Deliver to our stakeholders
A stable shareholder base is vital to the sustainability of any business. The distraction of constant restructuring and changes in controlling shareholders can be costly to a business in terms of commercial opportunities missed.
The nature of the shareholders of the group is even more important in a highly visible and regulated industry such as gaming. Popular misconceptions about the industry make it a target for attacks through excessive taxation and regulation. While the group spends signiﬁcant money and time on engaging with stakeholders to ensure that the true facts around issues such as problem gaming are presented, the strongest protection for the business is to ensure that a signiﬁcant portion of the economic beneﬁts of ownership ﬂow to community, charitable or socially beneﬁcial organisations.
This can be achieved through meaningful CSI programmes but also through direct and indirect equity ownership and employment.
Key performance indicators
|Value added contribution to black economically empowered businesses, PDIs and government||R7.9 billion||R7.0 billion|
|BBBEE level||Level 2||Level 2|
|CSI outcomes||Tsogo Sun Sports Academy supports 19 500 SA youths and Arts Academy supports 488 learners||Tsogo Sun Sports Academy supports 1 570 SA youths and Arts Academy supports 480 learners|
As mentioned in the group overview here the nature of the HCI shareholding is of particular importance as it provides the bulk of the 55.99% broad-based empowered ownership at group level. HCI and SABMiller have provided the stable shareholder base for a number of years that has allowed the group to grow and take advantage of opportunities.
Tsogo Sun is committed to the upliftment and development of local communities. We are further committed to leveraging our resources, experience and geographic spread within the hospitality and entertainment industry to provide the foundation for initiatives that achieve lasting results in the communities where we are present. Each year we set aside a portion of our profits for social investment and, through our SunCares programme, we are able to deliver effective social initiatives that seek to create shared value with the broader society. SunCares comprises three specific areas of focus, being community development, enterprise development and the natural environment.
During the year ended 31 March 2014, the group’s combined social investment in community development amounted to R54 million. Of this, veriﬁed spend on BBBEE socio-economic development amounted to R51 million which is the equivalent of 2.6% of net proﬁt after tax and represents 1.6% more than the DTI’s target.
While our casinos and hotels provide substantial support towards a wide range of projects and initiatives designed to uplift people in their local communities, Tsogo Sun’s national community development takes place through the Tsogo Sun Sports, Arts and Learning Academies, which collectively reach 35 967 learners who participate in our full-year programmes.
|Tsogo Sun Sports Academy||115||957||19 537||148|
|– Rugby||42||451||1 333||87|
|– Chess (Tsogo Sun Moves for Life)||37||455||16 719||–|
|Tsogo Sun Arts Academy||13||37||488||1|
|Tsogo Sun Learning Academy||224||460||15 942||1 152|
|Total||352||1 454||35 967||1 301|
Tsogo Sun Sports Academy
We share the Department of Education’s vision which is also that of the Department of Sport, being to nurture school environments that promote healthy living and responsible attitudes to foster the development of successful young South Africans. In line with this, the Tsogo Sun Sports Academy uses sport as a medium to deliver life skills, leadership and healthcare training, as well as to reinforce the importance of education to young learners, with the ultimate goal of nurturing children’s wellbeing.
During the period, the Tsogo Sun Sports Academy continued to deliver on previous projects including soccer, rugby and athletics. During 2013, the Tsogo Sun Moves For Life national chess programme was introduced into the foundation phase at schools across South Africa. The programme presently reaches 16 719 learners and 455 educators across 37 schools, with the objective of improving maths, science and literacy skills through the medium of chess.
Our Sports Academy currently supports 1 618 South African children and youth between the ages of 7 and 17 in soccer, rugby and athletics. In addition, training and accreditation is also provided to the coaches, trainers, mentors and referees in these programmes. To achieve this, Tsogo Sun has partnered with relevant local government departments, sporting industry bodies, associated school sports bodies and schools in local communities.
|Tsogo Sun Sports Academy – soccer|
Tsogo Sun Arts Academy
Our Arts Academy develops the artistic talent of learners from underprivileged backgrounds to provide them essential life skills development. The programme supports the educational framework through the provision of extracurricular activities and enables learners to participate in a carefully designed full-year curriculum that uses the arts as a catalyst to give young people in our communities a chance to bring about change in their lives.
Making use of the Teatro at Montecasino and the Gold Reef City Lyric Theatre as platforms to develop and showcase young local talent, the Tsogo Sun Arts Academy supports children from seven schools in Diepsloot, five schools in Mayfair and one school in Nelspruit. A total of 488 learners are being supported by Tsogo Sun’s Montecasino, Gold Reef City and Emnotweni casinos. The programmes offer training in all disciplines within the arts, including theatre, drama, singing, musical instruments, poetry, creative arts and literature.
Tsogo Sun Learning Academy
The Tsogo Sun Learning Academy provides peer-driven leadership programmes, visits to the Apartheid Museum, various types of bursaries and learnerships and venues at our properties for events hosted by schools.
The Olwazini Discovery Science Centre in Pietermaritzburg is Golden Horse Casino’s onsite science and computer centre. The science centre attracts more than 15 000 learners per annum from 200 schools and the computer centre facilitates computer literacy courses for over 1 000 learners and adults per year.
The group contributes R5 million per annum to the upkeep of the Apartheid Museum, which is situated on the greater Gold Reef City precinct. In addition, the group takes an active role on the board and assists with the operation of the museum.