Times Of Swaziland: SWAZISPA REVENUE DOWN BY 12.2%

SWAZISPA REVENUE DOWN BY 12.2%
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 BY KWANELE DHLADHLA  on 28/08/2018 08:14:00


MBABANE – SwaziSpa Holdings total revenue for the first six months of 2018
were down by 12.2 per cent over the same period in 2017.
Financial results for the six months ended June 30, 2018, which were reviewed
but not audited by PricewaterhouseCoopers (PwC), reflected that total revenue
generated was E87 908 000.
During the first six months of 2017 total revenue stood at E100 072 000. In
audited financials for the year ended December 31, 2017 total revenue was E208
493 000.
Pressure
It was explained that the casino industry in South Africa and Eswatini came
under pressure over the last few years with the introduction of alternate forms
of gambling and the weak local economy, compounded by the opening of a second
casino in Maputo.
It was mentioned that casino revenue made up only 33.5 per cent of the
company’s revenue compared to 35.6 per cent for the previous year. Casino
revenue for 2018 was E29.4 million, a drop from the E35.6 million recorded in
2017.
Compared to the previous year, the hospitality side of the business recorded a
9.3 per cent decline in revenue.
Rooms’ revenue of E26.5 million made up 30.2 per cent of the company’s
revenue for the reporting period, compared to the 36.3 per cent for food,
beverage and other revenues which was E31.9 million from E35.9 million in 2017.
Decreased
It was pointed out that the decline in room revenues and food and beverage
revenues was as a result of decreased outside catering functions and the prior
year’s hosting of Southern African Development Community (SADC) events.
“Despite the lower room nights sold and food covers served, direct costs
increased by 0.7 per cent mainly as a result of the increases in commodity and
fuel prices,” SwaziSpa reported.
Indirect costs of E38.5 million showed a 3.7 per cent saving compared to the E40
million recorded during the previous year, mainly as a result of cost control
measures.
Headline loss per share of 112.7 cents (six months ended 30 June 2017: earnings
per share of 7.3 cents) was achieved.
Expenditure
Capital expenditure amounting to E1.1 million was incurred during the period,
which included refrigerators, vehicles, river pumps, mattresses, dishwashers,
kitchen equipment, televisions and computer equipment.
As at June 30, 2018 the company had bank borrowings of E21.9 million, which was
E6.2 million up on the same period for the previous year.
“Given the high level of borrowings and the difficult trading conditions the
directors are reviewing the company’s funding requirements on an ongoing
basis,” added SwaziSpa.