Gold Reef adjusted earnings up 17%

Johannesburg - Gold Reef Resorts (GDF), which is to be renamed Tsogo Sun Holdings, reported a 17% increase in adjusted headline earnings to R1bn for the year ended March 2011.

This translated into basic and diluted headline earnings per share of 110.2 cents verus 96.3c for the previous year - an increase of 4%.

Gold Reef said the past financial year had seen growth in revenue across most of the group's casinos, albeit at low levels, with trading in the last quarter of the financial year reflecting stronger growth in casino win, particularly in Gauteng and KwaZulu-Natal.

"Southern Sun Hotels benefited from the 2010 Fifa World Cup in June and July 2010, although the benefit was diluted as a result of the substantial disruption to normal trading patterns in the time periods both during and adjacent to the tournament," it said.

Total income of R6.5bn was 12% above the previous period, assisted by the inclusion of R195m income from Gold Reef in March 2011 and the opening of the Southern Sun Montecasino Hotel, parking and Pivot office development in April 2010, which contributed R75m in income.

"The trading environment for gaming and hotels continues to be subdued; however, the group remains highly cash generative. The merger with Gold Reef has seen Tsogo emerge as the largest gaming and hotel group in South Africa and the group remains focused on growth," it said.

The group declared a final cash dividend of 50c/share in respect of the company's year-end.

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