Sun International is making strides to enhance its SunBet offering, following a strong performance in the first half of the year. The company reported that revenue from SunBet soared by 35.5% year-on-year to R1.18 billion ($73.6 million), significantly exceeding the 19% growth of South Africa’s online market in that same period.
This online growth contributed to a 7.4% increase in Sun International's group income, which reached R6.58 billion during the first half of the year, excluding the Table Bay Hotel (TBH), managed under an agreement with IHG.
At the Capital Markets Day event in March, Sun International set an ambitious goal to double SunBet’s market share in South Africa from its current 4.5%. Although the company did not disclose updates on its market share progress, CEO Bengtsson emphasized on the post-H1 earnings call that product development is essential for the next phase of expansion. Additionally, he suggested that there are profitable opportunities beyond South Africa’s borders.
Bengtsson remarked that the company sees “plenty of inorganic opportunities” and expressed openness to consolidating minority stakes if beneficial prospects arise. He pointed out, "In terms of the SunBet business, there might be opportunities to consolidate locally, but there might also be opportunities outside of South Africa. We are looking at all of it, but we have a very high bar for what we deem to be good investments."
SunBet, which launched in Namibia in May with the support of Bede Gaming, is also using this platform in South Africa and Botswana, the latter of which it entered in 2024. Following discussions at the Capital Markets Day, Sun International disclosed that it is evaluating expansion possibilities in Zambia, Kenya, and Ghana.
The company recently introduced a new user interface for SunBet in both South Africa and Botswana, with more developments planned for the remainder of the year. Bengtsson noted, “We had a very strong World Cup, which shows that our sportsbook can handle and can have the capacity to handle larger volumes. We’re very encouraged with the trajectory of that, but we’re still not where we want to be.”
In terms of market dynamics, SunBet has a casino to sportsbook revenue split of about 90% to 10%, which indicates that Sun International is currently underrepresented in the sportsbook market. Bengtsson sees this as an opportunity, stating that the overall market likely has a sportsbook share of around 35%-40%. He acknowledged the potential for improvement, especially capitalizing on momentum from the World Cup, which served as a significant customer acquisition platform.
Despite noting a drop in sportsbook activity during July due to the conclusion of most football leagues, he assured that underlying momentum is improving and will persist throughout the year.
Significantly, Sun International reported a resurgence in its land-based casino sector for the first time in three years, with revenue growing by 1.5% to R3.42 billion, while its South African market share expanded by 2.3% to 49%. Although gross profit from land-based operations decreased by 0.7% to R2 billion, the company is optimistic that ongoing investments will strengthen operational leverage as the casino business evolves.
Bengtsson stated, “The sustainability in the operational improvements and in our market share gains are clearly there,” highlighting his ambition to reshape the land-based business trajectory. He emphasized the synergy between Sun International’s land-based and online operations, suggesting that the integration could enable the company to capture more of its existing customers’ online engagement. "We look increasingly at our business as one customer ecosystem or one customer platform," he concluded.
