Tsogo Sun Gaming has announced that, despite reduced trading volumes since 19 March 2020 and the 21-day lockdown, which will have a negative impact on the results for the financial year ending 31 March 2020, the group still expects to deliver a solid set of results regardless of this setback.
Cost saving and operating efficiencies were successfully implemented, and new, exciting marketing, CRM and other revenue initiatives were also gaining traction.
With the further focus on appropriate and reduced capital expenditure the Group was strongly on track to reduce debt significantly during the 2021 financial year.
“From Monday 16 March 2020, directly after the President’s speech, the negative impact of the COVID-19 virus became directly evident for the first time, and from Thursday 19 March 2020 the position deteriorated significantly with sites operating with limited capacity due to the regulatory restrictions. All divisions of the group, being LPMs operated in bars and restaurants, bingo sites and casino entertainment complexes, have been impacted,” comments Chris du Toit, CEO of Tsogo Sun Gaming.
“We fully support government’s efforts to prevent the spread of COVID-19 in South Africa. With the lockdown measures announced by the President, all Tsogo Sun Gaming casinos and Galaxy Bingo sites will be closed to the public by Wednesday 25 March 2020. VSlots will close down in line with the various sites where its machines are deployed,” says Du Toit.
“As South Africa’s premier casino and entertainment group, we take our responsibility to our customers and staff seriously and therefore implemented far-reaching measures to provide a safe environment at our establishments prior to the lock down, including bolstering hygiene measures, suspending alcohol sales, delaying promotions, and implementing social distancing at all properties and sites.”
In the coming months, the Group will be implementing further measures to ensure monthly costs are reduced to an absolute minimum. This includes eliminating variable operating costs as quickly as possible, reducing fixed costs and postpone or cancel capital expenditure in order to preserve cash.
“We remain positive that the changes made to the business in the current financial year, and the additional improvements planned over the next financial year, will deliver positive results in the long term, provided we can operate at full capacity again in the near future,” says Du Toit.
“As a management team, we remain focussed on ensuring that the business bounces back strongly when the opportunity arises, whilst acting responsibly during this difficult time. I’d like to take this opportunity to thank our guests for their loyalty and understanding during this unexpected but essential disruption of operations.”