Harare - Listed Hospitality Company, Rainbow Tourism Group (RTG) revenue for the six months ended June 30, 2018 grew by 18 percent to $13.7 million from $11.6 million recorded in the prior year attributed to a successful low season strategy, growth in conferencing business as well as revenue from foreign currency generating channels including e-commerce platforms.

In a statement accompanying the Group’s financial results, Chairman Sijabuliso Biyam said all RTG hotels registered growth in revenue during the first half of the year compared to the same period in 2017.

“The two Harare hotels registered a 42 percent growth in revenue to $6.4 million from $4.5 million in 2017.

“This is evidence of the opening up of the economy to business travel. It therefore gives us optimism for sustained recovery for our city properties.”

In the period under review, foreign revenues continued on an upward trajectory, registering a 24 percent growth to $4.7 million from $3.8 million, constituting a contribution of 33 percent of total revenue.

“This growth in foreign revenue contribution is encouraging as we continue to grow our share of the $1.2 trillion global tourism industry. The Company’s focus on digital commerce has driven revenue from e-commerce platforms which has grown by 49 percent.

“Again, the company is well positioned to benefit from the global migration towards internet-based business.”

During the period under review, gross margins improved to 67 percent from 65 percent the prior year.

He said this was notwithstanding price distortions as driven primarily by foreign currency shortages.

The Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) margin for the period closed at $2.2 million (16 percent) compared to $1.1 million (9percent) recorded in 2017 which is a growth of 110 percent.

“The growth in EBITDA is in response to the growth in revenue as well as various cost reduction measures that were implemented during the period,” said Biyam.

Operating expenses for the period under review increased by 9 percent from $6.7 million in 2017 to $7.3 million in 2018.

Biyam said the increase in costs was mainly due to increased business activity particularly in conferencing for city hotels which had the impact of increased variable cost such as labour and electricity.

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