Gaming and resort company reports 32% ris in revenue before delisting
Peermont ends its public status as a winner
March 20, 2007
By AUDREY D’ANGELO
Cape Town - Gaming and resort company Peermont Global - soon to be delisted when a R7 billion buyout by Newco consortium, led by the Mineworkers Investment Company (MIC), is completed - is ending its existence as a public company on a high note.
In its results for the year to December, revenue rose by 32 percent to R1.6 billion and fully diluted earnings a share by 25.1 percent to 83.2c. Adjusted headline earnings a share increased 38.7 percent to 81.5c and operating profit 37.8 percent to R553.9 million.
But the final dividend is 11.7 percent lower at 28.6c a share, with operating costs on a larger operation 29.4 percent higher at R1 billion.
Profit before tax was 24.9 percent higher at R432.3 million, but the tax bill increased by 20.8 percent to R143.3 million. Value-added tax and gaming levies rose to R255.6 million from R191.8 million.
Revenue from gaming rose to R1.3 billion (R985.7 million), revenue from rooms to R125 million (R92.6 million), and revenue from food and beverage sales rose to R138.8 million (R119.1 million).
The company's managing director, Ernie Joubert, said the rise in revenue from rooms was partly because of the opening of additional accommodation facilities, including the Mondior Concorde Hotel at the Emperor's Palace, which contributed R16.6 million to revenue since its opening in March last year.
"Revenue from the new hotel is expected to grow as occupancies increase," said Joubert.
Operating profit at the Emperor's Palace increased by 23.3 percent to R506.2 million.
Joubert said the directors were "delighted with this strong set of results, including the full effects of a further 20.7 percent interest in Emperor's Palace acquired in April 2005. The casinos bought from Tusk had contributed four months of results and their performance was ahead of our initial expectations."
The business as a whole was on a sound footing to enter the next phase of its growth cycle, he said.
Peermont Global yesterday lost 0.69 percent to R12.90. The leisure and travel sector added 0.16 percent.
Joubert opts to sell shares and quit
Cape Town - Ernie Joubert, the outgoing managing director of Peermont Global who, unlike the rest of top management, has chosen to sell his shares and leave the company when its sale to a consortium headed by the Mineworkers Investment Company is completed, is preparing to emigrate to Spain.
He plans to start a new gaming and resort company, operating in Spain and eastern Europe, but possibly extending later to Africa, apart from South Africa. He is barred from competing with Peermont in this country by a restraint of trade agreement.
He hoped his new company would attract some of the shareholders who had supported him while he built Peermont from scratch into a R7 billion firm. - Audrey d'Angelo
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