Phumelela has its worst year since 1997

PHUMELELA says its losses were exacerbated by the withdrawal, from April, of the group’s 50 percent share of the 6 percent levy on punters’ winnings on fixed-odds bets on horse racing in Gauteng. Supplied
JOHANNESBURG – South Africa’s largest horse-racing operator, Phumelela Gaming and Leisure, just managed to beat the Friday deadline set by the JSE to release its long-overdue results for the year to the end of July.

Phumelela was facing suspension from the JSE after it failed to submit its provisional report within the three-month period stipulated in the JSE’s listing requirements.

Two weeks ago, the JSE trading system had annotated the group with an “RE” to indicate that it has failed to submit its provisional report timeously, and that the listing of the company’s securities was under threat of suspension and possible removal.

However, on Friday Phumelela dodged the suspension by releasing the results, with the company admitting that it had its worst year since the business was first incorporated in 1997.

It said its international operations were continuing to perform at a high level and the local operations, both horse racing and betting, had had a terrible year. “International operations contributed R223.4million in pre-tax profit, but local operations lost a combined R332.4m, up from R51.9m compared to last year,” the group said.