November 22, 2017 / 6:03 AM / a year ago

UPDATE 1-S.Africa's Tsogo Sun H1 earnings fall on weak consumer sentiment

(Adds details including revenue, dividend; CEO quote)

JOHANNESBURG, Nov 22 (Reuters) - South African hotelier and casino operator Tsogo Sun reported a 10.5 percent fall in half-year earnings on Wednesday due to depressed demand from cash-strapped consumers as economic growth locally and offshore stagnates.

The owner of Montecasino said adjusted headline earnings per share for the six months-ended September fell to 78.8 cents per share from 88 cents in the prior year.

Core profit, or earnings before interest, tax, depreciation, amortization and property rentals (EBITDAR), was flat.

“As evident in this set of results, trading continues to be impacted by pressure on the consumer due to the macro-economic environment and extremely weak sentiment,” said group Chief Executive Jacques Booysen in a statement.

The hotel industry in South Africa continues to recover from the dual impact of depressed demand and oversupply.

Tsogo Sun, whose hotel brands include Southern Sun, Garden Court and Holiday Inn, said group RevPAR - a key measure of revenue - fell 2 percent. RevPAR is calculated by multiplying a hotel’s average daily room rate by its occupancy rate.

Total revenue for the gaming division decreased 2 percent to 4.4 billion rand ($314.54 million).

The group declared an interim dividend of 32 cents per share, down 6 percent. ($1 = 13.9889 rand) (Reporting by Nqobile Dludla; Editing by Biju Dwarakanath)

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