Africa
Tsogo Sun to Focus on Online Gambling Options
Casino operator Tsogo Sun has urged the South African government to think again on its current attitude towards casinos, keeping them closed in Level 4 of its lockdown. The operator assured the authorities that the industry is equipped to handle the safe reopening of its venues.
The company lost an estimated €21m in revenue as a result of the pandemic, it reports in its 2020 first-quarter results. Chris du Toit, CEO of Tsogo Sun, said that the company was at an advanced stage of moving into online sports betting and online gaming generally was a “natural progression” for the business.
In the full-year results, revenue rose 1% to ZAR11.69bn (€607.8m) of which gaming revenue the majority. Its Galaxy Bingo hall chain saws revenue grows 10% to ZAR856m (€46.5m) and the revenue of LPMs (limited payout machines in street locations) was up 7% to ZAR1.7bn (€91m).
Operating profit fell 67% to ZAR1.0bn (€52m). After financial items, the company fell into a pre-tax loss of ZAR205m (€10.6m).
Chris du Toit said: “The business is ready, with a robust strategy of enhanced hygiene and safety measures to enable a seamless re-opening to our loyal customers.” Once this happens, the operator said it was confident that it could return to profitability rapidly, by reducing cost structure, with a more efficient casino business a particular focus.
Much of this return to growth will be driven by technology, Tsogo Sun continued. Du Toit said it would step up efforts to leverage smartphone penetration to allow for better interactions with customers, as well as through offering its products via these devices.
“We are also in an advanced stage of entering the online betting industry which is a separate segment of the market,” he explained. Furthermore, online casino would then be a “natural progression.”
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