Phumelela Profits

Phumelela released their financials lately - not great but they made a profit, well according to the financials they did. If you dig deeper you'll find other operating income. This is made up in their words of 'inter alia, bookmakers levies, unclaimed dividends, breakages, stable rentals and LPM's.
They break it down a bit further mentioning the LPM income and the bookmaker levies but never mention how much the unpaid dividends came to.
My guess is around R65 million.

Phumelela's total Gross profit was R98 million (65 of which was punters money)

Surely these unpaid dividends should be cashed in and put in to super pools - lile the pick 6 pool on July day or Summer Cup day?
Why should the shareholders be entitled to money that should actually be paid to the end punter? Really?

As for trying to get the exact audited amount - thats tough. trust me I've tried.

Am I alone in thinking this?

Kalvin

They make most out of income that is not managed by them but incidental or "accidental".They really are a bunch of clowns!

I assume that unclaimed dividends includes "rounding down" income,which clearly belongs to punters

Your suggestion of a super pool is interesting.
The biggest shareholder is the Racing Association. Therefore some or most of the unclaimed monies finds its way back into stakes.
And why not become a shareholder in Phum - not only will some of the unclaimed dividends be returned to you but also some of your losing punts..

The 65m figure how do you come to that figure?

Hi Mac,

Well I would not buy into a company who relies on people not collecting refunds or winnings. Nor would I buy a company who complains about bookmakers (I do understand why) but collects R40million (40% of Gross profit) from them.

Hey Hibenia,

Well the figure is R152 million for "other operating income" This is made up of Bookmakers Levies R40mill and Limited Payout machines R11mill. There is R101mill remaining, other incomes also includes breakages (not sure how this is an income), stable rentals and unclaimed dividends. Presuming they make 2 million a month from stable rentals that leaves 77mill and breakages of I'm just guessing here - 1 mill per month that gives us R65 million in unclaimed dividends.


MAC and all punters

Now imagine R5 million in the last Saturdays Pick 6 Pool every month, to start the pool off. Now that would be decent!

Just a thought - Really hoping someone can question the legality of Phumelela's actions. I know the big boys won't like the idea as this would leave Phumelela with no profit and therefore no dividends and it would make all punters happy which would be terrible!

Cheers

Kalvin