RTG records strong financial performance

HOSPITALITY company, the Rainbow Tourism Group (RTG), has recorded a strong operational and financial performance across its hotels, resorts, and tourism businesses, despite global economic headwinds. T he RTG is a dominant player in the tourism industry specialising in hotel and conference services, tour operations and operates the largest tourism online booking platform in Zimbabwe, the Gateway Stream App. It has attributed the strong performance to quick adaptability. T he company’s financial status has been healthy, recording 126% in revenue growth in 2023, driven by its conferencing business during the second half of 2023. According to its annual report, revenue per available room (RevPar) realised a 176% increase to US$58, while earnings before interest, depreciation, and amortisation (EBITDA) shot up by 288%. After-tax profit increased by 519%. Room occupancy increased from 44% in 2023 to 60% in 2024, outperforming industry benchmarks, while the company’s market share increased from 28% to 30% within the same peRTG records strong f inancial performance riod. T he company’s acid test ratio for 2023 was 0.70 and 0.72 in 2024, while the share of invoice was 33% in 2023 and 39% in 2024. T he acid-test ratio, also known as the quick ratio, is a financial metric used to assess a company’s short-term liquidity. It also measures a company’s ability to pay off short-term debts with its most liquid assets. T he group invested US$21 million in product refurbishment since 2018. T he company also distributed a portion of its profit to shareholders, with the final dividend for the full year 2023, totaling US$260 000 and ZIG4.1 million, which is equivalent to US$250 000. Since 2018, the company has declared cumulative dividends of US$6 million, in addition to capital expenditures of US$21 million over the same period. “We are pleased to report that Rainbow Tourism Group has sustained its positive trajectory, delivering solid results in the midst of a turbulent economic landscape,” said Tendai Madziwanyika, the RTG chief executive officer. “Our ability to adapt quickly, optimise efficiency, and focus on delivering exceptional customer experiences has been key to our success.” T he company has also been making use of e-commerce, with its booking platforms, Booking.com, Expedia, Hotels.com and Site Minder, contributing 18% to its total revenue between January and May 2024. T he Gateway Stream online platform has also been crucial to the company’s f inancial growth, hosting highly successful music concerts. “Africa’s digital economy will accelerate exponential growth springing from the current US$180 billion to US$1.080 trillion by 2050, a 6-times growth. The ‘Redefined’ concert which showcased Zimbabwe’s top music artists Jah Prayzah, Winky D, Feli Nandi sold out 6 500 tickets and the show had 165 000 views on Facebook live,” Madziwanyika said. “Looking ahead, we remain cautiously optimistic about the future. While macro-economic challenges persist, we are confident in our ability to navigate these uncertainties and continue delivering value for our shareholders, partners, and guests,” he said. Apart from the Rainbow Towers Hotel and the Harare International Conference Centre, RTG’s portfolio also includes Victoria Falls Rainbow Hotel, A’Zambezi River Lodge, Bulawayo Rainbow Hotel, Kadoma Hotel and Conference Centre, New Ambassador Hotel and Rainbow Beitbridge Hote

Published

5 months ago

13 Jul 2024

NewsHawks

NATHAN GUMA

The RTG is a dominant player in the tourism industry specialising in hotel and conference services, tour operations and operates the largest tourism online booking platform in Zimbabwe, the Gateway Stream App.

It has attributed the strong performance to quick adaptability.

The company’s financial status has been healthy, recording 126% in revenue growth in 2023, driven by its conferencing business during the second half of 2023.

According to its annual report, revenue per available room (RevPar) realised a 176% increase to US$58, while earnings before interest, depreciation, and amortisation (EBITDA) shot up by 288%.

After-tax profit increased by 519%.

Room occupancy increased from 44% in 2023 to 60% in 2024, outperforming industry benchmarks, while the company’s market share increased from 28% to 30% within the same period.

The company’s acid test ratio for 2023 was 0.70 and 0.72 in 2024, while the share of invoice was 33% in 2023 and 39% in 2024.

Te acid-test ratio, also known as the quick ratio, is a financial metric used to assess a company’s short-term liquidity.

It also measures a company’s ability to pay off short-term debts with its most liquid assets.

The group invested US$21 million in product refurbishment since 2018.

The company also distributed a portion of its profit to shareholders, with the final dividend for the full year 2023, totaling US$260 000 and ZIG4.1 million, which is equivalent to US$250 000.

Since 2018, the company has declared cumulative dividends of US$6 million, in addition to capital expenditures of US$21 million over the same period.

“We are pleased to report that Rainbow Tourism Group has sustained its positive trajectory, delivering solid results in the midst of a turbulent economic landscape,” said Tendai Madziwanyika, the RTG chief executive officer.

“Our ability to adapt quickly, optimise efficiency, and focus on delivering exceptional customer experiences has been key to our success.”

The company has also been making use of e-commerce, with its booking platforms, Booking.com, Expedia, Hotels.com and Site Minder, contributing 18% to its total revenue between January and May 2024.

The Gateway Stream online platform has also been crucial to the company’s f inancial growth, hosting highly successful music concerts.

“Africa’s digital economy will accelerate exponential growth springing from the current US$180 billion to US$1.080 trillion by 2050, a 6-times growth.

The ‘Redefined’ concert which showcased Zimbabwe’s top music artists Jah Prayzah, Winky D, Feli Nandi sold out 6 500 tickets and the show had 165 000 views on Facebook live,” Madziwanyika said.

“Looking ahead, we remain cautiously optimistic about the future. While macro-economic challenges persist, we are confident in our ability to navigate these uncertainties and continue delivering value for our shareholders, partners, and guests,” he said.

Apart from the Rainbow Towers Hotel and the Harare International Conference Centre, RTG’s portfolio also includes Victoria Falls Rainbow Hotel, A’Zambezi River Lodge, Bulawayo Rainbow Hotel, Kadoma Hotel and Conference Centre, New Ambassador Hotel and Rainbow Beitbridge Hotel.