Peermont boosts profit solid year ahead

JOHANNESBURG – South Africa’s second-biggest hotel and casino company Peermont Global boosted first-half headline earnings per share by 52 per cent and forecast solid results for the full year yesterday.

The company said in a statement headline earnings per share, which strip out capital, non-trading and certain extraordinary items, rose 52 per cent to 43,3 cents in the six months to end June. Adjusted headline EPS, stripping out a one-off option gain, rose 18 per cent to 26,5 cents.”With the sustained strong consumer environment we expect to deliver a solid set of results to the full year ending December 2005,” the company said in a statement.Peermont, which runs hotels and casinos in South Africa and Botswana, last month predicted first-half headline EPS would jump 45-55 per cent thanks to stronger revenues and a one-off gain linked to a big acquisition.Chief Financial Officer Anthony Puttergill told Reuters in an interview on Monday the company expected full-year headline earnings to be in line with analyst forecasts of between 60 and 63 cents per share.Revenues in the second half would get a boost after the company bought Las Vegas-based Caesars Entertainment Inc’s stake in its Caesars Gauteng casino earlier this year for US$145 million.It renamed the casino Emperors Palace.Peermont said growth prospects for its existing businesses were good, and said it was actively investigating expansion opportunities mainly in the southern African region.Chief Executive Ernie Joubert told Reuters the company was exploring possibilities in Botswana and Mozambique but declined to give details.It would fund most acquisitions through debt, but said it would consider a share issue if an attractive buying opportunity arose.”We have no immediate plans for an IPO …but absolutely we would consider it if we came across an expansion plan that seemed attractive,” Joubert said.Peermont, which floated almost exactly a year ago, said it would pay an interim dividend of 14,6 cents versus 11,4 cents a year earlier.Turnover in the period rose 26 per cent to 560,8 million rand mainly thanks to stronger gaming revenues amid a consumer spending boom fuelled by low inflation and interest rates.Peermont has been shortlisted alongside global gambling giants to run a massive casino complex in Singapore, but the company said yesterday it would consider the cost and benefits of participation before proceeding to the next phase.Joubert said the company was in talks with a potential local partner and would tread cautiously regarding the bid.”The investment is huge, competition is huge and risks high,” he said.-Nampa-ReutersAdjusted headline EPS, stripping out a one-off option gain, rose 18 per cent to 26,5 cents.”With the sustained strong consumer environment we expect to deliver a solid set of results to the full year ending December 2005,” the company said in a statement.Peermont, which runs hotels and casinos in South Africa and Botswana, last month predicted first-half headline EPS would jump 45-55 per cent thanks to stronger revenues and a one-off gain linked to a big acquisition.Chief Financial Officer Anthony Puttergill told Reuters in an interview on Monday the company expected full-year headline earnings to be in line with analyst forecasts of between 60 and 63 cents per share.Revenues in the second half would get a boost after the company bought Las Vegas-based Caesars Entertainment Inc’s stake in its Caesars Gauteng casino earlier this year for US$145 million.It renamed the casino Emperors Palace.Peermont said growth prospects for its existing businesses were good, and said it was actively investigating expansion opportunities mainly in the southern African region.Chief Executive Ernie Joubert told Reuters the company was exploring possibilities in Botswana and Mozambique but declined to give details.It would fund most acquisitions through debt, but said it would consider a share issue if an attractive buying opportunity arose.”We have no immediate plans for an IPO …but absolutely we would consider it if we came across an expansion plan that seemed attractive,” Joubert said.Peermont, which floated almost exactly a year ago, said it would pay an interim dividend of 14,6 cents versus 11,4 cents a year earlier.Turnover in the period rose 26 per cent to 560,8 million rand mainly thanks to stronger gaming revenues amid a consumer spending boom fuelled by low inflation and interest rates.Peermont has been shortlisted alongside global gambling giants to run a massive casino complex in Singapore, but the company said yesterday it would consider the cost and benefits of participation before proceeding to the next phase.Joubert said the company was in talks with a potential local partner and would tread cautiously regarding the bid.”The investment is huge, competition is huge and risks high,” he said.-Nampa-Reuters