Hosken Consolidated Investments (HCI) H2 2024 earnings summary

Executive summary

• Revenue increased by 4% to R23.7 billion for the year ended 31 March 2024, with EBITDA up 7% to R6.05 billion and headline earnings at R1.18 billion, down 29% year-over-year due to significant impairments in gaming assets.

• Major operational highlights include a transformative carry loan agreement for Impact Oil & Gas in Namibia, strong recovery in hotels and transport, and continued investment in renewable energy and social initiatives.

• The group maintained a Level 2 B-BBEE certification, with 76% black ownership and 45% black women ownership.

Financial highlights

• Revenue: R23.7 billion, up 4% year-over-year.

• EBITDA: R6.05 billion, up 7% year-over-year.

• Headline earnings: R1.18 billion, down 29% year-over-year, mainly due to R2.8 billion in impairments on casino licences and related assets.

• Net asset carrying value per share: 23,504 cents (2023: 22,466 cents).

• Dividend per share: 100 cents declared for FY2024.

Outlook and guidance

• Management expects continued growth in hotels, transport, and digital media, with a focus on debt reduction and capital discipline.

• The group will pursue further renewable energy investments and expansion in high-potential assets such as Impact Oil & Gas and Inrange Golf.

• Regulatory and macroeconomic challenges in South Africa, including load shedding and policy uncertainty, remain key risks.