RTG reports US$214 000 H118 earnings

Rainbow Tourism Group Ltd (RTG) reported net earnings of US$214 000 in the half year to June 2018 (H118) from a loss of US$290 000 in H117.

Melody Chikono

Earnings per share rose to 0,009 from 0,016 loss in H117.

Revenue grew to US$13,7 million from US$11,6 million in H117 while the two Harare hotels registered a 42% revenue increase to US$6,4 million from US$4,5 million in H117.

RTG chairperson Sijabuliso Biyam said this is evidence of opening up of the travel economy that sustained recovery for its city properties. Foreign revenues continued on an upward trend, registering 24% growth to US$4,7 million from US$3,8 million, constituting a 33% total contribution to total revenue.

“This growth in foreign revenue contributions is encouraging as we continue to grow our share of the US$ 1,2 trillion global tourism industry. The company’s focus on digital commerce has driven revenue from e commerce platforms which have grown by 49%,” he said.

Gross margins improved to 67% from 65% recorded in 27% notwithstanding price distortions stemming primarily from foreign currency shortages.

Earnings before interest, tax and depreciation and amortisation (Ebitda) margin for the period closed at US$2,2 million (16%) compared to US$1,1 million (9%) in 2017, a 11% growth.

The growth in Ebitda is in response to the growth in revenue as well as various cost reduction measures that RTG implemented during the period.

E-commerce revenues increased 49% to US$836 000 from US$562 000 in 2017 while occupancy levels rose 6% to 56% from 53% in 2017.