The Sunday Mail
Online Reporter
LISTED hospitality player Rainbow Tourism Group (RTG) posted a profit before tax of $164 million in the first six months of the year, up 95 percent from $84 million that was registered in the prior comparable period last year.
The upturn in profitability came despite the tourism industry being the most affected by the Covid-19 pandemic globally.
Said group chairman Mr Arthur Manase in a statement accompanying the half-year results:
“Despite business interruption due to the lockdowns, the group’s gross margins for the period, closed at 67 percent, up from 63 percent in 2020.”
He added that the company managed to achieve these positive results through an aggressive cost reduction strategy.
“The improvement in gross margins is attributable to cost reduction measures that were put in place to lessen the effects of low business volumes.”
Occupancy for the period under review was up 1 percentage point to 24 percent in comparison to the first half of 2020 where it closed at 23 percent. This was achieved, despite the business interruptions due to the Covid-19 pandemic lockdown restrictions during the first half.
Other key performance measures were also positive. The Average Daily Rate grew by 24 percent to close the period at $8 395, while Revenue Per Available Room grew by 31 percent to $2 014.
Mr Manase also reported that the group posted revenues of $706 million, which was 53 percent above $462 million recorded in the first half of 2020.”
The group posted earnings before interest, tax, depreciation, and amortisation (EBITDA) of $161 million (23 percent), 9 percent below the prior-year which closed at $177 million (38 percent).
During the period under review, RTG continued with the expansion of the Gateway Stream web and mobile platform through strategic partnerships both locally and in Africa.
Added the chairman:
“The performance posted in the first half of 2021 is an indicator that the Gateway Stream platform has a place and future in the market”.
The platform has grown its rooms stock to over 50 000 rooms listed across 29 African countries.
Mr Manase noted that the key highlight during the period under review was the launch of one of the country’s top artist’s album exclusively on Gateway Stream Music, which resulted in the platform recruiting more than 20 000 additional users onto the platform.
Another milestone was the zero-rating of the Gateway Stream platform, making accessibility and transacting on the platform free from the data charges, to users.
Going forward, the group said it is transforming its business to be technology-driven in all aspects.
Mr Manase said RTG will continue to explore various opportunities presented through its digitization initiatives.
He said the Group remained optimistic of a rebound in the tourism industry owing to the vaccination roll-out drive by Government. And the further easing of the lockdown restrictions in the second half of the year, which is the traditional peak season for the sector, is expected to help the group recover.
