Chilean casino shines for Sun

Posted On Friday, 06 November 2009 02:00 Published by Commercial Property News
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A steadily improving revenue stream from Sun International’s new Monticello Casino in Chile has saved the hotel and gaming group from what would have been a torrid quarter to the end of September.

This is a welcome reversal for the group, which until recently was weighed down by the cost of building the Chilean resort. It also offsets the group’s sharply declining fortunes at its other gaming and hotel operations.

Sun International’s revenue for the quarter came in at R1,9bn, 4% ahead of the same quarter last year. However, the group said in an update to the market late on Wednesday that without Monticello’s contribution, overall revenue would have slumped 6%.

The Chilean property doubled earnings before interest, tax, depreciation and amortisation to R16m, compared with R8m in the previous quarter.

Sun International said the strong rand had taken some of the shine off Monticello’s earnings.

Sun International opened the $236m Monticello Casino in October last year as part of the first phase of the resort, south of the capital, Santiago. Last month the retail and entertainment components opened for business while the 155-room hotel will open next month.

The group’s overall gaming revenue was up 6% to R1,536bn but that was largely due to Monticello’s performance.

Without Chile, gaming revenue was 5% below last year, with revenue at Grand West, its flagship casino, down 7%, Carnival City down 15% and Boardwalk slipping 6%.

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Source: Business Day

Publisher: I-Net Bridge
Source: I-Net Bridge

Last modified on Wednesday, 05 June 2013 02:08

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