SunInt final results December 2018
Revenue for the year was higher at R16.4 billion (R15.4 billion), whilst operating profit was R2.3 billion (R2.2 billion). Loss attributable to ordinary shareholders of R7 million (loss of R243 million) was recorded. In addition, headline earnings per share came to 213 cps (Headline loss per share of 175cps).
Given the need to reduce the high debt levels, the board has decided not to declare and pay a dividend for the year ended 31 December 2018.
Annual general meeting
Sun International's 35th annual general meeting will be held at the Maslow Hotel, corner of Grayston Drive and Rivonia Road, Sandton, Johannesburg on Tuesday, 14 May 2019 at 09h00 (South African time). Further details of the company's annual general meeting will be contained in Sun International's annual statutory report to be posted to shareholders on or about Friday, 29 March 2019.
We are confident that the positive steps taken by the government to deal with corruption and state-owned entities will have a positive impact on the South African economy. However; we do not anticipate a tangible improvement in the short term. Consequently, we expect continued pressure on disposable income and hence trading to remain subdued. Time Square is expected to gain further market share and grow revenue and adjusted EBITDA. We will continue to focus on improving our operations and guest experience and will take the necessary action on loss-making entities. Trading in Latam and in particular in Chile, is expected to remain positive with Chile's GDP forecast to grow at a rate of 4% during 2019. We expect our new operations in Peru and Argentina to contribute positively in the first half of 2019. However, interest costs in Latam will increase following these acquisitions and the acquisition of the minority interest in Sun Dreams. We will continue exploring further growth opportunities in Latam, including in the online space, where a number of countries are going through the process of regulating this industry. The proceeds from the rights offer will continue to reduce interest costs in South Africa in the first half of 2019, although the number of shares in issue has increased.