Chronicle Editor
Business Reporter
HOTEL group African Sun Limited has reported a 29 percent growth in revenue to $27 million for the half year period ended 30 June 2018 with profit also spiking to $3,1million from $0,19 million in the same period last year.
Operating profit was $3,9 million up from $0,51 million reported last year driven by improved revenue and cost efficiencies. During the period domestic and foreign revenue growth stood at 26 percent and 32 percent respectively.
The group further indicated that the 33 percent drop in finance costs from $0.49 million to $0,33 million was a result of loan repayments and lower average borrowing rates.
In a commentary attached to its financial statement for the period, issued Tuesday, the group attributed improved performance to growth in international arrivals from key source markets, particularly Europe, Asia and the United States of America.
“Occupancy growth was driven by a strong performance from all our markets, with room nights sold for domestic, international and regional increasing by 16 percent, 26 percent, and 22 percent respectively.
“As a result, revenue per available room increased by 33 percent to $53 from $40 achieved last year,” said the group.
Given global tourism resurgence, African Sun said, its operations benefitted from the remarkable increase in volumes across hotels in the country.
The recent election activity, conferencing and corporate related business dominated the period and pushed hotel occupancy by 10 percent to 55 percent. The positive change was achieved despite the constrained macro-economic environment emanating from unresolved liquidity and foreign currency shortages.
African Sun has expressed optimism the remaining half of 2018 is likely to yield further improvement as the country moves towards the festive season, normally a peak period for tourism activity. In view of improved performance the group declared an interim dividend of $500, 689, which represents a payment of 0,0581 cents per share for the period.
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