SWAZISPA REVENUE DOWN BY 12.2%

MBABANE – SwaziSpa Holdings total revenue for the first six months of 2018 were down by 12.2 per cent over the same period in 2017.

Financial results for the six months ended June 30, 2018, which were reviewed but not audited by PricewaterhouseCoopers (PwC), reflected that total revenue generated was E87 908 000.
During the first six months of 2017 total revenue stood at E100 072 000. In audited financials for the year ended December 31, 2017 total revenue was E208 493 000.

Pressure

It was explained that the casino industry in South Africa and Eswatini came under pressure over the last few years with the introduction of alternate forms of gambling and the weak local economy, compounded by the opening of a second casino in Maputo.
It was mentioned that casino revenue made up only 33.5 per cent of the company’s revenue compared to 35.6 per cent for the previous year. Casino revenue for 2018 was E29.4 million, a drop from the E35.6 million recorded in 2017.  
Compared to the previous year, the hospitality side of the business recorded a 9.3 per cent decline in revenue.

Rooms’ revenue of E26.5 million made up 30.2 per cent of the company’s revenue for the reporting period, compared to the 36.3 per cent for food, beverage and other revenues which was E31.9 million from E35.9 million in 2017.

Decreased

It was pointed out that the decline in room revenues and food and beverage revenues was as a result of decreased outside catering functions and the prior year’s hosting of Southern African Development Community (SADC) events.
“Despite the lower room nights sold and food covers served, direct costs increased by 0.7 per cent mainly as a result of the increases in commodity and fuel prices,” SwaziSpa reported.
Indirect costs of E38.5 million showed a 3.7 per cent saving compared to the E40 million recorded during the previous year, mainly as a result of cost control measures.
Headline loss per share of 112.7 cents (six months ended 30 June 2017: earnings per share of 7.3 cents) was achieved.

Expenditure

Capital expenditure amounting to E1.1 million was incurred during the period, which included refrigerators, vehicles, river pumps, mattresses, dishwashers, kitchen equipment, televisions and computer equipment.
As at June 30, 2018 the company had bank borrowings of E21.9 million, which was E6.2 million up on the same period for the previous year.
“Given the high level of borrowings and the difficult trading conditions the directors are reviewing the company’s funding requirements on an ongoing basis,” added SwaziSpa.

Post your comment

Your name:

Your e-mail address:

Add your comments:

Please enter the code you see in the image:

Image:

Code: