AN INCREASE in VAT
from 14% to 15% cost
the Sun International
group R44m before tax.
VAT cannot be imposed
on consumers’ gambling
spend, but gaming
companies must pay
VAT on earnings from
gambling.
The group cited
pressure on consumers
in the current economic
climate as a contributor
to restrained growth.
Anthony Leeming, ceo
of Sun International,
also blamed immigration
regulations and limited
air access from markets
like China and India for
putting pressure on the
group’s profits.
The group reported a
profit of R967m after
tax for the year ended
December 2018, a
2% drop on R989m
the previous year.
Group adjusted EBITDA
increased 5% to R4,4bn
and income increased
by 7% to R16,4bn.
Income at Sun City
dropped 3% as the
property continued
to underperform. The
group put this down
to the opening of a
third Electronic Bingo
Terminal outlet in
Rustenburg and a drop
in occupancies (caused
in part by a severe
hailstorm that resulted
in the temporary closure
of some rooms).
The group reduced the
value of the property by
R306m to R2bn.
