Tsogo Sun expecting higher earnings
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Johannesburg - South African hotel, gaming and entertainment group, Tsogo Sun said on Tuesday it is expecting its earnings per share (Eps) to be between 37 percent and 41 percent higher for the year to end March, up from the 188.3c a share reported in 2016.
The group is also expecting an increase in revenue, by between 7 percent and 9 percent. The revenue is expecting climb by between R860 million and R1.11 billion, up from R12.28 billion reported a year earlier.
Earnings before interest, tax, depreciation and amortisation (Ebitda) is expected to be between 10 percent and 12 percent higher, while headline earnings per share (Heps) is expected to be between 12 percent and 14 percent higher, up by between 22.6c and 26.3c compared to the prior comparative period of 188.1c a share.
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The group says revenue and Ebitda results has been assisted by a 28 percent and 48 percent increase in Hotels SA performance, respectively, following Tsogo Sun’s acquisition of a controlling interest in Hospitality Property Fund and a number of additional hotel investments.
The group’s Ebitda margin has improved to 38.2 percent from 37 percent in the prior comparative period which reflects the effectiveness of cost control initiatives implemented during this protracted period of muted economic growth. The group expects to release the results on or about May 24.
BUSINESS REPORT ONLINE