PDF 25 MB - Sun International | Investor Centre
PDF 25 MB - Sun International | Investor Centre
PDF 25 MB - Sun International | Investor Centre
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TRADING AND GROUP OPERATING PERFORMANCE<br />
The challenging economic environment experienced in the past few years<br />
continued in the year under review. Despite this and the significant capital<br />
expenditure incurred on Monticello and the cost of the group’s investment<br />
in Nigeria, the group’s debt to EBITDA increased only marginally from 2.3<br />
to 2.4 times. The focus over the past year has been on costs and capital<br />
expenditure containment, our financial position, managing the group’s<br />
liquidity, debt levels and gearing capacity.<br />
JOINT REPORT OF THE CHIEF EXECUTIVE AND CHIEF FINANCIAL OFFICER continued<br />
1. SHAREHOLDER DELIVERY<br />
The statements of comprehensive income on page 152 have been presented<br />
on the basis of the group’s decision to disclose items of income and<br />
expenditure by nature in terms of IAS 1. However, management continues<br />
to monitor financial performance by analysing direct and indirect costs and<br />
measuring EBITDA and adjusted headline earnings achievements. This<br />
additional disclosure is provided below.<br />
R million 2010 % 2009<br />
Revenue<br />
7 961 (1) 8 041<br />
Casino 6 212 – 6 234<br />
Slots 5 235 (1) 5 276<br />
Tables 977 2 958<br />
Rooms 857 (5) 900<br />
Food and beverage 550 – 550<br />
Other 342 (4) 357<br />
Direct costs (3 521) (4) (3 399)<br />
Casino – Levies and VAT (1 364) (1) (1 353)<br />
– Other (1 210) (5) (1 149)<br />
Rooms (204) (2) (200)<br />
Food and beverage (475) (1) (472)<br />
Other (268) (19) (2<strong>25</strong>)<br />
Gross profit 4 440 (4) 4 642<br />
Indirect costs and other (1 895) – (1 896)<br />
Administration and general (903) – (903)<br />
Marketing (411) – (413)<br />
Property costs (641) (12) (574)<br />
Other 9 >200 (6)<br />
Net Monticello business interruption 51 – –<br />
Monticello business interruption costs (124) – –<br />
Monticello business interruption claim 175 – –<br />
EBITDA 2 545 (7) 2 746<br />
Depreciation and amortisation (685) (4) (658)<br />
Property and equipment rental (114) (54) (74)<br />
Operating profit 1 746 (13) 2 014<br />
Foreign exchange (loss)/gain (14) (141) 34<br />
Interest income 60 (35) 93<br />
Interest expense (542) 21 (685)<br />
Profit before tax 1 <strong>25</strong>0 (14) 1 456<br />
Tax (518) 16 (619)<br />
Profit after tax 732 (13) 837<br />
Share of associate’s loss (3) – –<br />
Minorities’ interests (217) 8 (237)<br />
Adjusted headline earnings 512 (15) 600<br />
Headline and adjusted headline earnings adjustments 1 – (99)<br />
Profit attributable to ordinary shareholders 513 2 501<br />
21
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