Sun International on Tuesday announced an excellent set of interim financial results, posting a 32% increase in diluted adjusted headline share earnings to 328c for the six months to December, largely off a strong showing from all business units, which boosted revenue growth as well as expenditure control.

The results were in line with analysts' expectations.

The group was also unambiguous on its continued interest in offshore opportunities, including those in Russia's Moscow region, called into question recently after a raft of prohibitive legislation in Russia restricted casino development to four remote corners of that country.

CE David Coutts-Trotter said the group was likely to bid for a casino in Manchester in the UK.

"Good progress on the opportunity in Lagos, Nigeria, has been made at both state and federal levels", and a decision on this investment was likely to be made this calendar year.
Group revenue increased 15% to R3,4 billion, resulting in a 23% increase in earnings before interest, tax, depreciation and amortisation (ebitda) to R1,2 billion.

An interim dividend of 185c a share was declared, a 37% improvement over the previous interim dividend.

Coutts-Trotter said certain of the favourable trading conditions the group had been experiencing should continue into the second half, particularly the strong growth in casino revenues, which were benefiting from increased levels of disposable income, and the fillip being experienced by the group?s hotels and resorts from the good growth in inbound tourism.

"As a result, the group expects similar growth in ebitda from its operations for the full year."

"However, earnings were significantly enhanced in 2006 by an exchange gain of R52 million (47,3c per share), which is not currently expected to recur in 2007.

"Accordingly, growth in adjusted headline earnings per share for the full year is likely to be below that achieved in the first six months of the year," Coutts-Trotter said.

Both gaming revenue and rooms revenue were 16% ahead of last year's figures.

The favourable growth in the international individual tourist market translated to a 2,1% increase in group occupancy to 73%, and a 10% increase in the average room rate to R777.

Coutts-Trotter said the Golden Valley Casino in Worcester, which opened in November, was trading satisfactorily. The 118-room Sibaya Lodge, which opened in October, had been well received in the market.

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