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The Covid-19 pandemic has had a significant impact on Sun International’s results for the six months ended June 30, 2020.
Sun International will close the Carousel Casino in North Pretoria, which was world famous in the late 1990s for its boxing matches led by the likes of Brian Mitchell and Dingaan Thobela.
As a result of the devastating impact of the Covid-19 pandemic on tourism, the company is closing the operation together with Naledi Casino in the Free State and starting a process of downsizing that can affect up to 2,300 employees.
The reductions will primarily affect operations at its flagship Sun City asset, as well as Maslow in Sandton, Boardwalk in Port Elizabeth, Table Bay Hotel in Cape Town and the Wild Coast.
The company said Monday it wants to cut payroll costs by as much as 60% after its resorts and casino operations were forced to close from late March to late June.
The company is also abandoning its investment in casino operator Sun Dreams in Chile. The sale will materialize in $ 160 million with the proceeds that will be used to settle the group’s debt in Chile and South Africa.
During the six-month period to the end of June, Sun International’s revenue decreased 56% from R8.5 billion to R3.7 billion, and EBITDA decreased by 96% from R2.1 billion to R79. millions. You are deferring all capital investment other than critical spending, reducing operating costs, and negotiating with service providers and vendors.
