Sun International, the owner of Sun City, is seeing substantial growth, particularly in its online gambling division, Sunbet. In 2024, the group reported a 5.1% rise in continuing income, reaching R12.6 billion. This success was largely driven by Sunbet, which saw a remarkable 60.6% increase in its revenue, surpassing the company’s targets. The group’s adjusted EBITDA also grew by 3.0% to R3.5 billion, highlighting a solid performance across its operations.
While the online gambling sector has soared, it has faced growing scrutiny from civil society and political bodies, with concerns about its social impact. In response, Sun International is making significant investments in research and education to promote responsible gambling. This comes amid concerns from groups like Rise Mzansi, who warn of a gambling crisis in South Africa, citing a staggering R1.1 trillion spent on gambling in 2023/24. Despite challenges, Sun International remains committed to managing the rapid rise of online gambling through improved compliance measures.
The group’s other areas, such as its four major urban casinos, showed modest growth, while smaller regional casinos faced difficulties. Sun City’s resorts and hotels performed well, with revenue from rooms and food services increasing by 10.9%. However, Sun Slots experienced a decline in income, dropping by 3.1%. Despite these mixed results, the group’s financial situation is solid, with its debt reduced to R5.2 billion. Sun International declared a total dividend of 398 cents per share, marking a 13.4% increase from the previous year. With a robust balance sheet, the company is well-positioned to continue investing in its operations and delivering value to its shareholders. The outlook for the medium to long term is optimistic, with expectations of a more favourable economic environment, thanks to lower inflation and interest rates.