Tsogo Sun defies COVID-19, unrest impacts
by TINTSWALO BALOYI
JOHANNESBURG – TSOGO Sun Hotels have overcome the coronavirus third wave and civil unrest in South Africa to post impressive sets of results for the half-year ended September 30.
Revenue is expected to be between R895 million (US$57,622 million) and R1,025 billion.
This is between R560 million and R690 million higher than revenue of R335 million in the prior comparative period.
Earnings before interest, taxes, depreciation, amortization and restructuring or rent costs (EBITDAR) is expected to be a profit of between R130 million and R160 million.
This is between R336 million and R366 million higher than the EBITDAR loss of R206 million in the prior comparative period.
Tsogo Sun noted the six-month period under review was negatively impacted by the severe third wave of COVID-19 infections during June and July.
“General fear among travellers of contracting the highly contagious Delta variant negatively impacted trading in all regions setting the Group’s recovery back significantly,” it stated.
“Simultaneously, violent protests and civil unrest erupted in Gauteng but most materially for the Group, in KwaZulu-Natal which had been the Group’s best performing region throughout the pandemic.”
The company nonetheless suffered no property damage as a result of the protests and expressed gratitude to employees who ensured guests, many of whom could not return home, were comfortable and safe.
Tsogo Sun during the period under review was able to secure rights as the sole accommodation provider for the Castle Lager Lions Series tour to South Africa.
The timing of which was ideal as it offset some of the revenue shortfall in July.
Tsogo Sun is scheduled to release its unaudited financial results on November 24.
– CAJ News