash flow and the group financial position.
Phumelela has acquired 51% of Afribet, a retail bookmaker licensed in the Eastern Cape. Suspensive conditions were fulfilled post the half-year end. In addition, the group has agreed to the purchase – subject to conditions – of 50% of the equity in Supabets.