Black Friday for Phumelela

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1 month 3 weeks ago #776474 by Over the Air
Black Friday for Phumelela was created by Over the Air
Results are being broadcast on Business Day TV channel 412 at 11am. Imagine being the poor fish having to deliver these beauts and try maintain an illusion of being in control.

• a basic loss is expected of between R80 million and R100 million, compared with a basic profit of
R155.1 million in the prior year;
• a basic loss per share is expected of between 80 cents and 100 cents, compared with a basic profit
of 153.78 cents in the prior year;.
• a headline loss is expected of between R90 million and R100 million, compared with a headline
profit of R155.6 million in the prior year; and
• a headline loss per share is expected of between 90 cents and 100 cents, compared with a headline
profit of 154.23 cents in the prior year, which equates to a decrease of between 158% and 165%.

Included within the basic loss and headline loss are the following material items which collectively
amount to R110 million:

• R30 million in restructuring costs;
• R32 million for a franchise provision in the North West province;
• R26 million in lost income for four months of the financial year due to the withholding of the Gauteng
betting levy, as referenced in previous SENS announcements;
• R12 million annual cost due to the increase in VAT to 15% in April 2018, which is an ongoing
reduction in income as there is no relief on the take-out ratio after provincial taxes and levies; and
• R10 million cost for the social responsibility development programme.

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1 month 3 weeks ago - 1 month 3 weeks ago #776477 by oscar
Results are up?

Net debt to equity ratio up to 33% from 23%, I wonder who's lending them money??

Desperately looking for new B-BBEE partner to take equity with a bail out I think.
Last edit: 1 month 3 weeks ago by oscar.

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1 month 3 weeks ago #776479 by Bob Brogan
Bob Brogan on topic Black Friday for Phumelela
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PHUMELELA GAMING & LEISURE LIMITED - Audited Abridged Consolidated Annual Financial Statements and Further Cautionary Announcement

Release Date: 29/11/2019 07:10:00 Code(s): PHM PDF(s): Sens Financial Results
Audited Abridged Consolidated Annual Financial Statements and Further Cautionary Announcement

Phumelela Gaming and Leisure Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1997/016610/06)
Share Code: PHM ISIN: ZAE000039269

AUDITED ABRIDGED CONSOLIDATED ANNUAL FINANCIAL RESULTS FOR THE 12 MONTHS ENDED 31 JULY 2019
AND FURTHER CAUTIONARY ANNOUNCEMENT


Salient operational features
- An unusually high number of local and international sporting results favoured gaming
customers, affecting margins at Betting World and Supabets
- Betting operations struggled in a depressed economy
- Horseracing under considerable pressure and facing regulatory uncertainty
- PGI on the Isle of Man once again performed very well
- Demand for live South African horseracing remains buoyant internationally
- Rightsizing of headcount and footprint targeted to realise significant long-term savings


Salient financial features
- Withdrawal of the Gauteng betting levy is a R75 million annualised loss of income
- Headline loss per share of 98,20 cents compared with headline earnings per share of
154,23 cents
- Attributable loss per share of 92,32 cents compared with attributable profit of
153,78 cents per share
- Equity accounted profits R163,3 million compared with R169,2 million
- A 9% rise in international profits to R223,4 million
- Net asset value per share reduces by 16% to 849,94 cents
- No interim or final dividend per share declared
- Net debt to equity ratio 33% compared with 23%
- Attention is drawn to the emphasis of matter by the Group auditors


This short-form announcement is the responsibility of the directors of the Company. It contains
only a summary of the information in the full announcement ("full announcement") and does not
contain full or complete details.

The full announcement can be found at:
senspdf.jse.co.za/documents/2019/jse/isse/PHM/F2019.pdf

A copy of the full announcement is also available for viewing on the Company's website at
www.phumelela.co.za/investor-relations/annual-results or may be requested in person, at the
Company's registered office or the office of the sponsor, at no charge, during office hours.
Any investment decisions by investors and/or shareholders should be based on consideration of
the full announcement, as a whole.

RENEWAL OF CAUTIONARY AND FURTHERMORE A NEW CAUTIONARY ANNOUNCEMENT
The Company remains under cautionary as engagements with the MEC and the Gauteng Gambling Board
are still in progress.

Furthermore, the Company is considering capital raising initiatives with B-BBEE equity ownership
high on the agenda. Should these initiatives be succesfully concluded these may have a material
effect on the Company's securities.

Shareholders are advised to continue to exercise caution when dealing in the Company's
securities.

By order of the Board
B Kantor JA Stuart
Chairman Chief Executive Officer
28 November 2019


Directors: B Kantor (Chairman), M Tembe**, JA Stuart* (Group Chief Executive),
AW Heide* (Group Finance Director and COO), SKC Khampepe, SA Mahlalela,
NJ Mboweni (Mrs), SH Müller, Dr E Nkosi, JB Walters
(*Executive, **Lead Independent)

Company Secretary: F Moloi (Ms)
Registered Office: Turffontein Racecourse, 14 Turf Club Street, Turffontein, Johannesburg
Transfer Secretaries: Computershare Investor Services Proprietary Limited
Sponsor: Investec Bank Limited

Date: 29-11-2019 07:10:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.

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1 month 3 weeks ago #776496 by Over the Air
Over the Air on topic Black Friday for Phumelela
I will go through the results in greater detail at a later stage, however from the presentation given by Kantor and Stuart I took the following away:

- This is not a qualified audit report
- Phumelela are in breach of covenant irt the loans
- In Phumelelas opinion they have done nothing wrong and its all the bookmakers fault
- Bookmakers have 66% of the tote business ( in other words open bet is bigger than what goes through the tote
- Phumelela want Gold Circle and Kenilworth Racing to merge with them
- Another 90m loss will result in the end of racing
- Government hate racing because its an elitist white sport
- 15% OF STAFF WERE RETRENCHED BUT THE WAGE BILL ONLY DROPPED 11%. Make of that what you will but it seems that the top dogs are just dandy.

What interests me is the fact that Supabets were down 63% on last year but Stuart proclaims them as the messiahs. Interbet were down 5% and hardly get a mention.

As an aside Stuart looked haggard and was a poor presenter. Kantor, bless him, was the favourite uncle we all know and love. No mention of Investec funnily.

For a man that earns 3 million Rand a year before perks, and carries on about parade ring dress code, our Larry cut a dashing figure in his bright Kappa tracksuit. You would think that a working day in the presence of influential journalists may have got him to at least business casual.

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1 month 3 weeks ago #776498 by oscar
Without local horse racing the local bookmakers will also have a problem so its in their interest also to do what they can like Hollywood are doing. In fact Hollywood should put a consortium of owners etc and bookmakers together to buy the assets at a good price and move forwards from there.

In chess you cannot get out of a Check situation unless you think differently to the way you went into check otherwise its checkmate.
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1 month 3 weeks ago #776499 by Over the Air
Over the Air on topic Black Friday for Phumelela
Agree with you Oscar

For all the Kimberley lovers, it was said that Kimberley was due to close because it was uneconomical. They may keep it open if a proposed sponsorship materialises.

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1 month 3 weeks ago #776516 by Muhtiman
Muhtiman on topic Black Friday for Phumelela
....caught a clip of John Stuart reading a promo of Phum actions before results.....never seen a paler deer in a spotlight....:ohmy:

....he looked more like a 1980;s Star Wars hologram.... :S

My idea of "help from above" is a sniper on the roof
and a higher power is a hell fire missile armed drone.

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1 month 3 weeks ago #776519 by Sylvester
Sylvester on topic Black Friday for Phumelela
Does not sound good!
Does Phumelela have the correct people to manage a turn around?
Did anyone ask them if they plan to delist?

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1 month 3 weeks ago - 1 month 3 weeks ago #776530 by Garrick
Garrick on topic Black Friday for Phumelela
Sorry, gentlemen, but I have to disagree with all of you regarding 'bookmaker survival' and its perceived dependence on horse racing.

Bookmakers have already largely adjusted to to the decline in horse racing turnovers.

Sport, numbers et al have largely filled the gap according to my sources.
Last edit: 1 month 3 weeks ago by Garrick.
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1 month 3 weeks ago #776534 by oscar

Garrick wrote: Sorry, gentlemen, but I have to disagree with all of you regarding 'bookmaker survival' and its perceived dependence on horse racing.

Bookmakers have already largely adjusted to to the decline in horse racing turnovers.

Sport, numbers et al have largely filled the gap according to my sources.[/quot

Without horseracing there is no TT , they already do a bigger turnover than the tote on races including the open bet.. horseracing goes local bookmakers will battle..

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1 month 3 weeks ago #776547 by Bob Brogan
Bob Brogan on topic Black Friday for Phumelela
I would be more scared about the next international TV deal than the bookmakers

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1 month 3 weeks ago #776549 by Garrick
Garrick on topic Black Friday for Phumelela
Oscar - I find your response completely confusing and would appreciate your clarification.

Quote - 'Without Tellytrack there is no horse racing.....'

That's patently incorrect. It is already an accepted fact that the viewrship enjoyed by Tellytrack is already so small that Multichoice wished to dump it and use the slot for other offerings. Racing's survival is most certainly NOT dependent on Tellytrack,

Quote -

.....they already do a bigger turnover than the tote on races including the open bet

Who is the 'they' you are referring to? I'm totally confused. (But I'm old so you need to cut me some slack).

Quote :

........horseracing goes local bookmakers will battle..

Sorry! But wrong again. Most of them wouldn't even notice racing's demise. Soccer, numbers etc., long ago overtook racing.

By way of a simple example allow me to quote you the example of my own bookmaker. He has been in the business for about 40 years and has a substantial clientele.

Racing comprises about 20% of his current turnover. That's down from about 60% 5 year ago. The real bookmaking game is about sport. Nothing more. Nothing less.

Now also allow me to quote you my own expereience :

I statrted in racing in 1972. For nearly 30 years my betting was exclusively on local SA racing. From about 2000 onwards I developed a preference for UK racing and sport until my retirement from ALL punting in the last year.

As soon as UK streaming became available I stopped using Tellytrack altogether unless it was in the evening when the TV broadcast has a slightly lesser delay period than the stream. Other than that I AVOIDED Tellytrack altogether because of its poor production quality and its absolutely dreadful in studio 'pundits'.

During this period sports betting also gained traction. My activity in this field quickly comprised hundreds of thousands of rands in betting activity. Racing shrunk further.

Over the same period I owned approximately 40 - 50 horses. Today I have one. It will be my last. I too would not even notice if SA racing evaporated. Given the amount of effort the operator has expended on ruining it there is no surprise there.

Everything ends. If racing were to die (and declining interest and on course attendance is any guide) don't expect a big turnout at the funeral.
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1 month 3 weeks ago #776553 by mr hawaii
mr hawaii on topic Black Friday for Phumelela
Both Hollywood and Betexchange boksburg and Benoni you need a map to find the Racing area - The sports and numbers bettors spill out the door-

THE MORE YOU STUDY FORM THE LUCKIER YOU GET

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1 month 3 weeks ago #776586 by oscar

Garrick wrote: Oscar - I find your response completely confusing and would appreciate your clarification.

Quote - 'Without Tellytrack there is no horse racing.....'

That's patently incorrect. It is already an accepted fact that the viewrship enjoyed by Tellytrack is already so small that Multichoice wished to dump it and use the slot for other offerings. Racing's survival is most certainly NOT dependent on Tellytrack,

Quote -

.....they already do a bigger turnover than the tote on races including the open bet

Who is the 'they' you are referring to? I'm totally confused. (But I'm old so you need to cut me some slack).

Quote :

........horseracing goes local bookmakers will battle..

Sorry! But wrong again. Most of them wouldn't even notice racing's demise. Soccer, numbers etc., long ago overtook racing.

By way of a simple example allow me to quote you the example of my own bookmaker. He has been in the business for about 40 years and has a substantial clientele.

Racing comprises about 20% of his current turnover. That's down from about 60% 5 year ago. The real bookmaking game is about sport. Nothing more. Nothing less.

Now also allow me to quote you my own expereience :

I statrted in racing in 1972. For nearly 30 years my betting was exclusively on local SA racing. From about 2000 onwards I developed a preference for UK racing and sport until my retirement from ALL punting in the last year.

As soon as UK streaming became available I stopped using Tellytrack altogether unless it was in the evening when the TV broadcast has a slightly lesser delay period than the stream. Other than that I AVOIDED Tellytrack altogether because of its poor production quality and its absolutely dreadful in studio 'pundits'.

During this period sports betting also gained traction. My activity in this field quickly comprised hundreds of thousands of rands in betting activity. Racing shrunk further.

Over the same period I owned approximately 40 - 50 horses. Today I have one. It will be my last. I too would not even notice if SA racing evaporated. Given the amount of effort the operator has expended on ruining it there is no surprise there.

Everything ends. If racing were to die (and declining interest and on course attendance is any guide) don't expect a big turnout at the funeral.


Bud maybe it was rushed in the car.. however without horseracing there will be NO TT not the other way around as you put it..

However let’s not get into an argument about words as we all a similar objection.. if horseracing goes I won’t be able to repost this and debate it further as ABC goes.. I still maintain.. if horseracing goes local bookmakers are in trouble.. yes sports betting is big I know that’s my game I hardly bet on horses nor do my buddies.. I challenge any big bookmaker ( Garrick you find one) who has shops nationally to give us a breakdown:
1. Turnover SA racing
2. Turnover sport
3. Turnover numbers

average for one year in % ‘a only?

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1 month 3 weeks ago #776588 by oscar

Garrick wrote: Oscar - I find your response completely confusing and would appreciate your clarification.

Quote - 'Without Tellytrack there is no horse racing.....'

That's patently incorrect. It is already an accepted fact that the viewrship enjoyed by Tellytrack is already so small that Multichoice wished to dump it and use the slot for other offerings. Racing's survival is most certainly NOT dependent on Tellytrack,

Quote -

.....they already do a bigger turnover than the tote on races including the open bet

Who is the 'they' you are referring to? I'm totally confused. (But I'm old so you need to cut me some slack).

Quote :

........horseracing goes local bookmakers will battle..

Sorry! But wrong again. Most of them wouldn't even notice racing's demise. Soccer, numbers etc., long ago overtook racing.

By way of a simple example allow me to quote you the example of my own bookmaker. He has been in the business for about 40 years and has a substantial clientele.

Racing comprises about 20% of his current turnover. That's down from about 60% 5 year ago. The real bookmaking game is about sport. Nothing more. Nothing less.

Now also allow me to quote you my own expereience :

I statrted in racing in 1972. For nearly 30 years my betting was exclusively on local SA racing. From about 2000 onwards I developed a preference for UK racing and sport until my retirement from ALL punting in the last year.

As soon as UK streaming became available I stopped using Tellytrack altogether unless it was in the evening when the TV broadcast has a slightly lesser delay period than the stream. Other than that I AVOIDED Tellytrack altogether because of its poor production quality and its absolutely dreadful in studio 'pundits'.

During this period sports betting also gained traction. My activity in this field quickly comprised hundreds of thousands of rands in betting activity. Racing shrunk further.

Over the same period I owned approximately 40 - 50 horses. Today I have one. It will be my last. I too would not even notice if SA racing evaporated. Given the amount of effort the operator has expended on ruining it there is no surprise there.

Everything ends. If racing were to die (and declining interest and on course attendance is any guide) don't expect a big turnout at the funeral.


In fact break it down just one more for me Garrick
1 Turnover horseracing LOCAL
2 Turnover horseracing INTERNATIONAL

Enjoy the Summer Cup bud

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1 month 3 weeks ago #776594 by oscar
PS that’s if there’s no strike again!

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1 month 3 weeks ago #776597 by Muhtiman
Muhtiman on topic Black Friday for Phumelela
......the posters at SP are really putting the boot in.....:whistle:

My idea of "help from above" is a sniper on the roof
and a higher power is a hell fire missile armed drone.

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1 month 3 weeks ago #776600 by oscar

Muhtiman wrote: ......the posters at SP are really putting the boot in.....:whistle:


And rightly so my mate.. those results are close down stuff.. and they state that 450 lower level workers were laid off if I read correctly.. it’s an absolute utter disgrace a few directors have to explain properly those figures need forensic auditing..
PS I hear there IS a strike at Turffontein right now.. nobody comments at all about it so these guys that know it all are not really that connected into racing

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1 month 3 weeks ago #776601 by BATMAN
BATMAN on topic Black Friday for Phumelela
I wonder if Bernard Kantor has ever walked into a dirty tote,sat down on those hard orange chairs,in a shop where the toilets are out of order and when you place a bet the staff behind the machine don’t know what they are doing. Then compare to a open bet bookmaker who looks after their customers,have a clean outlet,food and drink on offer.
As a CEO he failed in this business
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1 month 3 weeks ago #776603 by oscar

BATMAN wrote: I wonder if Bernard Kantor has ever walked into a dirty tote,sat down on those hard orange chairs,in a shop where the toilets are out of order and when you place a bet the staff behind the machine don’t know what they are doing. Then compare to a open bet bookmaker who looks after their customers,have a clean outlet,food and drink on offer.
As a CEO he failed in this business


Correct they all have failed.. it took 24 months once the leader was gone and confined in the Cape to destroy a century old business .. a full forensic audit is called for but as we know in SA nothing will happen
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