Phumelela Numbers Are Now Out

Phumelela released their 'numbers' this morning. Interestingly they have maintained their dividend at the same level as last year despite what appears to be an overall decline in South African racing operations. That should have owners choking on their cornflakes.

Whatever your opinion is of them you have to ask the following question : If they are supposedly running a business ( as opposed to a glorified country club )where their core operation has been dodgy for quite some time; what are they supposed to do?

Well - they appear to be looking to their international operations to expunge the red ink. I am also guessing that their sports betting offerings are becoming increasingly important.

If you take a forward view ( and isn't this what investing is all about ? ) then SA racing may ( I repeat : MAY ) become a declining part of their operation as the years tick by. Certainly the signs have been there for all to see in recent times.

If memory serves me correctly their listing price was about 40c in the late 1990's. For shareholders this has been a great ride ( no pun intended ) as you are recovering the original purchase price ANNUALLY in the form of dividends.

Would think that's it's fair to say from a financial aspect if they can meet the bottom line with increase in sports and overseas racing why bother to keep local tracks considering the upkeep maintenance etc for low attendances
I always try to promote racing but have probably been fighting a losing battle for some time
Sad but a reality

This is like theft,the punters that are now betting sports with Phum/bettingworld etc have been poached because of a shit product(horse racing)