Chile – Smoking decks help Sun’s Monticello shineBy Phil - 28 August 2014
As it begins to recover from the effects of the smoking ban, South Africa-based operator Sun International has seen GGR grow as its Monticello Casino in Chile.
Sun International, which now owns 98.9 per cent of Monticello, opened four new smoking decks in September and October, resulting in revenue growth of ten per cent for the second half of the year. The smoking ban was introduced in Chile in March 2013 with GGR at Monticello plummeting by 22 per cent for the half year.
A spokesperson at Sun said: “The recovery in revenues in recent months and a comprehensive restructure of the business resulted in EBITDA (earnings before interest, taxes, depreciation and amortisation) in the second half of the year increasing by 56 per cent to 9.5bn Chilean pesos on last year at an EBITDA margin of 24.8 per cent, which creates a positive outlook for the year ahead.”
In total the group generated revenues of 10.8bn Rand for the second half of the year, representing an increase of 5.4 per cent.
In South Africa, Sun International’s Grand West Casino’s revenue increased by eight per cent to 2bn rand while Sun City’s revenue was up nine per cent at 1.4bn rand.
Sibaya Casino’s revenue grew by five per cent to 1bn rand while Carnival City’s revenue dropped by two per cent to 1bn rand due to competition from Electric Bingo Terminals and Limited Payout Machines.
The group said its strong performance during the second half of the 2014 period was boosted by cost cutting exercises as well as the performance of Monticello both of which should continue to drive profits in the new financial year.
“On balance, the group is confident that it will achieve growth in both EBITDA and adjusted headline earnings in the 2015 financial year,” it stated.