Rainbow Tourism Group Limited (RTG) received a clean audit opinion for its 2025 financial statements, with independent auditors BDO Zimbabwe concluding that the company’s financial position, performance and cash flows were fairly presented in accordance with IFRS Accounting Standards.
In its independent auditor’s report, BDO said the consolidated financial statements presented fairly, in all material respects, RTG’s financial position as at December 31, 2025, as well as its financial performance and cash flows for the year. The audit was conducted in accordance with International Standards on Auditing.
The clean audit came as the hospitality group recorded a 13% increase in revenue to US$50.3 million, up from US$44.4 million in 2024.
Foreign-currency revenue increased by 28% to US$24.1 million, accounting for 48% of total group revenue, compared with 43% the previous year. Occupancy also improved to 57% from 54%, while average daily rate rose to US$109 from US$102 and revenue per available room increased to US$62 from US$55.
However, earnings before interest, tax, depreciation and amortisation (EBITDA) declined by 20% to US$7.8 million from US$9.7 million, largely due to expansion-related costs, including acquisition interest, additional depreciation and legal and advisory costs linked to the Cape Town and Montclair transactions.
Profit before tax stood at US$4.2 million, down from US$7.9 million in 2024, while profit for the year fell to US$3.3 million from US$5.4 million.
The Group said adjusted profit before tax, excluding once-off costs, reached US$5.4 million, representing a 54% increase from the previous year and providing an indication of the underlying performance of the business.
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RTG invested US$15.5 million in capital expenditure during the year, including US$13.4 million on three acquisitions and US$2.1 million on refurbishments. The acquisitions included Montclair Resort and Conference in Nyanga, Batoka Safaris and MSK House in Cape Town.
The Group’s total assets increased by 28% to US$82.7 million from US$64.5 million in 2024, while gearing rose from 8% to 24% following the use of debt facilities to finance the Montclair and Cape Town acquisitions.
Commenting on the performance, Group Chief Executive Tendai Madziwanyika said:
"Despite persistent pressure from the macro-economic environment, the Group’s revenue increased by 13% to US$50.3 million, while the gross profit margin improved by four percentage points to 74%. On Capex, we deployed US$15.5 million across three value-accretive acquisitions and the targeted refurbishment of our existing portfolio."
The company also maintained dividend payments to shareholders during the year.
The Board declared a second and final dividend of US$1.7 million, comprising US$650,000 to be paid in foreign currency and the balance of US$1.05 million in local currency. Together with the interim dividend of US$1.1 million declared in September 2025, RTG’s total dividend for the financial year amounted to US$2.8 million.
RTG said its 2026 performance is expected to be supported by increased domestic, regional and international tourism, conferencing activity and contributions from businesses acquired during 2025.
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