Sun International is focused on enhancing its SunBet product following a substantial increase in earnings reported for the first half of the year.
The operator disclosed that SunBet's revenue rose by 35.5% year-on-year to R1.18 billion ($73.6 million) in the first half of the year, significantly outpacing the 19% growth of South Africa's overall online market during the same timeframe.
This increase in online activity has contributed to a 7.4% rise in Sun International's group income, which reached R6.58 billion in the first half, excluding the Table Bay Hotel (TBH), currently managed under a partnership with IHG.
During the company’s Capital Markets Day in March, Sun International revealed intentions to double SunBet’s market share in South Africa, which currently stands at 4.5%. While the company refrained from commenting on current market share progress, CEO Bengtsson emphasized the importance of product development for the next expansion phase during the post-H1 earnings call on Monday.
Bengtsson hinted at potential growth opportunities both locally and internationally, stating that the company sees "plenty of inorganic opportunities" ahead. "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 an opportunity that is being presented," he noted.
He elaborated that while there could be consolidation prospects within South Africa, there might also be options outside the country. However, he stated they maintain a high threshold for what constitutes a good investment.
In May, SunBet launched in Namibia, backed by Bede Gaming's platform. The same platform supports SunBet in South Africa and Botswana, the latter being a market SunBet entered in 2024. At their Capital Markets Day, the company also indicated it was exploring expansion in Zambia, Kenya, and Ghana.
Regarding product development, Sun International recently unveiled a revamped user interface for SunBet in South Africa and Botswana, with plans for further enhancements. Bengtsson remarked on the improvements since launching, particularly mentioning the successful handling of higher volumes during the recent World Cup.
While SunBet recorded strong results from the World Cup, the current split between the casino and sports betting markets stands at approximately 90% and 10%, respectively. Bengtsson stated, "We think the market overall is probably somewhere around 35%-40% sportsbook," highlighting a gap they aim to close by improving the product and operations.
Though the World Cup propelled customer acquisition, Bengtsson acknowledged July's low sportsbook activity due to the closure of most football leagues. He reassured that the underlying momentum from earlier successes is expected to continue into the latter part of the year.
Beyond the growth of SunBet, Sun International experienced a resurgence in its land-based casino segment, marking the first growth in three years. Revenue from these casinos increased by 1.5% to R3.42 billion, with market share in South Africa growing by 2.3% to 49%. However, gross profit in this segment fell by 0.7% to R2 billion due to rising investment costs.
Bengtsson anticipates that recent investments will lead to improved operating efficiency as the casino segment expands. He indicated that the operational improvements and market share gains are palpable and ongoing. "Our ambition, as we outlined in March, has always been to change the trajectory of our land-based business, which I think we now have done," he shared.
Bengtsson also discussed the synergies between land-based and online operations, noting the ability to capture more online activity from existing customers. "We look increasingly at our business as one customer ecosystem or one customer platform, if you will. 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," he stated, recognizing the opportunity to convert land-based customers to online users.
