Sun International of South Africa Plunges into $75 Million Loss Due to Pandemic

One of the biggest casino operators in South Africa is Sun International. In last year, the revenue of this casino sliced into half almost. The company faces a loss of nearly US $75 million.

In 2020 Sun City, GrandWest, and Boardwalk of Sun International were forced to close due to covid-19 for more than three months. Moreover, there are other severe factors such as unending government restrictions, restrictions on travel for infinite time, issues on alcohol sale, restricted public gathering, and pressure of gaming and hospitality sector of other countries.

According to the property concern of Sun International, in the last 12 months, almost 2300 people lost their job in an overall pressure situation.

The year 2020 was not easy for Sun City International. It was going hard enough as it bears the loss of the death of its founder Sol Kerzner. Sole Kerzner was a visionary and controversial casino owner.

South Africa’s Worrying Variant Covid 19

The whole is battling Covid 19, and South Africa is doing so. Though some vaccines are assumed to evade coronavirus, in mid-January, the second wave of this virus started. Per day almost 20,000 people are infected with this virus in South Africa.

Anthony Leeming, CEO of Sun International, said that to mitigate the impact of the restriction, the group must take the necessary action. Seven thousand people at present are working in Sun International. Sixty percent payroll costs reduced as the working hour has been reduced by a portion of working staff.

Two properties of Sun International have been closed in South Africa and Swaziland.

To optimize the working capital, lenders negotiations, deferment of payment, and to reduce the cost, they work hard, said Leeming. Certain parts restriction and operational efficiencies are achieved through the proper formulation and implementation of the plan, Leeming added.

Low Demand

The demand for international and business travel remains low. Thus, they are now focusing on reducing costs and local leisure. It could be profitable in the short run. And I was thinking to make the arrangement for the midweek leisure business.