Sun International reported a 9% increase in revenue

Revenue for the period was 9% up to R4.5 billion (US$ 0.64 billion), and comparable revenue (excluding the Federal Palace in Nigeria) was 8% higher.

EBITDA of R1.3 billion for the six months was 5% higher than last year with the margin declining 1.2 % points to 28.3%. The lower margin is due to certain cost increases being ahead of inflation (particularly wages and property costs such as rates, taxes and utilities).

Adjusted headline earnings of R220 million (US$ 31 million) and diluted adjusted headline earnings per share of 215 cents are 2% and 1% above last year respectively. Excluding the impact of foreign exchange movements, adjusted headline earnings increased by 13% on last year.

The results include a charge of R75 million (US$ 10 million) in terms of IFRS 2, Share Based Payments, which results from an extension to an option previously granted to the minority shareholders to subscribe for their portion of the additional capital contributed to SFI Resorts SA (Monticello).

Tax of R233 million (US$ 33 million) increased by 27% due to the tax refund in the prior year. The effective tax rate, excluding the minority equity option charge, non-deductible preference share dividends, STC, CGT and prior year over-provisions was 34% (2009: 35%).

Sun International CEO David Coutts-Trotter said that trading conditions in the group's casinos had generally stabilized and that demand for gaming had improved in certain locations lifting gaming revenues by 8% to R3.5 billion (US$ 0.5 million), with slots revenue at R2.9 billion (US$ 0.41 billion) and tables revenue at R0.6 billion, (US$ 0.09 million) 9% and 6% ahead of last year respectively.