Due to Covid-19’s Pandemic effect on results, Sun International predicts a full-year loss, rough times are facing the firm. The company said in a trading update issued yesterday that it expects to record a headline loss of between 170 cents and 290 cents per share for the year ended December 31, compared to 603 cents a year ago.
Sun International, South Africa’s largest casino operator, saw its revenues almost decrease last year, with the firm losing R1.1 billion (roughly US$75 million).
Sun International, along with other gaming and hospitality companies, was forced to close its doors for just over three months in 2020 during the Pandemic, but it also faces trade restrictions (domestic and international travel bans, liquor bans, curfews, capacity limits due to social distancing rules and so on).
Sun International says “The charge was against the carrying values of certain South African cash-generating units like Sun City, Boardwalk, and Maslow Sandton, as well as certain intangible assets from the South African and Sun Dreams operations as a result of the Covid-19 pandemic and the associated impact on trading conditions,”
“We worked tirelessly to cut costs, improve working capital, prioritize capital spending, and secure payment waivers, reductions, and deferments with lenders, service providers, and suppliers. We devised and adopted strategies to improve operating efficiencies and restructured some aspects of the company,” Confirmed Sun International CEO.