SA’s second-biggest gaming group, Peermont Global,
said yesterday its revenue for the six months to June
this year had increased 26% to R560,8m.
The group’s headline earnings a share grew 52% to 34,3c,
and adjusted headline earnings a share — excluding a
once-off option gain — rose 18% to 26,5c.
Peermont CEO Ernie Joubert said yesterday the
acquisition of Las Vegas-based Caesars Entertainment’s
stake in its Caesars Gauteng casino earlier this year
for $145m had boosted revenue. The casino has been
renamed Emperors Palace and Peermont has an effective
82,9% interest.
Joubert said the sustained strong consumer environment
helped propel revenue further. Nedcor Securities analyst
Sean Ashton said the results were in line with
expectations.
“One disappointment is that the group added gaming
facilities to Emperors Palace yet still underperformed
(in) the Gauteng gaming market,” he said.
Emperors Palace’s gaming revenue came in 10% higher than
last year, compared with a 14% improvement in Gauteng.
One risk to the Peermont share, as highlighted by
analysts, is its overexposure to the Gauteng gaming
market, the biggest in SA.
Ashton said: “If growth slows in the Gauteng market, it
(Peermont) will certainly be more affected than Sun
International.”
Joubert said that following the purchase of its
increased stake in Emperors Palace the company had
become even more Gauteng-concentrated.
He said the group had started building up its hotel
portfolio. “The problem in SA is that the major casino
licences have been awarded already,” he said.
There are six casino licences to be awarded in SA, and
Joubert said the group would look into them. He said it
would look into international and small acquisitive
opportunities in Africa. It is investigating
possibilities in Botswana and Mozambique.
Peermont, along with other global gambling groups, has
been shortlisted to run a casino complex in Singapore.
The group said it would carefully evaluate the contents
of the request for proposal document and would assess
the costs and benefits of participation.
“We (Peermont) do not foresee spending on the project
until the licence is conferred,” Joubert said. It spent
R3,9m on participation in the Singapore request for
concepts process in the six months.
The Singapore government has announced that gaming
concessions would be awarded for two Integrated Resort
projects: on the Marina Bayfront and on Sentosa Island.
The document is expected to be issued by the end of
September this year.
Joubert, on longer-term prospects, said the group would
be looking for further growth opportunities in southern
Africa, and would continue to investigate off-shore
opportunities.
In the second half of the year, he said, the sustained
strong consumer environment would equal solid results
for the year.
Peermont recorded an interim dividend of 14,6c, compared
with 11,4c previously.
Ron Derby
Media Correspondent
