quality assets
Grandslots
GPI’s effective stake: 100%
GPI previously owned an effective stake of 25.1% in Grandslots, the trading brand of Thuo WC, through its 100% held subsidiary, GPI Slots (Pty) Ltd. With the completion of the acquisition of our LPM interest, Grandslots became a 100% held subsidiary of GPI Slots.
Thuo WC is a company built on honesty, integrity and a rich tradition of upliftment in the communities in which it operates through corporate social initiatives. The introduction of limited payout machines (LPM) in the Western Cape represents the culmination of government's gradual and cautious approach to LPMs and the socio-economic impact that such machines can have on poorer communities. The Western Cape Gambling Board's sanctioning of such introduction was only forthcoming after it conducted extensive research into this industry, in line with its responsible gambling initiatives.
The resilience of the LPM market was certainly a highlight during the 2010 year and it was pleasing to witness Grandslots growing its gross gaming revenues in a very difficult recessionary period by 4.4%, against the 3.7% decline experienced by GrandWest in the same province. Last year Grandslots produced R191 million in gross gaming revenue and a net margin after gaming levies, venue revenue share (40%) and other variable costs of R81 million. It produced a net profit after tax of R20 million, a 10% improvement on the previous year. There are currently only two operators in the Western Cape and Grandslots with a fair market share of 50% of the licensed machines enjoys more than half the actual machines rolled out and overall revenue achieved in the province.