S.Africa's Gold Reef Resorts H1 down 23 pct

JOHANNESBURG, (Reuters)

South African casino group Gold Reef Resorts GDFJ.J reported a 23 percent decline in first-half profit on Thursday, hit by weak consumer demand in Africa's largest economy and remained cautious on its outlook.

Gold Reef said in an advertisement in South Africa's Business Day newspaper that headline earnings per share totalled 39.2 cents for the six months to end-June, compared with 50.9 cents in the same period a year earlier.

The company said in July it expected first-half earnings to fall by 20 to 30 percent. Revenue fell 1.6 percent to 1.07 billion rand ($147 million). South African companies have been hurt by slack consumer demand, even after the country exited a recession last year. Household debt and unemployment remain high, putting a damper on spending.

Gold Reef said economic conditions remain difficult and it does expect consumers to show signs of recovery until the final quarter of 2010. Shares of Gold Reef are down almost 13 percent so far this year, underperforming a 1.1 percent rise in Johannesburg's All-share index .JALSH. Headline EPS is the main measure of earnings in South Africa and excludes certain one-time items.