Tsogo Sun Gaming has announced that, despite the negative impact of the COVID-19 pandemic, the group still expects to deliver solid results for the financial year ending 31 March 2020. This outcome has been made possible through new revenue initiatives which have been gaining traction, as well as cost saving and operating efficiencies.
“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,” he adds.
In the coming months, the group will implement further measures to reduce monthly costs. This includes eliminating variable operating costs as quickly as possible, reducing fixed costs and postponing or canceling 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.