Hotel and gaming group Sun International on Wednesday announced an 11% increase in revenue to R2.18 billion in the quarter to the end of March.

Revenue grew 10% to R6.67 billion for the nine months to the end of March, from R6.07 billion in 2010.

Casino revenue for the quarter advanced 11% to R1.7 billion, and 9% to R5.19 billion for the nine-month period.

Rooms achieved revenue of R233 million for the quarter, up 6%, and R697 million for the nine-month period, from R628 million previously.

Sun International's earnings before interest, tax, depreciation and amortisation (ebitda) advanced 7% to R636 million for the quarter ending March, and grew 6% to R1.9 billion over the nine-month period.

"Revenue for the quarter at R2.2 billion was 11% ahead of last year, however comparable revenue, excluding the effects of disrupted trade at Monticello in the prior year and the inclusion of the Federal Palace, was 3% ahead of last year," Sun International said.

Casino revenue was up 11%, primarily as a result of the increased revenue from Monticello. Food, beverage and other revenue was 14% ahead of last year, the group said.

GrandWest, Boardwalk and Sibaya achieved revenue growth of 4%, 3% and 6% respectively, while Carnival City revenue declined 6% during the quarter.

Monticello achieved revenue growth of 9% for the quarter after adjusting for the earthquake disruption, Sun International said.

Sun City revenue was 4% ahead of last year at an occupancy of 64%, three percentage points below last year.

The unit also achieved an average room rate of R1 364, 2% above last year.

The Table Bay achieved an occupancy of 59% (62%) and an average room rate of R2 097(R2 221 ) resulting in a 5% decline in revenue, Sun International said.

The Zambian hotels achieved an aggregate occupancy of 43% (45%) and average room rate of $198.

The group's overall occupancy for the quarter of 65% was one percentage point below last year, it said.

Phase two of the Wild Coast Sun refurbishment project was completed in December 2010, taking the total complement of newly refurbished rooms to 111.

"Phase three is now underway, which consists of the refurbishment of a further 182 bedrooms and the convention centre, and the construction of the new waterpark.

The total estimated capital expenditure remains at 400 million rand with final completion scheduled for mid-2012," the group said.

It noted that the expansion of Boardwalk commenced in February.

The project included a five-star hotel and conference centre, expanded gaming facilities and a new parkade at an estimated cost of R1 billion.

The project was scheduled for completion in December 2012.

For Kalahari Sands, the group said that refurbishment of 173 hotel rooms, buffet restaurant and kitchen was progressing well and should be completed by October at a projected cost of 85 million rand.

Sun International said that no announcements had been made by the provincial government of the Western Cape on the exclusivity of the Western Cape casino licences and accordingly there remained insufficient information available to assess the possible impacts on its GrandWest business.

Looking ahead, Sun International said that hospitality revenues continued to be subdued and were expected to remain so for the balance of the year.

"Gaming revenues are showing signs of improvement at most units. Monticello and the Federal Palace continue to increase their contributions to the group."

Source: I-Net Bridge