Tsogo Sun Holdings. JSE: TSH

Tsogo Sun shares

Background of Tsogo Sun

  • With a history stretching back to its establishment by business magnate Sol Kerzner in 1969, Tsogo Sun is today one of Africa’s largest hospitality, gaming and entertainment groups. The company owns and operates a large portfolio of casinos, entertainment destinations and hotel destinations across South Africa and in Mozambique, Kenya, Nigeria, Tanzania, Zambia, the Seychelles and Middle East.

  • The group’s operations are split into the Tsogo Sun Gaming and Tsogo Sun Hotels divisions. The gaming division contributes 72% of revenue, encompassing 14 casinos, including flagships such as Montecasino, Gold Reef City, Silverstar and Suncoast. Tsogo Sun Hotels comprises 80 owned or leased hotels, ranging from budget to luxury, with flagship properties including Beverly Hills, Sandton Sun and the Intercontinental, Sun1, Sun Resorts, Holiday Inn and StayEasy chains.

  • Tsogo Sun shares are available to buy on the Johannesburg Stock Exchange (JSE), where the group has a market cap of more than R30 billion.

Tsogo Sun Shares Growth Driver

  • In the important Gaming division, Tsogo Sun drives growth by placing gaming and entertainment complexes in urban areas which are entertainment hubs for the communities they serve. An important aspect of the operating model is to ensure that facilities remain attractive and relevant, while mutually beneficial relationships with restaurant, retail and entertainment tenants are key to maintaining footfall. The rewards programme is also important, as 75% of revenue is generated by reward club members.

  • In the Hotel division, diversification of the portfolio is a key differentiator for driving performance. The group offers a wide variety of quality, budget through to luxury, hotel products. Tsogo Sun opts not to use the popular ‘asset light’ model of many competitors, choosing instead to operate on a more capital intensive basis which retains control and quality of hotels. Non-core assets are sometimes held for sale in order to enhance the portfolio.

  • Depsite a constrained consumer environment, Tsogo Sun’s financial data for 2016 illustrated a strong year for the group. Overall income increased by 8% to more than R12 billion, with both divisions registering profit increases. In addition to organic growth, a total of R962 million was spent to buy hotel businesses and expand existing properties. This included the group deciding to buy a 25% stake of Redefine BDL Hotel Management and International Hotel Group, which has opened a platform for growth in the UK and European markets. Profit for the year increased from R1.7 billion to R1.8 billion, while shareholders enjoyed a 10% increase in full year dividends to 98 cents per share.

Tsogo Sun Group Investor Tip

  • Tsogo Sun share price has enjoyed a strong run on the live online JSE stocks chart, rising from R19.85 in December 2015 to R28.70 a year later. Tsogo Sun shares have proved to be a profitable buy for investors, and continue to be one of the blue-chip leisure stocks. Indications are that there is potential for further upside growth in Tsogo Sun share price, especially if the economy in South Africa strengthens. International diversification will also play a key role in the future.

Tsogo Sun Major Shareholders

Tsogo Investment Holding Company, SBG Securities, Liberty Life, Old Mutual

  • Sector

    Travel & Leisure

  • Industry

    Gaming & Hotels
  • Sub industry

    Gaming & Hotels

How to buy Tsogo Sun Group Shares

  • Tsogo Sun : How to buy Tsogo Sun Group Shares Online

    We have made it simple to buy JSE listed firm shares online. The easiest way to buy Tsogo Sun shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in Tsogo Sun and assist you with the setup and management of your stock portfolio account.

  • Here are the steps you must follow to Buy / Tsogo Sun Group shares with utmost confidence:

    1. Start by Filling in the BUY THIS SHARE form.
    2. Insert your name, email, telephone number and monthly remuneration.
    3. Then, Indicate the amount you are looking to invest in Tsogo Sun.
    4. Click the “ INVEST NOW” button
    5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
    6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)
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<a href="https://www.sashares.co.za/tsogo-sun-shares">Credits: SA Shares™</a>
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