Johannesburg - Phumelela Gaming & Leisure has reported a 54 percent rise in earnings per share in the year to July, it said on Friday.
The company, which owns tote betting outlets in SA and abroad, attributed this to the weak rand and growth in tote betting on sports other than horseracing.
Phumelela’s revenue gained 19 percent to R1.5 billion, while headline earnings per share - a key measure of profitability - came in at 41 percent higher, at 164.51c.
Income from SA was 15 percent higher to R1.2 billion, while international revenue gained 38 percent.
CEO Rian du Plessis says “performance was extremely pleasing. Results were driven by growth in tote betting on sports other than horseracing, rising fixed odds betting volumes and a substantial increase in the contribution by international operations.
“Fixed odds and international pre-tax income combined is 76 percent higher at R233 million, which compares with a pre-tax loss of R104 million from traditional horseracing operations.”
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Phumelela continues to invest in South African thoroughbred horseracing.
Du Plessis notes “horseracing is the foundation of our business…. We are resolute in playing a key role in ensuring South African racing remains top class. A quality racing experience encourages on-course attendance, particularly for high profile race meetings.
“This year we invested a further R51 million on our betting and racing facilities.”
A 51 percent investment in Eastern Cape-focused Afribet became unconditional from February, expanding the retail footprint to 75 fixed odds retail shops, up from 66 in January.
Total capital expenditure in Betting World, Phumelela’s fixed odds subsidiary, amounted to R23 million in 2016. Income increased across the fixed odds retail footprint. Profits more than trebled.
Group costs were controlled,though drought necessitated additional expenditure of R8.6 million on watering at South African racecourses and training facilities.
Rand weakness was beneficial on translation of offshore earnings.
Du Plessis said Phumelela has a strong platform and going forward will derive benefits from acquisitions and targets another year of real growth in earnings per share”
A final gross cash dividend of 70 cents per share was announced, a rise of 17 percent.
IOL