The Covid-19 pandemic has had a significant impact on Sun International’ results for the six months ended 30 June 2020.
Sun International is shutting down the Carousel Casino in the north of Pretoria that was world famous in the late 90s for its boxing matches headlined by the likes of Brian Mitchell and Dingaan Thobela.
As a result of the crippling impact of Covid-19 pandemic on tourism, the company is shutting down the operation along with Naledi Casino in the Free State and starting a retrenchment process that may affect as many as 2 300 employees.
The retrenchments will mainly impact operations at its flagship asset Sun City, as well as the Maslow in Sandton, the Boardwalk in Port Elizabeth, Table Bay Hotel in Cape Town and the Wild Coast.
The company on Monday said it wants to reduce payroll costs by up to a 60% after its resorts and casino operations were forced into lockdown from late March to end-June.
The company is also exiting its investment in casino operator Sun Dreams in Chile. The disposal will realise $160 million with the proceeds to be used to settle the group’s debt in Chile and South Africa.
Over the six month period to end-June, Sun International’s income declined by 56% from R8.5 billion to R3.7 billion, and EBITDA reduced by 96% from R2.1 billion to R79 million. It is deferring all capital investment other than critical spend, reducing operating costs and negotiating with service providers and suppliers.