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Chobe Holdings profits up 17 %

Publishing Date : 20 November, 2017


Chobe Holdings limited one of Botswana’s premier tourism and hospitality companies reported positive results for their half year financial period ended 31st August 2017.

According to the financial report released by the Botswana Stock Exchange(BSE) listed tourism entity the occupancy level on the company‘s hospitality operation, high profile Chobe Game Lodge  increased by 7 % compared to the 2016 half period. This is, according to the report, a satisfactory performance because of continued uncertainties in the world economy and reduced capacity due to ongoing improvements and refurbishments at the lodge which is located at the prestigious Chobe National Park.

Chobe Holdings also registered 11% increase in its 6 months revenue, a performance which the reports attribute to increase in bed nights sold. However the revenue was negatively affected by the appreciation of the pula against the American Dollar and figures were counted by increase in achieved bed rates in USD terms.

The company’s financial highlights indicate that operational costs went up by 11 % due to increased volume of business and current inflation levels. Under the period reviewed Chobe Holdings also spent over10 million pula sourced from the generated cash flows on improving and upgrading existing equipment, facilities, buildings and purchase of additional instruments and service tools and equipments.

The financial report also reveals that the Group which operates amongst others Safari Air, Desert & Delta Safaris invested over 6 million pula to acquire a 22 % stake in an aquaculture entity doing business in Kasane called Golden Wrap (Pty) Ltd. 
Chobe Holdings observes that the Southern African tourism and hospitality industry remains bullish and the trend is expected to continue in the medium term.

“The company board of directors and executive management continues to put necessary strategies and management undertakings to ensure the Group is well positioned and continues to leverage form the positive market conditions,” reads the report. J M Gibson who is Chief Executive  & Deputy Chairman of the  BSE listed Group underscores in the report that majority of his company’s clientele come from the northern hemisphere.

“Political uncertainties and civil unrests in those regions if exacerbated could result in a significant decline of our business,” he observed. Gibson also added that the group’s cash position provides it with the leverage to take advantage of expansion opportunities that may arise hence in acquisition of new or existing entities within the trading space of the multibillion pula tourism & hospitality sector.

Chobe Holdings Limited owns and operates, through its wholly owned subsidiaries, eleven eco-tourism lodges and camps on leased land in Northern Botswana and the Caprivi Strip in Namibia with a combined capacity of 314 beds under the brands Desert & Delta Safaris and Ker & Downey Botswana. Safari Air, a wholly owned air charter operator, provides air transport services to the group's camps and lodges.

Desert and Delta Safaris (SA) (Pty) Ltd, another wholly owned subsidiary operating in South Africa, provides reservation services to the group. The company got incorporated in Botswana I 1983 and listed on the Botswana Stock Exchange in September 29th 1999.



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