RTG declares US$1m 2024 interim dividend

Zimbabwe Stock Exchange (ZSE) listed hospitality group, Rainbow Tourism Group (RTG), has declared a US$1 million dividend for the half year to June 30, 2024, following a stellar performance during the interim period.

In a statement, RTG chairman Mr Douglas Hoto said despite the first quarter being the traditional low season for the industry as well as the prevailing challenging business environment, key performance indicators for the period were all positive.

“RTG has declared an interim dividend in therecently published H1 2024 financial results.

“On behalf of the board of directors, I am pleased to inform shareholders that the group has declared an interim dividend of US$1 million of which US$400 000 will be paid in United States dollars and the balance in ZiG.

“The dividend will be payable on October 31, 2024,” he said.

Over the past five years, including during the height of the Covid-19 pandemic, the hospitality group has consistently declared a dividend for its shareholders.

RTG posted strong performance in the first half of 2024 despite the traditional low season and the prevailing challenging business environment.

During the period under review, the group’s key performance indicators such as Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) was up 141 percent to close at US$1,4 million while revenue grew by 116 percent to US$18 million.

“The group recorded an increase in volumes during the first six months to June 30, 2024, achieving an occupancy of 52 percent, a 13 percent growth from the 46 percent recorded in June 2023.

“This growth into RTG hotels has been driven by the return of international tourists, which is now well ahead of pre-Covid-19 levels,” said Mr Hoto.

“Food and beverage, and conferencing activities also posted significant growth, with volumes increasing by 35 percent in the review period.

“As international tourism returns to normal in the Victoria Falls market, the growth trajectory is expected to continue into the industry’s peak season which traditionally lies in the second half of the year,”he said.

RTG revenue for the period totalled US$18 million, a 116percent improvement from US$8,3 million posted in 2023. The group’s margins have remained strong, improving to67 percent from the 64 percent posted last year.

The above was attributed to the growth in business volumes during the half-year period. In the six months to June 30, 2024, RTG completed the refurbishment of the Rainbow Towers Hotel and Conference Centre.

The works included the conversion of 24 standard rooms into six luxury ‘diplomatic’ suites, the refashioning of the remaining 48 standard rooms and the installation of two guest elevators, bringing the total to four Kone brand high-tech elevators with key card floor access control.

The Harare International Convention Centre was refurbished for the first time since it was built.

“All the seats were replaced with new seats and new carpets were installed.

All the seats now have charging ports — 3,2 – pin and C type to ensure a seamless conferencing experience” he said.

Group chief executive Mr Tendai Madziwanyika said: “This growth was driven by a 14 percent increase in rooms sold and a 35 percent rise in banqueting and conferencing activities.

“With international tourism rebounding, especially in Victoria Falls, the group expects continued foreign business growth as the peak season approaches.”

As part of its sustainable business practices, the group planted 6 050 trees in schools in Kadoma where it operates the Kadoma Hotel and Conference Centre.

Through the programme, RTG targets to attain a net zero position for its direct carbon emissions.

“Sustainability is at the core of the group’s strategy wherein it seeks to apply this philosophy across its business operations.

“These include strategies to address the group’s impact on the environment with a focus on the sustainable management of energy, water, and the environment. The company’s sustainability efforts are founded on the United Nations Sustainable Development Goals (SDGs) where it focuses on SDG 1, 2 and 13.

“These SDGs seek to eradicate poverty, hunger and adopt a responsible approach tomatters around climate change impact,” he said. During thefirst half, RTG launched the pilot afforestation project where it planted 6 050 trees in 10 primary schools in Kadoma.

At maturity,the trees will offset an estimated 133 100 kilogramme of carbon dioxide.

The company aims to achieve a net zero position for its direct minimum carbon emissions by2027.-herald