Sun International is focused on enhancing its SunBet platform following impressive first-half earnings that significantly benefit its overall online business.
In a recent report, the operator announced that revenue from SunBet experienced a remarkable surge of 35.5% year-on-year, totaling R1.18 billion ($73.6 million) during the first half of the fiscal year. This growth outstripped the 19% expansion of South Africa's online market within the same timeframe.
Excluding the Table Bay Hotel, which is operated under a management agreement with IHG, Sun International's group income rose by 7.4% to R6.58 billion in the first half.
At the company's Capital Markets Day held in March, Sun International revealed ambitions to increase SunBet's share of the South African online market from its current 4.5%. Though the company did not provide details on the progress of its market share since then, during a post-H1 earnings call on Monday, CEO Bengtsson emphasized the importance of product development for the next expansion phase.
Bengtsson hinted at potential growth opportunities both within South Africa and internationally. "We see plenty of inorganic opportunities around the business," he remarked, stressing the company's openness to consolidating minority holdings if viable opportunities emerge.
He noted, “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 expanded into Namibia in May, utilizing the platform provided by Bede Gaming. This same platform operates in South Africa and Botswana, the latter of which saw SunBet's arrival in 2024. During Capital Markets Day, the company also outlined plans to explore market expansion in Zambia, Kenya, and Ghana.
Regarding product development, Sun International recently rolled out a new user interface for SunBet in South Africa and Botswana. Bengtsson mentioned that further enhancements are in the pipeline. “We had a very strong World Cup,” he stated, highlighting that the sportsbook has proven its capacity to manage larger volumes. “We’re still not where we want to be, but significant progress has been made, and we have many more improvements planned for the year. Bear with us; it is happening.”
Currently, SunBet has about a 90% share of its business from casino games, with only 10% from sports betting, which presents a noticeable gap in the market that the company aims to bridge. Bengtsson commented, “We think the overall market is probably somewhere around 35%-40% sportsbook, so that is the delta we have to close by delivering a better product and better operational intensity in our sports business.”
The positive outcomes from the summer World Cup have continued into the latter half of the year, contributing to customer acquisition and a strong turnover period. “Now, we’ve entered a low sportsbook activity cycle during July with most football leagues closed, but we maintain that underlying improvement in momentum,” he added.
On the land-based casino side, Sun International also reported a return to revenue growth, marking the first time in three years. Land-based casino revenue grew by 1.5%, reaching R3.42 billion, while the company's market share in South Africa increased by 2.3% to 49%. However, gross profit from land-based operations saw a slight dip of 0.7% to R2 billion, correlating with increased investments in the segment.
Bengtsson expressed confidence that the revenue growth from recent investments will enhance operational efficiency as their casino business continues on an upward trend. “The sustainability in the operational improvements and our market share gains are clear,” he said. “Our ambition has always been to change the trajectory of our land-based business, which, I believe, we have now achieved. We are focused on capturing more market share in land-based casinos.”
The CEO emphasized the synergy between Sun International’s online and land-based operations, highlighting the potential to capture more online activity from existing customers. “We consider our business as one customer ecosystem. I keep saying that SunBet probably wouldn’t be where it is today without a land-based business, and vice versa. We continuously leverage each other, and while many of our land-based customers are engaging online, not all are using SunBet, which we see as a significant opportunity.
