Published: 21 August 2013

Rainbow Tourism Group's growth strategy, which includes cost reduction and boosting of revenue, has begun paying dividends with the group achieving a 4 percent growth in revenue to $13,2 million during the half year to June 30, 2013.

The growth in revenue was complemented by a reduction in operating costs by $1,6 million resulting in exceptional Earnings Before Interest Depreciation Taxes and Amortisation margin of 12 percent.

EBIDTA grew by a massive 982 percent to $1,6 million from a meagre $152 000 due to cost reduction measures that were implemented from November last year that addressed core cost impact items which will see a sustained efficient system in future.

As a result the group moved into the black posting a profit after tax of $105 000 from a loss position of $3,2 million during the same period last year. Apart from reducing costs the group's occupancy levels were up 10 percent from 39 percent during the prior year to 43 percent during the period under review.

Looking ahead group chief executive, Mr Tendai Madziwanyika said he was confident that RTG would be able to deliver on its intended profit target by December 2013.

"We are optimistic of an improved operating environment conducive for tourism," he said.

He added that the positive performance RTG is registering is only the awakening of the country's hospitality giant.
- herald

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