SunWest International holds 100% of GrandWest Casino and Entertainment World and 100% of The Table Bay Hotel.
GrandWest Casino and Entertainment World is the largest entertainment destination of its kind in South Africa. It has the only casino in Cape Town, and a range of family-friendly entertainment offerings from iceskating to movies and arcade games – all under one roof. GrandWest also offers premium conferencing and event facilities in Cape Town and has hosted some of the biggest local and international entertainment acts in the 7 000-seat Arena.
The Table Bay Hotel is a five-star luxury hotel situated in the Victoria & Alfred Waterfront in Cape Town and is one of the Leading Hotels of the World. It has also been voted as one of South Africa’s Top 25 Hotels in the 2014 and 2015 TripAdvisor Travellers’ Choice awards.
effective ownership (as at 30 June 2015)
contribution to GPI headline earnings for the period
Mervyn Naidoo (GrandWest)
Joanne Selby (Table Bay Hotel)
GPI directors at SunWest board level
Hassen Adams, Alan Keet, Nombeko Mlambo
Total employee complement: 1 587
GrandWest: 1 278
Table Bay: 309
Goodwood, Cape Town
- One casino and entertainment complex
- One five-star hotel
Key financial performance indicators (R’000s)
|Revenue||2 404 223||2 250 457||2 051 094|
|EBITDA||943 529||852 073||791 730|
|Net profit after tax||515 326||464 193||440 078|
|Total debt excluding shareholder loans||871 068||848 558||751 072|
Operating context, performance and prospects
Over the past year the South African economy has experienced a downturn and the local consumer has been under significant pressure with rising costs across all consumer goods. In addition, the local tourism market was negatively affected by the introduction of new visa regulations, biometric testing and the outbreak of the Ebola virus in West Africa. All these factors affected the local casino and luxury hotel industries very negatively, with the majority of the large casinos and luxury hotels producing poor results during the past year.
However, against the backdrop of all these negative factors, both GrandWest and the Table Bay Hotel produced strong results, which have highlighted the quality of these assets and their brands. As a result, SunWest increased its revenue by 6.8% to R2 404.2 million, its EBITDA by 10.7% to R943.5 million and its net profit after tax by 11.1% to R515.3 million. This allowed SunWest to increase its dividends paid by 15.6% to R520.0 million during the year.
GrandWest’s revenue increased by 4.4% to R2 253.0 million (2014: R2 157.7 million) year-on-year, as a result of excellent growth of 10.6% during the first half of the year. However, the growth in the second half of the year slowed to 1.9%, reflecting the higher base in the prior year, a slow-down in the economy and in part impacted by the volatility on tables. EBITDA increased by 3.7% to R915.4 million (2014: R882.7 million) due to good cost control and despite the effective gaming taxes of 27.4% being 0.6% higher than last year. The EBITDA margin increased by 1.3% to 42.5% (2014: 41.2%).
Table Bay Hotel
The Table Bay Hotel increased its revenue by 8.3% to R252.5 million (2014: R233.1 million) year-on-year as a result of a 9.0% increase in the Average Daily Rate and a 14% growth in food and beverage revenue. The decline in visitation from growth markets such as India and China was offset by an increased focus on traditional markets in Europe and the USA, with the weaker rand helping to boost tourism from these regions. Costs were well managed, resulting in a 21.4% increase in EBITDA to R60.2 million (2014: R49.6 million).