Sun International is focused on enhancing its SunBet product following its impressive first-half earnings report for the overall online sector. The company announced that revenue from SunBet jumped 35.5% year-on-year, reaching R1.18 billion ($73.6 million) in H1, significantly surpassing South Africa's online market growth rate of 19% during the same timeframe.
This online expansion contributed to a 7.4% increase in Sun International's total group income, which climbed to R6.58 billion in H1, excluding figures from the Table Bay Hotel, currently managed under a contract with IHG.
During its Capital Markets Day in March, Sun International expressed ambitions to double SunBet’s market share in South Africa, which currently stands at 4.5%. Although the company did not provide updates on its market position during the recent earnings call, CEO Bengtsson emphasized that advancing the product is crucial for future expansion.
Bengtsson hinted at potential growth opportunities both within South Africa and internationally. “We see plenty of inorganic opportunities,” he noted. “We have stated this before. Our focus includes the consolidation of minority interests where viable.” He implied that while consolidation chances may arise locally, the company is also evaluating options abroad.
In May, SunBet launched its operations in Namibia, employing the Bede Gaming platform, which it also uses in South Africa and Botswana, where it entered in 2024. The company is currently exploring expansion efforts in Zambia, Kenya, and Ghana.
Further product development is on the horizon, as Sun International recently unveiled a new user interface for SunBet in South Africa and Botswana. Bengtsson remarked, "We had a very strong World Cup, demonstrating our sportsbook's ability to manage higher volumes. While we have made significant progress, we still have further goals to achieve." He assured stakeholders of ongoing enhancements planned for the remainder of the year.
Bengtsson noted that SunBet's revenue distribution currently skews towards casino games, making up about 90% of the split. He described this as an opportunity, adding, "The market is likely around 35%-40% sportsbook, so we have a gap to close in enhancing our sports product and operational efficiency."
The momentum generated by the World Cup continued into the latter half of the year. "The World Cup was mainly an opportunity for customer acquisition and resulted in favorable turnover for us," he explained. However, he acknowledged a slowdown in sportsbook activities during July due to the break in football leagues, while remaining optimistic about sustained improvement moving forward.
In addition to SunBet's success, Sun International experienced a return to growth in its land-based casino sector for the first time in three years, with revenue rising 1.5% to R3.42 billion. The company's market share in South Africa increased by 2.3% to 49%, although gross profit dipped slightly by 0.7% to R2 billion due to elevated investments in the segment.
Bengtsson indicated that the benefits from these investments are expected to lead to improved operating leverage as the casino sector expands. "The operational enhancements and market share gains we are witnessing are real and happening now. Our goal has always been to alter the trajectory of our land-based business, and we believe we have achieved that."
He pointed out the synergies between Sun International’s online and land-based operations, emphasizing the potential for capturing more online activity from existing customers. "We view our business increasingly as a single ecosystem for our customers,” he said. “SunBet would not be in its current position without our land-based operations, and vice versa. While many of our land-based customers are active online, not all are engaging with SunBet, which we see as a key opportunity for growth.
