Sun International cuts Sun City valuation by R306m after loss

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Sun International cuts Sun City valuation by R306m after loss
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Increased drop hits tables, while opening of a third electronic bingo terminal outlet in Rustenburg keeps slots under pressure in the local market

Sun International has reduced the value of its flagship asset, Sun City, by R306m after that unit slipped into an operating loss in 2018.

Revenue from rooms there declined 1% as occupancies fell, partly because of the severe hailstorm in mid-December 2018, which resulted in the resort temporarily losing a number of rooms.Sun International said group income in 2018 rose 7% to R16.4bn, while attributable profit fell 4% to R464m. However, the group said it only secured one of the five municipal licences it had bid for in that country. On the others, it lost out to a competitor whose bid was “substantially above ours, and at levels which would not generate satisfactory returns for us”.

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