Phumelela may pull the reins on dividends

print

Phumelela may pull the reins on dividends

Published Date: 2019-03-11 | Source: Stephen Gunnion | Author: Stephen Gunnion | Comments

Phumelela may pull the reins on dividends

The sports betting group says given the trading pressures it faces in South Africa, its board may revise its dividend policy.

Phumelela Gaming & Leisure may revise its dividend policy due to tough trading conditions in the sports betting industry. The group says there has been no let-up in the challenging environment it encountered last year and, given the trading pressures it faces in South Africa, its initiative to cut costs and a decline in profitability, its board will give consideration to amending its policy.

In a first-half trading update yesterday, Phumelela said December was particularly bad for the gaming industry, here and abroad. This affected profits at its Betting World and Supabets businesses. Although it kept a lid on costs, betting turnover couldn't keep up with inflation on the expenses line and has, in fact, declined in nominal terms. That's been mitigated to some extent by its international media rights operations and Premier Gateway International (PGI) on the Isle of Man, which have returned strong results for the six months to end-January. Supaworld, a joint-venture between Supabets and Betting World, is also making progress, while Interbet has performed well and in line with management expectations.

The group expects to report a fall of between 14% and 19% in earnings and headline earnings per share. It expects to publish its results on 29 March.

Its shares declined by 8% to R10.40 yesterday.





Similar Stories