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Friday, December 2, 2022
HomeBusinessRTG Posts Solid HY Profit As Hotel Occupancy Doubled

RTG Posts Solid HY Profit As Hotel Occupancy Doubled

Rainbow Towers

Listed hotelier, Rainbow Tourism Group (RTG) Limited recorded a profit after tax of ZW$ 1.3 billion in inflation adjusted terms, which is thirty one times more than it achieved same time last year thanks to a combination of growth in hotel occupancy and strong performance from its diversified portfolio.

Hotel occupancy reached 48 percent, which was a 100 percent increase from prior year but still below pre-COVID-19 levels.

The group’s results for the Half Year (HY) to June 2022, released today, shows that revenue grew to ZW$ 7.1 billion from ZW$ 2.1 billion which was a 246 percent jump.

The Group’s gross margins closed at 72 percent which is 5 percentage points above 67 percent posted in the same period a year earlier. The improvement in gross profit margins is attributed to cost reduction and strategic pricing measures which were implemented during the period.

“Business volume improved significantly during the period under review buoyed by accommodation, outside catering and Heritage Expeditions Africa activities. Strong performance was from conferencing activities across city hotels as well as the various Gateway Stream revenue channels,” said the Group.

An Earnings Before Interest, Tax, Depreciations and Amortization (EBITDA) of ZW$ 1.8 billion was 300 percent above the ZW$ 470 million posted in 2021 which it attributed to increased revenue and a firm grip on costs.

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“The slowdown in COVID-19 cases over the last six months has resulted in heightened economic activity across all sectors including tourism industry,” said the Group.

The Group declared an interim dividend of ZW$ 380 million with a portion (US$ 250 000) payable in foreign currency.

The Group expects business volumes to continue on an upward trajectory driven by the opening up of international travel.

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