Tsogo Sun Gaming readies earnings report following hotel unbundling

(File: Shutterstock)
(File: Shutterstock)
Shutterstock [http://www.shutterstock.com]

Tsogo Sun Gaming says it expects to announce a rise in income of between 4% and 6% when it publishes its earnings report for the half-year ended September 30 later in the month.

Earnings before interest, income tax, depreciation, amortisation, property rentals, long term incentives and exceptional items, or EBITDAR, meanwhile, are expected to rise by between 3% and 5%. 

In an update to shareholders on Wednesday, the casino and entertainment group warned that there would be a large divergence between its published earnings per share and headline earnings per share, two measures it uses to track its financial performance.

Earnings per share are expected to be 60% and 66% higher than the six-months to end September 2018, as they will include proceeds from the unbundling of the group's hotel business.  


Headline earnings per share, meanwhile, are expected to fall by between 11% and 15% from teh prevoius comparable period, as proceeds from the unbundling of the hotels business will not be included. Tsogo Sun Gaming says HEPS is also expected to decline due to additional interest cost on increased debt taken on in the unbundling of Tsogo Sun Hotels Limited.

The group's hotel division was unbundled from its casino and entertainment division earlier in the year. The two companies are listed separately on the JSE.

- Compiled by Jan Cronje 

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