THE INVESTMENT by local empowerment group Grand Parade Investments (GPI) in limited payout machines (LPMs) appears to be paying off handsomely – especially in the Western Cape. GPI, which
operates the GrandSlots business in the Western Cape, reported gross gaming revenue from LPMs up 17% from R396m to R463m for the year to end June. GPI chairman Hassen Adams pointed out that this was achieved despite the number of active LPMs in SA increasing by around 8% from 7,439 to 8,021. Adams said the Western Cape remained the best-performing province in the country in terms of LPM gross gaming revenue, and that GrandSlots remained GPI’s best-performing LPM operation.
GrandSlots generated gross gaming revenue of R281m - up 13% on the previous year. With only one competitor, Adams said GrandSlots enjoyed a 56,1% annual Gross gaming market share and a 52,8% (854 LPMs) of LPM market share in June 2013.
“Our average GGR per machine per day increased from R767,68 to R889,08 over the same period.”
The strong performances from GPI’s LPM operations have been mirrored by its major rival Vukani, which has also reported marked growth in its slot operations (albeit without a detailed provincial breakdown.)
Gaming looks grand again
THE GrandWest casino in Goodwood, operated by gaming giant Sun International, is back to its winning ways. In the year to end June the GrandWest pushed revenue up 5% to almost R1,9bn. More impressive, though, was that good cost control meant an improved operating margin and a 6% hike in profits to R789m.
The Golden Valley casino in Worcester looked a little less sprightly, though. The Golden Valley Casino’s revenue was flat at R128m and its profits decreased 14% to R28,5m. But it should be noted the casino was badly affected by the prolonged (and violent) farm strikes in the area. The casino did, though, shift from a bottom line loss of R1,4m to a net profit of R900,000.
The performance of Golden Valley does raise questions around the performance of other smaller casinos in the Western Cape. Results for the better established Caledon and Mykonos casinos – owned by Tsogo Sun – should be published in November and perhaps point to Golden Valley’s long term potential.
By Jenni McCann