Company news in brief
Sun International reports H1 loss
South Africa's Sun International Ltd (SUIJ.J) said yesterday its half-year headline loss narrowed to R7 million as Covid-19 lockdown restrictions eased, allowing for its casinos and hotels to trade.
The group, which runs Sun City resort and high-end hotels The Maslow Sandton and The Table Bay, had reported an adjusted headline loss of R885 million in the prior year.
Adjusted earnings before interest, tax, depreciation and amortization from continuing operations increased to R739 million from R60 million, Sun International said.
Casino income, its biggest revenue generator, rose by 53% to R2.3 billion despite low footfall due to a lack of shows, concerts and general entertainment at its casino complexes.
Income at the resorts and hospitality operations rose by 21%, while alternate gaming, which includes sports betting, jumped by 97% as international sports resumed. Overall group income from continuing operations rose by 51% to R3.8 billion. – Nampa/Reuters
Massmart to sell 14 Game stores
Massmart is disposing of all its general merchandise Game stores in West and East Africa to stem losses in that struggling business, chief executive Mitch Slape said, after the Walmart majority-owned retailer reported a narrower half-year loss.
Like its peer Shoprite Holdings, forays into African markets including Nigeria have been marred by currency volatility and constrained consumer demand, making it difficult to operate profitably on the continent once touted as the next bright growth spot for retailers.
As part of a turnaround plan to stabilise the business, Massmart had said it will review its store portfolio outside of Southern Africa. That review has now resulted in the disposal of 14 stores across Ghana, Nigeria, Uganda, Kenya and Tanzania.
Slape said the move will result in an annual profit before interest and tax improvement of R750 million.
Game sales from the rest of the Africa stores fell by 18.6% in rand terms in the 26 weeks ended June, and by 5% in constant currencies, due to continued currency weaknesses, Massmart with presence in 12 African countries said.
Game reported a narrower trading loss of R347.3 million in the period. – Nampa/Reuters
Lufthansa to woo business travellers
German airline Lufthansa aims to win back business travellers by increasing the number of flights and improving catering, an executive board member was quoted as saying on Sunday.
Lufthansa is carrying about 50% of the passengers it flew before the coronavirus crisis in 2019 and flying to 88% of pre-pandemic destinations.
"Daily frequencies will increase on many connections," Christina Foerster, Lufthansa board member for Customer, IT & Corporate Responsibility, told the Funke media group on Sunday.
Foerster also said the airline would add a midday flight on particularly popular routes and that it will introduce new menus for premium customers from Sept. 1, combining German cuisine with international influences.
The airline is well prepared for a surge in demand when travel to the United States reopens, Foerster added. – Nampa/Reuters
Google Play app store generates billions
Alphabet Inc's Google generated US$11.2 billion in revenue from its mobile app store in 2019, according to a court filing unsealed on Saturday, offering a clear view into the service's financial results for the first time.
Attorneys general for Utah and 36 other US states or districts suing Google over alleged antitrust violations with the app store also said in the newly unredacted filing that the business in 2019 had US$8.5 billion in gross profit and US$7 billion in operating income, for an operating margin of over 62%.
The figures include sales of apps, in-app purchase and app store ads. Google told Reuters the data "are being used to mischaracterise our business in a meritless lawsuit."
The company and its accusers said in a separate filing on Saturday a trial in late 2022 is possible over whether Google abuses its alleged monopoly in app sales for Android devices. – Nampa/Reuters
Kraft Heinz to mandate vaccines
Kraft Heinz Co said all US employees will need to be fully vaccinated against Covid-19 before returning to offices in January, as the fast-spreading Delta variant batters the United States.
The packaged-food maker's announcement comes days after the US Food and Drug Administration granted full approval to the Pfizer Inc/BioNTech SE vaccine, a certification that public health officials hope will convince unvaccinated Americans that the shot is safe and effective.
The resurgence of Covid-19 cases in the United States and new regulatory guidance have led companies to change their plans on vaccinations and masking.
For now, Kraft's decision to mandate vaccination applies only to its office population, unless they have obtained a health-related or religious accommodation, the company said.
Kraft also said its offices, including the Aon headquarters in Chicago, would open in September on a voluntary basis to vaccinated employees. – Nampa/Reuters
South Africa's Sun International Ltd (SUIJ.J) said yesterday its half-year headline loss narrowed to R7 million as Covid-19 lockdown restrictions eased, allowing for its casinos and hotels to trade.
The group, which runs Sun City resort and high-end hotels The Maslow Sandton and The Table Bay, had reported an adjusted headline loss of R885 million in the prior year.
Adjusted earnings before interest, tax, depreciation and amortization from continuing operations increased to R739 million from R60 million, Sun International said.
Casino income, its biggest revenue generator, rose by 53% to R2.3 billion despite low footfall due to a lack of shows, concerts and general entertainment at its casino complexes.
Income at the resorts and hospitality operations rose by 21%, while alternate gaming, which includes sports betting, jumped by 97% as international sports resumed. Overall group income from continuing operations rose by 51% to R3.8 billion. – Nampa/Reuters
Massmart to sell 14 Game stores
Massmart is disposing of all its general merchandise Game stores in West and East Africa to stem losses in that struggling business, chief executive Mitch Slape said, after the Walmart majority-owned retailer reported a narrower half-year loss.
Like its peer Shoprite Holdings, forays into African markets including Nigeria have been marred by currency volatility and constrained consumer demand, making it difficult to operate profitably on the continent once touted as the next bright growth spot for retailers.
As part of a turnaround plan to stabilise the business, Massmart had said it will review its store portfolio outside of Southern Africa. That review has now resulted in the disposal of 14 stores across Ghana, Nigeria, Uganda, Kenya and Tanzania.
Slape said the move will result in an annual profit before interest and tax improvement of R750 million.
Game sales from the rest of the Africa stores fell by 18.6% in rand terms in the 26 weeks ended June, and by 5% in constant currencies, due to continued currency weaknesses, Massmart with presence in 12 African countries said.
Game reported a narrower trading loss of R347.3 million in the period. – Nampa/Reuters
Lufthansa to woo business travellers
German airline Lufthansa aims to win back business travellers by increasing the number of flights and improving catering, an executive board member was quoted as saying on Sunday.
Lufthansa is carrying about 50% of the passengers it flew before the coronavirus crisis in 2019 and flying to 88% of pre-pandemic destinations.
"Daily frequencies will increase on many connections," Christina Foerster, Lufthansa board member for Customer, IT & Corporate Responsibility, told the Funke media group on Sunday.
Foerster also said the airline would add a midday flight on particularly popular routes and that it will introduce new menus for premium customers from Sept. 1, combining German cuisine with international influences.
The airline is well prepared for a surge in demand when travel to the United States reopens, Foerster added. – Nampa/Reuters
Google Play app store generates billions
Alphabet Inc's Google generated US$11.2 billion in revenue from its mobile app store in 2019, according to a court filing unsealed on Saturday, offering a clear view into the service's financial results for the first time.
Attorneys general for Utah and 36 other US states or districts suing Google over alleged antitrust violations with the app store also said in the newly unredacted filing that the business in 2019 had US$8.5 billion in gross profit and US$7 billion in operating income, for an operating margin of over 62%.
The figures include sales of apps, in-app purchase and app store ads. Google told Reuters the data "are being used to mischaracterise our business in a meritless lawsuit."
The company and its accusers said in a separate filing on Saturday a trial in late 2022 is possible over whether Google abuses its alleged monopoly in app sales for Android devices. – Nampa/Reuters
Kraft Heinz to mandate vaccines
Kraft Heinz Co said all US employees will need to be fully vaccinated against Covid-19 before returning to offices in January, as the fast-spreading Delta variant batters the United States.
The packaged-food maker's announcement comes days after the US Food and Drug Administration granted full approval to the Pfizer Inc/BioNTech SE vaccine, a certification that public health officials hope will convince unvaccinated Americans that the shot is safe and effective.
The resurgence of Covid-19 cases in the United States and new regulatory guidance have led companies to change their plans on vaccinations and masking.
For now, Kraft's decision to mandate vaccination applies only to its office population, unless they have obtained a health-related or religious accommodation, the company said.
Kraft also said its offices, including the Aon headquarters in Chicago, would open in September on a voluntary basis to vaccinated employees. – Nampa/Reuters
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