Hotels and casino operator Tsogo Sun Holdings reported a 36 percent rise in first-half profit, as consumers in its mainstay South African market spent more on leisure. Tsogo Sun, 40 percent owned by brewer SABMiller, said diluted headline earnings a share totalled 68c in the six months to September compared with 50.1c a year earlier. Headline earnings a share strip out certain one-time items. Shares in the R28 billion company jumped 5.39 percent to R25.24 by 9.17am yesterday, but pared gains to close just 2.05 percent higher at R24.44. Consumer spending in the economy has been on the mend, although some analysts have warned that spending is partly fuelled by a surge in unsecured loans such as credit cards. South African hotels are also struggling with low occupancy rates due to oversupply after a building boom in the run-up to the 2010 Soccer World Cup.
Source: Business Day – Reuters