; Tsogo Sun blames bad results on weak economy, political uncertainty – The Citizen

Tsogo Sun blames bad results on weak economy, political uncertainty

However, the group says it remains highly cash generative, and is confident in achieving attractive returns from the growth strategy once the macroeconomic environment improves.

Hospitality group Tsogo Sun said on Wednesday its headline earnings a share fell five percent to 197.8 cents in the year ended March 31, compared with the previous 12 months.

Trading for the year was impacted by the continued pressure on the consumer because of the macroeconomic environment, extremely weak sentiment and political uncertainty.

The hotel, gaming and entertainment group, which has more than 100 hotels in Africa, Seychelles and the Middle East, and is the largest listed hotel and tourism company in South Africa, declared a final gross cash dividend of 70 cents per share.

Tsogo Sun said given the weak state of the economy of South Africa and many of the commodity-focused countries in which the group operates, trading was expected to remain under pressure.

“Growth will depend on how these economies perform going forward, including the impact of changes in commodity prices and the level of policy certainty that the government is able to achieve,” it said.

“Nevertheless, the group remains highly cash generative, and is confident in achieving attractive returns from the growth strategy once the macroeconomic environment improves.”

African News Agency (ANA)

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