Two of Botswana’s tourism blue-chip companies are expecting bumper half-year financial results, beating concerns that the sector is still trapped in a recession hangover.
This week, both Chobe Holdings and Wilderness Safari informed the market that profits for the respective interim results to August 2014 would be higher when compared to the same period last year. For the six month period to August last year, Chobe made a profit of $3, 4 million. In the same period, Wildness Safari made a profit of $ 5, 5 million.
The board of directors of Chobe, who issued the statement, did not disclose the profit margins or the reasons for the rise in profits when compared to 2013. Chobe operates high-end lodges and safaris mostly in the northern part of the country. In the previous financial results, the Botswana Stock Exchange (BSE) quoted company indicated that investments made on its fleet of aircraft would boost revenue and services rendered to clients.
The acquisition of Moremi Safari is also likely to have boosted the company’s revenue streams. On other news, the company is yet to announce the new chairman following the passing on of Justice Julian Nganunu a few months ago. Directors of the company have also notified shareholders that they must exercise caution when dealing with its securities until results are announced. Competitor Wilderness Safari is also waiting for better results. Company Secretary Sidney Mganga is silent on factors for the improved results.
The results will be released later this month. “Full details on the factors giving rise to this improvement will be given in the announcement,” said Mganga. Wilderness Safari, which has a market capitalisation of nearly P1 billion, has presence in several Southern African countries including Botswana. While Wilderness Safari and Chobe are confident on their interim results, latest data shows that the total sector’s output to national economy in the second quarter of the year was stagnant at P5, 2 billion when compared to prior period. The tourism sector also includes hotels, trade and restaurants. The local tourism sector depends heavily on international tourists.