Highlights include:

  • Concluded agreement with Sun International to restructure certain common assets
  • Increase in revenue of 33%
  • Increase in LPM Gross Gaming Revenue of 25%
  • Increase in Net profit after tax by 1 206%
  • Increase in HEPS of 82%, which resulted in an increase in adjusted HEPS of 30%
  • Cash generated of R335.9 million
  • Special dividend of 60 cents per share paid during January 2012 from the proceeds of the Sun International deal
  • Final ordinary dividend of 12.5 cents per share and a special dividend of 7.5 cents per share  totalling 20 cents per share declared, representing a 100% increase

(Cape Town, 28 August 2012) Grand Parade Investments (GPI), a major player in the South African tourism, leisure and gaming industry, has reported a 33% increase in revenues to R435,7 million for the year ended 30 June 2012.

Headline earning per share (HEPS) increased by 82% while adjusted HEPS increased by 30% to 29.09 cents per share.  The increase primarily arises from the returns on available cash, the decreased finance charges due to lower debt levels as well as the improved performance of its LPM operations.

“GPI’s results are pleasing, we had a successful year and continue to show solid growth,” says Alan Keet, CEO of GPI.

The board declared a final dividend of 20 cents per share, representing a 100% increase and paid a special dividend of 60 cents per share earlier in the year.

The effects of the restructuring transaction with Sun International in December 2011 were removed from the adjusted HEPS to normalise earnings.  In terms of the Sun International agreement, GPI has reduced its investment stakes in both SunWest (GrandWest Casino and the Table Bay Hotel in Cape Town) and Worcester Casino (Golden Valley Casino in Worcester) to a 25.1% shareholding in each, and disposed of its entire 30.6% interest in Real Africa Holdings.

A review of GPI’s jointly-controlled entities with Sun International show satisfactory increases.

Despite the challenging economic environment in the Western Cape over the last year, GrandWest’s revenue increased by 7.9% and its attributable earnings, after the once-off cancellation fee, increased by 5.9%.  GrandWest’s EBITDA margin recovered by 19.8% to R751.7 million.

The Table Bay Hotel achieved a 4% decrease in revenue while its attributable loss increased by 37.2% due to a 5.3%  in the average room rate from R2060 to R1956 year-on-year and an occupancy rate decrease from 48.1% to 47.5%.

Golden Valley Casino’s revenue increased by 6.7%, while its attributable earnings before the payment of the once-off cancellation fees increased by 158.4%.  After the payment of its cancellation fees, its attributable loss decreased by 66%.

GPI  reported a 25.1% increase in its gaming revenue to R395,6 million.

“It is very encouraging to see the increase in Slots’ gaming revenue, despite a relatively small increase (3.3%) in active LPM’s (Limited Payout Machine Slots) over our three licenses,” says Keet.

In the Western Cape, Grandslots continued to maintain its market dominance.  There are two licensed operators in the province and Grandslots enjoyed a 56.8% market share (2011: 56.4%). Gaming revenue increased by 16.9% to R249.6 million despite a slight decrease of 2.0% in the number of its active LPMs during the period.

In KwaZulu-Natal, Kingdomslots remained the market leader in the province.  With four licensed operators, Kingdomslots enjoyed 41.2% market share (2011: 42.6%).  It showed a significant increase in gaming revenue of 19.3% to R119.3 million on the back of a slight increase of 1.9% in its number of active LPM’s during the period.

In Gauteng, Grand Gaming: Slots, one of five licensed operators, achieved revenue of R26.7 million during its first full year of operations.

“We are pleased to see that Grand Gaming: Slots  increased its overall market share in Gauteng