Sun International has reported a significant increase in profit for the first half of the financial year, largely attributed to the impressive performance of its online gaming platform, Sunbet, alongside effective cost management strategies.
For the six months ending in June, headline earnings per share rose by 60.5% to 305 cents. Excluding the Table Bay Hotel, the group achieved a 6.7% increase in continuing income, reaching R6.1 billion. Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) also saw growth, rising by 1.1% to R1.6 billion, with a margin of 25.4%. Sunbet alone contributed R874 million to the earnings, marking a remarkable 70.7% increase.
An interim dividend of 172 cents per share was announced, reflecting a 6.8% rise and aligning with the company’s policy of distributing 75% of adjusted headline earnings per share.
The group successfully converted 62.4% of R1.7 billion in cash generated from operations into free cash, reducing net debt to R5 billion and lowering interest costs by 15%. Revenue from resorts and hotels increased by 4.3%, buoyed by a recovery in conferencing and events, although urban casino income experienced a slight decline of 1.4%.
Sun International remains focused on growth through the expansion of Sun Slots, digital gaming initiatives, and selective acquisitions, while maintaining tight control over debt and dividends. Following a mutual decision not to pursue the Peermont acquisition, the group now benefits from a robust balance sheet that allows for strategic capital deployment.
The management expressed confidence in the group’s sustainable growth trajectory, supported by improvements in urban casinos, strong digital conversion momentum for Sunbet, and selective expansion efforts in Sun Slots. Additionally, the usual seasonal rebound in the resorts and hotels sector is expected to contribute positively to future performance.