Gold Reef CEO Pushing for Another CT Metropole Casino
The city of Cape Town's Grandwest Casino is under assessment by Gold Reef Resorts CEO Steven Joffe as revenues at Western Cape casinos have fallen. Grandwest being the only casino in Cape Town metropole has declined 6.4% annually and Joffe wants to look at bringing his West Coast Club Mykonos casino closer to the metropole.
In the article below Juluis Baumann reports on the reassessment of Grandwest casino with Western Cape MEC Alan Winde. Use the navigation link to view articles on The City of Cape Town on CBN's website as well as other business related articles.
Gold Reef Resorts wants reassessment of exclusive Cape Town casino
Author: Juluis Baumann
Gold Reef Resorts had suggested to Western Cape finance MEC Alan Winde that the issue of an exclusive casino licence in the Cape Town metropole — which Sun International is holding through its Grand West Casino — be reviewed, Gold Reef CEO Steven Joffe said yesterday.
Sun International’s exclusivity period comes to an end next year and Joffe is eager to explore the possibility of moving its Mykonos Casino in Langebaan closer to Cape Town. GrandWest Casino, which Sun International co-owns and operates with Grand Parade Investments , is the group’s top money-spinner and the introduction of competition is likely to hit revenue and profit hard.
The discussions also come at a time when the Western Cape gaming industry is under huge pressure due to the slowdown in the economy.
Gold Reef Resorts said yesterday that revenue at Mykonos for the six months to end-June this year fell 2% to R55m, while earnings before interest, tax, depreciation amortisation and rentals slipped 8% to R22m. Footfall had slumped 15%.
“A significant portion of our business came from the participants in the Western Cape property industry, but with the slump in the property market, those involved in that industry have stayed away,” Joffe said.
Gold Reef’s other Western Cape property, Garden Route Casino, saw revenue fall 6% to R76m compared with the previous six-month period, while footfall declined 5%. Sun International too reported yesterday, saying GrandWest had seen revenue decline of 6,4% to R1,642bn year on year while operating profit fell 9,4% to R535m.
Sun International CEO David Coutts-Trotter was reluctant to discuss the introduction of competition into the Cape Town metropole.
“We will look at both sides of the argument, but I don’t think it is appropriate to debate the issue in the media,” he said .
Date Created: 2009-08-28 |
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