Sun International income ticks up 11.6% in H1
Sun International praised “exceptional growth” in its resorts and hotels segment, reporting an income rise of 26.9% to ZAR1.42bn. But it was the operator’s nine urban casinos that generated the most income, totalling at ZAR3.27bn, up by 4.2%.
Of the urban casinos, the casino income made up 91.8% of the total, rising by 2.2% to ZAR3.00bn.
The casino operator said its resorts and hotels segment had experienced “strong recovery” during the six months, referring to the effects of the Covid-19 pandemic seen since 2020.
“We continue to experience a strong recovery in both international and local business in the resorts and hotels segment of the group,” said the operator. “Domestic leisure, conferencing and sports and events revenues continue to grow while international leisure business recovered strongly in the review period.”
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) for the period was ZAR1.57bn, 5.6% higher than in H1 2022.
Segmental results
Of Sun International’s urban casinos, GrandWest contributed the highest income at ZAR891m. Time Square generated ZAR724m, while Sibaya made up ZAR634m.
Alongside the urban casinos and resorts and hotels income, Sun International’s Sun Slots slot machine contributed income of ZAR717m. Income from SunBet, its sportsbook brand, was ZAR298m, a 138.3% increase year-on-year.
Income from management and corporate office was ZAR2m, down by 60.0%.
The total income from South Africa alone was up by 11.5% to ZAR5.71bn. For Nigeria and other, income was ZAR72m, marking an increase of 20.0%.
Sun International also reported growth in its unique active players, which were up by 702.8%. First time depositors grew by 469.2%.
Half-year breakdown
Net gaming win for the six months was ZAR4.51bn, ticking up by 6.5%. The revenue – which includes other income – was ZAR1.26bn for the six months.
Turning to operating costs, the highest of the period was employee costs at ZAR1.17bn, up by 13.8%. Levies and VAT on casino income was ZAR1.06bn, while consumables and services generated costs of ZAR651m.
The total operating costs brought the operating profit to ZAR1.13bn, which marked growth of 9.2%. Following other costs – including ZAR310m in finance expense – as well as a gain of ZAR11m from finance income, the profit before tax was ZAR722m for the half-year, up by 21.3%.
After considering ZAR237m in taxation, the overall profit for the half-year was ZAR485m, up by 41.0%.
Looking ahead to the second half of the year, Sun International said it anticipates continuous improvement in its operations despite “economic conditions in South Africa and the environment in which we operate” remaining challenging.
“With the strong momentum that we have achieved and having the right leadership in place, we will ensure that our strategy continues to deliver the required results.”