RTG records a slight increase of revenue due to COVID-19

Leading country’s hospitality management company, Rainbow Towers Group (RTG) recorded a slight 3% increase in revenue in the third quarter.

It was recorded for five months from January to March 2020 for refurbishment and from April to May  2020 due to COVID-19 lockdown restrictions.

In a statement, the Group’s Company Secretary Napoleon Mtukwa said the business closed 9 months of the year with a positive working capital position, a refurbished five-star hotel, and repaid its debenture three years ahead of schedule.

“During the 9 months to September 2020, the Group’s inflation-adjusted revenues closed at ZW$586 million.

“The EBITDA margin for the period under review closed at 35% margin, which is 3 percentage points above the prior year,” he said.

Mtukwa said that the group’s cumulative occupancy however declined to 22% from 47% recorded in the prior year due to Covid-19 lockdown restrictions.

“The temporary closure of the Rainbow Towers Hotel and Conference Centre (which is 40% of the business) for refurbishment during the first three months of the year, also contributed to the decline in occupancy,” he added.

During the quarter, the Gateway Stream was named the overall winner in the innovation and technology category by prestigious Zimbabwe.

“The Group is expanding the scope of the Gateway Stream platform with the launch of Gateway Stream Music in December 2020 which will further enhance the Group’s revenue generation efforts, “Mtukwa said.

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