RTG posts strong earnings
ROBIN PHIRI
Zimbabwe Stock Exchange-listed hospitality giant Rainbow Tourism Group (RTG) has delivered a solid financial performance for the 12 months to December 31, 2024, driven by robust guest demand and a surge in foreign currency revenues, Business Times can report.
Revenue for the period grew marginally by 2% to US$44.4m, up from US$43.6m in 2023, despite industry-wide margin pressures from inflation. The group’s strategic cost-control measures bolstered gross profit margins to 70%, an improvement from 69% in the previous year.
EBITDA surged by 52% to US$9.7m, compared to US$6.4m in 2023, reflecting a combination of cost-saving initiatives and revenue growth. Profit after tax climbed 18% to US$5.4m, up from US$4.6m in the prior year.
RTG Board Chairman Douglas Hoto attributed the strong performance to strong guest demand, increasing foreign currency inflows and effective cost management.
“The group has achieved another year of growth, driven by strong guest demand and a rise in foreign currency revenues. Occupancy levels at 54% have surpassed pre-COVID 2019 levels. Additionally, cost discipline contributed to operating profit growth. In line with our commitment to shareholder value, the group has declared a US$2.5m dividend for the 2024 financial year. Looking ahead, we remain focused on sustaining growth, optimizing operational efficiencies, and capitalizing on emerging opportunities,” Hoto said.
A standout achievement for RTG was the 15% increase in foreign currency revenues, which rose from US$16.4m in 2023 to US$19m in 2024. This growth underscores the group’s success in attracting international business, a key driver of revenue diversification and financial resilience.
Hoto highlighted the importance of tapping into global markets, stating that international clientele not only boosts revenue but also enhances RTG’s brand presence on the global stage.
RTG’s resort hotels have experienced a strong resurgence, exceeding pre-pandemic occupancy levels, reflecting the growing demand for leisure travel. As travelers increasingly prioritise vacation experiences, the hospitality sector is witnessing a significant recovery, reinforcing the broader revival of the tourism industry.
City hotels have also demonstrated remarkable resilience, successfully attracting business travelers despite regulatory shifts and economic uncertainties. The sustained strength of the urban hotel market showcases RTG’s ability to navigate complex market dynamics while catering to both leisure and corporate clientele.
The divergent performance of resort and city hotels highlights RTG’s strategic agility in serving diverse market segments. By maintaining a balanced portfolio, the group is well-positioned to leverage evolving consumer trends and drive continued growth.
Hoto said RTG remains vigilant to potential headwinds, including economic volatility, geopolitical tensions in key source markets, and global conflicts.
