Tsogo Sun Gaming

 

Footprint


    Ownership
%
      as at 31 March 2016       Group revenue
contribution %
  Group Ebitdar
contribution %
 
          Tables   Slots   Hotel rooms          
  Montecasino 100       79   1 873   619       22   26  
  Suncoast 100       64   1 600   165       14   17  
  Gold Reef City 100       51   1 728   113       11   12  
  Silverstar 100       29   1 090   34       6   6  
  The Ridge 100       18   450   175       3   4  
  Emnotweni 100       18   425   224       3   3  
  Golden Horse 100       22   450   96       3   4  
  Hemingways 65       16   507   108       3   3  
  Garden Route 100       16   412   43       2   2  
  Blackrock 98       10   300   80       1   1  
  The Caledon 100       8   318   95       1   1  
  Mykonos 70       6   320         1   1  
  Goldfields 100       9   250         1   1  
  Queens 25       6   180         *   *  
  Other gaming operations 100                       1   (5)  
  Total F'16         352   9 903   1 752       72   76  
  Total F'15         347   9 791   1 752       73   78  
Notes: * Queens Casino is equity accounted
    Ebitdar is stated pre-management fees
    Other gaming operations consist of the Sandton Convention Centre and head office costs

Key features

The group's preference is to wholly own its operations thus creating a clearer, simpler operating structure. Empowerment shareholding is achieved at the holding company level, enabling the group empowerment shareholders to participate in all casino operations. Exceptions arise from historical structures and, in the Eastern Cape, where the gaming legislation requires local provincial-based empowerment ownership. Ten of the 14 gaming operations of the group are wholly owned with minority shareholders in Hemingways (35%), Blackrock (2%) and Mykonos (30%), and with Queens Casino being an associate investment of 25%. The Queens Casino licence expires in December 2017 and the group will not participate in the rebid.

The gaming and entertainment complexes are primarily located in urban areas and are the entertainment hubs for the communities they serve. The businesses are thus embedded within the local communities and their success is inextricably linked to the economic wellbeing of that community.

Along with the creation of local jobs and the payment of taxes, we seek to stimulate local enterprise and support economic development, collaborate with provincial and national government and others on shared challenges – all essential to our ongoing ability to trade.

Significant focus is placed on the nature and quality of the facilities and experiences offered at each gaming and entertainment complex. With the vast majority of customers being locally based regular customers, an important component of our operating model is to ensure the properties remain fresh, attractive and interesting to visitors on an ongoing basis.

Management of mutually beneficial relationships with quality restaurant, retail and entertainment tenants is key to retaining footfall at our properties against other leisure offerings.

The customer rewards programme in the gaming division rewards customers with status, benefits and recognition. The rewards programme is important as 75% of gaming revenue is contributed by active reward club members.

Compliance with gaming regulations is critical to the retention of the casino licences and is discussed in the regulatory compliance section on page 52.

Brands


Business model - Brands