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.
Read also: A R3.3bn offer for Tsogo assets
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.