Sun International is focused on enhancing its SunBet platform after it generated impressive half-year earnings for the broader online business. The company reported that revenue from SunBet surged by 35.5% year-over-year, reaching R1.18 billion ($73.6 million) for the first half of the year, significantly outpacing South Africa’s online market growth of 19% during the same timeframe.
Excluding the Table Bay Hotel, which is managed under an agreement with IHG, Sun International's overall group income increased by 7.4%, totaling R6.58 billion in the first half of 2023. At the recent Capital Markets Day held in March, Sun International articulated its objective of doubling SunBet’s market share in South Africa from its current 4.5%.
During Sun International’s earnings call on Monday, CEO Bengtsson reiterated the importance of product improvement for the company’s next expansion phase, while also suggesting potential for growth beyond South Africa. He mentioned, “We have said that many times before. I think it consists of multiple aspects. We are still open to and keen on consolidating minorities if there is opportunity that is being presented.” Bengtsson continued, indicating a readiness to explore both local and international consolidation opportunities in the SunBet sector.
SunBet recently launched in Namibia in May, utilizing the platform provided by Bede Gaming. It previously entered Botswana in 2024, also using Bede Gaming’s technology. Sun International is evaluating prospects for expansion in Zambia, Kenya, and Ghana.
To enhance user experience, the company has rolled out a new user interface for SunBet in South Africa and Botswana. Bengtsson conveyed optimism regarding ongoing product development, noting, “We had a very strong World Cup, which shows that our sportsbook can handle larger volumes. We’re very encouraged with the trajectory of that, but we’re still not where we want to be.” He assured stakeholders that substantial improvements are in the pipeline for the rest of the year.
Currently, the revenue split between casino and sports betting for SunBet is approximately 90% to 10% in favor of casinos, signaling an opportunity for growth as Bengtsson indicated that the market is estimated to be around 35%-40% for sportsbook activities. “That is the delta we have to close by delivering a better product and better operational intensity in our sports business,” he stated.
Post-World Cup momentum has carried into the second half of the year, with Bengtsson explaining its significance as a customer acquisition opportunity. While noting a drop in sportsbook activity during the off-season for many football leagues, he is optimistic about enduring improvement in this area moving forward.
In addition to SunBet’s achievements, Sun International witnessed a return to growth in its land-based casino segment for the first time in three years. Revenue from land-based casinos rose by 1.5% to R3.42 billion, while the company’s market share in South Africa increased by 2.3% to 49%. While gross profit from land-based operations dipped slightly by 0.7% to R2 billion, Bengtsson believes this is due to the company's recent investments, which are expected to yield better operating leverage.
“We look increasingly at our business as one customer ecosystem or one customer platform,” he added, emphasizing the interconnectedness of Sun International’s online and land-based operations. “I keep saying that SunBet probably wouldn’t be where it is today without a land-based business, and a land-based business probably wouldn’t be where it is today without SunBet.” With many of their land-based customers now playing online, there is an opportunity for more of them to engage with SunBet directly.
