Wednesday, June 12, 2024

Chobe Holdings anticipates higher profits 

Luxury safari tourism operator, Chobe Holdings Limited, has announced that it has returned to full profitability two years after COVID-19 brought the tourism industry to a standstill.

On Monday, the Botswana Stock Exchange listed group revealed that its profit before tax for the year ended 28 February 2023 will likely to be between 357 – 367 percent (approximately P185 million to P190.2 million) higher than that reported for the comparative period ended 28 February 2022 which amounted to a loss of P51.8 million.

It has been expected that Chobe will report a full profit for the year after stellar performance in the half year results. For the six months period ending August 2022, Chobe’s revenue surged by 377 percent to P234 million, propelled by 235 percent increase in occupancy rates. In that period, Chobe registered P79.8 million in profit after tax, a 467 percent increase from 2021’s interim results. 

“The loosening of travel restrictions associated with COVID-19 towards the end of the previous financial year has led to a significant improvement in the group’s financial performance over the reporting period, with the half-year results matching those achieved during the comparable period immediately pre-pandemic,” said Jonathan Gibson, the group’s chief executive officer, when announcing the interim results. 

He said the financial performance was underpinned by steadily improving occupancies across the group’s wildlife properties. Chobe owns and operates twelve eco-tourism lodges and camps on leased land in northern Botswana and the Caprivi Strip in Namibia with a combined capacity of 317 beds under the brands of Desert and Delta Safaris, Chobe Game Lodge and Ker and Downey Botswana. 

Sedia Riverside Hotel, a 31-room hotel owned by the group operates in close proximity to central Maun. Safari Air, an air charter operator, which provides air transport services to the group’s camps and lodges. North West Air Proprietary Limited, an air maintenance operation, which provides maintenance services to the group’s aircraft as well as third parties. Desert and Delta Safaris Limited, another wholly owned subsidiary operating in South Africa, provides reservation services to the group.

Gibson said bookings for the remainder of the financial year remained robust with the subsequent financial year showing similar resilience despite some uncertainties. 

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