Phumelela begging

Phumelela Gaming profit down

April 8 2011 at 10:21am
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sxc.hu/
Phumelela Gaming and Leisure (PHM) on Friday reported a 9% decline in diluted headline earnings per share to 42.77 cents for the six months ended January 2011 from 47.10 cents a year ago. The company declared an interim dividend of 25 cents per share.

The company said local trading conditions, particularly for the group's bookmaker and other agent totalisator operations, remained challenging while the strong rand against the major trading currencies impacted negatively on its international operations.

Despite this, profit before income tax from the group's international and ongoing fixed odds (Betting World) operations increased by 20% and 12% respectively.

Total income decreased by 1% to 443.4 million rand, primarily due to income from the terminated Racing UK (RUK) rights agreement included in the comparative period after the agreement was terminated on 28 February 2010. Excluding RUK income, total income increased by 5%.

Total net betting income increased by 3% to 333.5 million rand. Excluding RUK income in the comparative period, other operating income increased by 16%.

Profit before finance costs, income tax, depreciation and amortisation decreased by 4% to 71.3 million rand, while profit from operations decreased by 7% to 54.2 million rand and attributable earnings declined by 17% to 32 million rand.

The group is engaged in talks for a possible merger with the Western Cape racing region following agreement between the KwaZulu-Natal and the Western Cape Boards to unbundle Gold Circle operations.

In addition, in terms of a recent agreement concluded between Phumelela Gold Enterprises and Tabcorp Holdings (Australia), the parties have agreed to joint ownership and control of the group's Isle of Man totalisator operation with the strategic intent of opportunities. The agreement is conditional on receiving all the necessary regulatory and racing industry approvals.

Looking ahead, the group said despite difficult trading conditions management is encouraged by a marked improvement in the local betting handle trend from January 2011 to date. If the current momentum is maintained local operations are positioned for growth in the second half. International operations continue to trade well despite Rand strength and the loss of the RUK rights, the company added. - I-Net Bridge

www.iol.co.za/business/companies/phumele...rofit-down-1.1054096

any update on the status of Phumelela getting government help?

They can keep the bag of sand they are due us if it helps them

Read Ian Jayes and Oscar Foulkes on Sporting Post

Maybe many a persons ears will open to the appeals of Ian Jayes and Mr Ormonde Ferraris who have been in the minority of fighting racings Ju Ju''s

If the gov wants another SAA or SABC on their hands then they best start writing cheques

can P sell racing to the gov - ? the ROI salient points ?? when P + GC cant even market racing themselves...nor understand branding. It needs someone like Sol Kerzner but with the Japanese control plan of systems so as to keep it clean and assure the customer of integrity. Hell, it doesn't even need a Sol, there have been a few individuals over the last 10 years or so within racing who have been saying what should be done - can they not be brought together around a table and a new strategy worked out? Let the ones who have run racing into the ground fall on their swords and get out of the way please.

Is there any update as to progress after the GC meeting and Phum declaring publically in the press they are seeking gov help?