Organic growth

Both hotels and gaming have high levels of operational gearing due to substantial levels of fixed operating costs. The major driver of long-term organic growth will arise from maximising the revenue generated from the group’s asset base in all macro-economic circumstances.

Operational overheads must be reviewed and measured for efficiency and to ensure each Rand spent is either in support of the objective of sustainability or growth.

Capital expenditure is an important component of both maintaining and improving the group’s facilities and thereby ensuring revenue sustainability and growth.

Key performance indicators

  2014   2013  
Organic income growth   6%   8%  
Organic Ebitdar growth   6%   9%  
Free cash flow   R1.8 billion   R1.9 billion  
Maintenance capital expenditure   R769 million   R579 million  
Adjusted HEPS growth   18%   24%  


2014 performance

Segmental operating performance

  Income   Ebitdar   Ebitdar margin
  2014   2013     2014   2013     2014   2013  
Year ended 31 March   Rm   Rm     Rm   Rm     %   %  
Montecasino   2 415   2 266     1 088   1 026     45.1   45.3  
Suncoast   1 517   1 440     717   692     47.2   48.1  
Gold Reef City   1 298   1 218     514   479     39.6   39.3  
Silverstar   648   602     263   237     40.6   39.4  
The Ridge   400   387     186   187     46.5   48.3  
Hemingways   336   303     138   125     41.1   41.3  
Emnotweni   328   319     144   147     44.0   46.1  
Golden Horse   318   303     146   150     46.1   49.5  
Garden Route   179   173     78   76     43.7   43.9  
Goldfields   142   136     57   60     40.3   44.1  
Blackrock   139   135     54   53     38.8   39.3  
The Caledon   135   128     35   32     25.7   25.0  
Mykonos   132   134     57   59     43.1   44.0  
Other gaming operations   123   104     (196)  (185)       
Total gaming operations   8 110   7 648     3 281   3 138     40.5   41.0  
South African hotels division(1)(2)   2 153   1 937     737   613     34.2   31.6  
Offshore hotels division   550   361     186   130     33.8   36.0  
Pre-foreign exchange gains         153   93     27.8   25.8  
Foreign exchange gains         33   37        
Corporate   (46)  (36)    10   5        
Group   10 767   9 910     4 214   3 886     39.1   39.2  

All casino units are reported pre-internal gaming management fees
(1) Includes R48 million (2013: R39 million) intergroup management fees
(2) Restated for R2 million changes in accounting policies – refer to note 2 of the summarised consolidated financial statements

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