“Sun International reports exceptional growth in its resorts and hotels segment, with a 26.9% increase in income to ZAR1.42bn. However, the operator’s urban casinos remain the top income generators, totaling ZAR3.27bn, a 4.2% rise. Casino income alone contributes 91.8% of the total, reaching ZAR3.00bn with a 2.2% growth. The group attributes the strong recovery in the resorts and hotels segment to the rebound from the Covid-19 pandemic, both in domestic and international leisure, conferencing, sports, and events revenues.
Adjusted EBITDA for the period is ZAR1.57bn, which is 5.6% higher than H1 2022. Among Sun International’s urban casinos, GrandWest leads in income with ZAR891m, followed by Time Square with ZAR724m, and Sibaya with ZAR634m. Sun Slots slot machine adds ZAR717m to the income, while SunBet, the sportsbook brand, experiences a 138.3% increase to reach ZAR298m. Income from management and corporate office falls to ZAR2m, a 60.0% decrease.
Income from South Africa shows an 11.5% growth, totaling ZAR5.71bn. Nigeria and other regions contribute ZAR72m, a 20.0% increase. Sun International also observes a substantial increase in active players, up by 702.8%, and first-time depositors, up by 469.2%.
During the half-year period, the net gaming win amounts to ZAR4.51bn, a 6.5% rise. The revenue, including other income, is ZAR1.26bn. Employee costs reach ZAR1.17bn, a 13.8% increase, while levies and VAT on casino income amount to ZAR1.06bn. Consumables and services generate costs of ZAR651m. Operating profit experiences a 9.2% growth to reach ZAR1.13bn.
After considering other costs, finance expenses of ZAR310m, and a gain of ZAR11m from finance income, the profit before tax for the half-year amounts to ZAR722m, a 21.3% increase. After taxation of ZAR237m, the overall profit for the half-year is ZAR485m, a 41.0% rise.
Looking ahead to the second half of the year, Sun International expects continuous improvement in operations despite challenging economic conditions in South Africa and the operating environment. The company’s strong momentum and effective leadership will drive the strategy to deliver the desired results.”
