Sun International has reported a group income growth of 7.4% for the first half of the year, reaching R6.58 billion ($411.9 million), driven primarily by the impressive performance of its online brand, SunBet. This income figure is noted after excluding revenue from the Table Bay Hotel (TBH), which is operated under a management agreement with IHG. Adjusted EBITDA, excluding TBH, rose by 2% to R1.59 billion.
The online segment, particularly SunBet, was a standout performer, with its revenue skyrocketing by 35.5% compared to the previous year, totaling R1.18 billion. Ulrik Bengtsson, CEO of Sun International, emphasized that this surge in SunBet’s revenue was significantly higher than the 19% growth of the South African online market during the same timeframe. The robust growth was attributed to a 32.3% increase in active player days and a 17.5% increase in first-time depositors. Furthermore, the rollout of proprietary in-house technology and a new user interface in South Africa and Botswana bolstered SunBet's performance.
"Growth continues to be driven by existing customers in slots and casino, although we are starting to broaden our offering through our sport business where recent momentum has been building," Bengtsson stated, highlighting the encouraging early signs of success across the platform. Although Sun International did not specify SunBet's current market share in South Africa, the company mentioned plans to double it back in March.
On the land-based casino front, Sun International reported a modest 1.5% growth in revenue, bringing it to R3.42 billion—the first increase in three years. The company’s market share for land-based casinos rose by 2.3% to 49%. This growth has been attributed to significant investments in product development and marketing, as well as an increase in land-based casino GGR by 4.4%. During this period, Sun International launched 876 new slot machines and stadium games.
Bengtsson commented on the growth, attributing it to "strong execution and sound investment decisions." Despite this revenue ascent, gross profit from land-based operations dipped by 0.7% to R2 billion due in part to increased marketing expenditures. Looking ahead, Sun International believes that transitioning land-based gaming to a more digital and experience-oriented model, alongside a low-cost operating framework, will enhance performance and profitability in the long term.
In the hospitality sector, revenue grew by 2.8% to R1.29 billion, despite around R20 million in losses due to war-related cancellations.
As Sun International moves into the second half of the year, it reported a strong start with revenues exceeding guidance expectations between 6% and 8% as of August 31. However, increased capital expenditures jumped from R277 million to R492 million, as the company undertakes significant capability-building projects and invests in marketing and customer acquisition. "We are encouraged that, even with continued investment in the business, adjusted EBITDA growth has accelerated relative to the first half of 2025," Bengtsson stated.
To improve efficiency and profitability, the company plans to implement a lower-cost and more centralized operating model, particularly to enhance outcomes for underperforming assets. Sun International has begun a consultation process under Section 189A of South Africa’s Labour Relations Act regarding potential large-scale job cuts, which may affect over 50 employees. "We remain committed to conducting the process with fairness, transparency, and respect," the company noted. They expressed intentions to retain and redeploy affected employees wherever feasible.
Additionally, Sun International is introducing its "Casino Lite" model aimed at enhancing profitability at smaller, underperforming properties by optimizing operations in both gaming and hospitality sectors.
