Chobe struggles to turn the corner
... despite lifting of travel restrictions
Despite improved tourism activities following the lifting of travel restrictions across the globe towards the end of last year, Chobe’s financials have remained in the woods.
The Botswana Stock Exchange ( BSE) listed tourism and hospitality company this week announced that it anticipates losses from results for the year ended 28 February 2022.
“The Board would like to announce that the Group’s loss before tax for the year ended 28 February 2022, will likely be between 37 to 42 percent, approximately P 31.6 million to P 35.9 million lower than that reported for the comparative period ended 28 February 2021, which amounted to a loss of P 85.4 million,” said the company in a statement to shareholders this week. Authorities from the company have indicated that the Group’s audited consolidated financial results for the year ended 28 February 2022 will be published before 31 May 2022.
Though the hospitality and tourism company is still in the red, it has emerged among the top three traded companies on the Botswana Stock Exchange ( BSE) during the period first quarter of the year.
With trading activities for the first quarter of the year shooting up significantly, compared to same period last year, Chobe’s traded shares reached P49.9 million during the first quarter.
The bourse recorded the highest turnover in a single day of P186.8 million which occurred on 23rd March 2022, attributed to the bourse continued technological innovation and capabilities.
Meanwhile, Kgori Capital Quarterly Insights have indicated that the hospitality remains in the doldrums, operating well below breakeven capacity.
“We have noted the uptick in advance bookings a positive indicator that the reopening of the sector is gaining traction, albeit from a very low base.
Despite the green shoots, the uncertainties facing the industry remain,” said Portfolio Manager at Kgori Capital, Tshegofatso Tlhong.
She said the road to recovery remains uneven and punctuated with high risk. Over the past two years most border posts were closed at the beginning of April 2020, with only a few opened to facilitate essential travel during 2020.
With the pandemic impacting the world towards the end of 2019, gaining a foothold in 2020, the travel industry is still reeling from the impacts of travel restrictions.