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SOUTH AFRICA’S TSOGO SUN POSTS EARNINGS RISE BUT WARNS ON OUTLOOK

JOHANNESBURG Nov 19 (Reuters) – Tsogo Sun Holdings Ltd , Africa’s biggest hotels and gambling operator reported a 9 percent rise in adjusted headline earnings per share for the six months ended Sept. but warned business was under pressure due to a subdued economy.

The company paid a dividend of 31 cents and said income had risen by 7 percent to 5.9 billion rand.

“We expect trading conditions to remain under pressure due to the ongoing macro-economic conditions and weak consumer sentiment,” Tsogo Sun Chief Executive Office Marcel von Aulock said in a statement.

The company which also operates hotels in several other countries such as Nigeria, Kenya and Mozambique, said revenue from outside South Africa had increased by 34 percent compared to the previous six months.

This was due to the recovery from the impact of the ebola epidemic, the closure of Southern Sun Maputo for refurbishment in the previous period and the weakening of the rand to the U.S. dollar, the company said.

Tsogo Sun said on Wednesday it will sell 10 hotel properties to Hospitality Property Fund in exchange for shares. The deal which will increase Tsogo’s stake in Hospitality to more than 50 percent from 27 percent.

Source: Reuters – Reporting by Peroshni Govender; Editing by Kavita Chandran