Sun International a bad bet on Monday
A stock likely to suffer when the JSE opens on Monday morning is Sun International‚ when the market reacts to a trading statement it issued at 5pm on Friday.
The hotel and casino operator warned shareholders of a headline loss per share of up to R1.96 for the year to end-December from the prior year’s headline earnings per share (HEPS) of R3.82. It reports full-year results on March 19 .
Reasons Sun International gave for falling into a loss included problems with its new Menlyn Pretoria operations‚ Sun Time Square Casino and The Arena.
The group said Sun Time Square’s revenue for the nine months to end-December was R827m.
“As a result of disappointing trading and a high interest charge‚ Sun Time Square has incurred a significant loss before tax. Due to the size of this loss we have not been able to justify the raising of the full deferred tax asset and consequently there was limited tax relief from the losses‚” Sun International said.
Rand Merchant Investments — whose holdings include JSE-listed insurers Discovery and MMI‚ London-listed Hastings‚ and unlisted OUTsurance — said on March 6 it expected to report on Monday that interim HEPS for the six months to end-December grew by up to 30%.
Fast-moving consumer goods group AVI said on January 23 it expected to report on Monday that “consolidated” (HEPS) for the six months to end-December grew about 7%.
“Group revenue rose 2.3% with the impact of selling price increases taken during the prior financial year partially offset by declines in sales volumes in some key categories‚” AVI said.
Its fishing group‚ I&J‚ recovered from a strike in August 2016‚ but exports suffered from the stronger rand.
Its shoe chain‚ Spitz‚ on the other hand‚ benefited from imports getting cheaper‚ helping it achieve record December profit.
Asian markets were buoyant ahead of the JSE’s opening on Monday. Tokyo’s Nikkei 225 index was up 1.4% and Hong Kong’s Hang Seng index was up 1.5%.
Would you like to comment on this article or view other readers' comments? Register (it’s quick and free) or sign in now.
Please read our Comment Policy before commenting.