Tsogo Sun Gaming to see earnings surge after unbundling

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Tsogo Sun Hotels was unbundled from the Tsogo Sun group and separately listed on the JSE in June

Tsogo Sun Gaming said on Wednesday that an increase in the cost of debt as a result of the unbundling of Tsogo Holding’s hotel interests in June will weigh on headline earnings for the six months to end September.

Headline earnings and basic earnings will diverge widely, with earnings per share expected to rise as much as 66% compared to the prior period, due to the company realising a R564m profit from discontinued operations due to the unbundling. Headline earnings per share are expected to fall by between 11% and 15% from the prior period’s 77.2c, due to additional interest costs on debt taken on in the unbundling of Tsogo Sun.The company, which operates 13 casino’s across SA, expects income to have risen by between 4% and 6% from the prior period’s R5.6bn.

 

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