LIVINGSTONE MARUFU
Listed hospitality and leisure group Rainbow Tourism Group (RTG) has reported a 2 417 percent after tax profit growth to ZWL$$5,4 million in the six months to June 2019, from ZWL$0,21million in the comparable period in prior year, largely attributable to a huge jump in revenues.
Revenues for the group went up 170 percent in the period period under review to ZWL$37 million, compared to ZWL$13,7 million in the same period in 2018.
RTG chairman, Arthur Manase said the growth was registered in spite of business disruption arising from the January 2019 protests as well as temporary closure of Bulawayo in the first quarter of 2019 for renovations.
The group generated foreign currency revenues of US$4,8 million, five percent up from US$4,4 million recorded during the same period last year due to increased foreign arrivals into resort hotels.
Manase also said overall arrivals into RTG hotels grew by 14 percent compared to the national average of one percent in May, according to Zimbabwe Tourism Authority report.
“Revenue per Available Room (RevPAR), which is a product of occupancy and rate closed at ZWL$120. This is 186 percent above ZWL$42 recorded in 2018 and occupancy for the period under review declined by 10 percent points from 53 percent in 2018 to 43 percent,” said Manase.
The gross profit margin closed at 74 percent, 10 percent above 64 percent recorded during the same period last year. RTG said the relentless choke-hold on costs has been instrumental in driving the heightened performance. EBITDA grew by 364 percent to ZWL$10,2 million from $2.2 million recorded in the same period in 2018. The growth in EBITDA demonstrates the company’s ability and capacity to navigate the increasingly challenging operating environment.
In the first half of 2019, the company invested ZWL$5,7million in product upgrades which included Rainbow Hotel refurbishment. The group has declared a dividend of 0,1 cents per share payable to all ordinary shareholders of the company.
Going forward, the company will continue to pursue an asset-light growth model that does not require fresh shareholder investments. The model leverages on the immense brand value of the company in Zimbabwe and beyond.
