MAJOR REVENUE DROP AT SUN INTERNATIONAL

MBABANE – The effects of COVID-19 have slashed Eswatini-based Sun International’s casino income by over 40 per cent as compared to the prior year.

This is as per the Sun International group’s audited financial statement for the period ending December 31, 2020. The group has a diverse profile of assets including world class five star hotels, modern and well-located casinos, and some of the world’s premier resorts.  The Royal Swazi Spa Valley Resort, which comprises; the Lugogo Sun and the Royal Swazi Spa hotel are under the group’s umbrella. Trading was impacted by; inter alia, the imposition of curfew hours and the restrictions on the serving of alcohol. The limited capacity resulting from every second machine being switched off caused challenges on busy periods. Operations in the country were halted.

dropped

According to the financial statement, total revenue from contracts with customers of the Eswatini operations dropped from E122 million to only E21 million. Net gaming wins fell from E71 million to a very low E14 million. Casino earnings are from slots, tables and alternate gaming. The group says it remains unclear as to when its operations here in Eswatini will resume. “We continue to actively consider expressions of interest and pursue the disposal of our equity interest in both of these businesses,” said the group.

Meanwhile, the group further reported that in order to mitigate against the impact of the pandemic on the group’s liquidity, they pro-actively engaged with the South African lending group which agreed to suspend Sun International’s debt repayments, waived covenant measures and rescheduled debt. “Certain of the key terms agreed on included capital payments deferred until 30 June 2021; interest and preference dividend payments deferred until March 31, 2021 or 31 December 2020 provided the group had sufficient levels of liquidity. “In this regard, the group serviced the 2020 fourth quarter interest payment,” reported the group.

When it comes to outlook, the Group says the COVID-19 pandemic coupled with the ongoing restrictions imposed on business and its activities in terms of the Disaster Management Act would continue to have a significant impact on the South African economy, which will take some time to recover and which will impact their trading results.

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