Sun International announced a significant growth of 7.4% in group income for the first half of the year, totaling R6.58 billion ($411.9 million), excluding revenues from the Table Bay Hotel, which is managed under a partnership with IHG.
The company's adjusted EBITDA, without including the hotel, rose 2% to R1.59 billion. This financial performance was bolstered by Sun International’s online brand, SunBet, which saw a remarkable year-on-year revenue increase of 35.5%, reaching R1.18 billion.
CEO Ulrik Bengtsson remarked on SunBet's growth, noting it significantly surpassed the 19% overall growth of South Africa’s online market during the same period. Additionally, active player days increased by 32.3%, and first-time depositors grew by 17.5%. The successful rollout of new proprietary in-house technology and a revamped user interface in South Africa and Botswana were pivotal in this surge, with Bengtsson stating the performance as “encouraging.” He added, “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.”
While Sun International has not disclosed SunBet’s exact share of the South African online market, earlier in the year, management indicated intentions to double this market share.
In tandem with online growth, Sun International's land-based casino segment also marked its return to profitability for the first time in three years, with revenues improving by 1.5% to R3.42 billion. The company’s market share increased by 2.3% to 49%. Investments in product offerings and marketing contributed to this rebirth, with land-based gross gaming revenue climbing by 4.4% following the launch of 876 new slot machines and stadium games.
Bengtsson praised the company’s efforts, highlighting that the land-based growth reflects strong execution and sound investment decisions. However, it was noted that the gross profit from land-based operations dipped by 0.7% to R2 billion, attributed to ongoing marketing investments.
As the land-based gaming sector transitions into more digital experiences, the company believes that its current initiatives, coupled with a low-cost operating model, will enhance profitability and market share over the medium term.
In hospitality, revenue also rose, reaching R1.29 billion, despite incurring about R20 million in losses from cancellations related to the war.
Looking ahead, Sun International reported a robust start to the second half of the year, with revenue growth surpassing its guidance of 6% to 8% as of August 31. However, significant capital investments have surged from R277 million to R492 million. Bengtsson noted, “We have executed one of the largest capability building projects in the company’s history and invested in marketing, customer acquisition and market share gains in a very intentional way.” Despite these investments, adjusted EBITDA growth has seen an acceleration compared to the first half of 2025.
Amid these developments, Sun International is placing a stronger emphasis on operational efficiency and profit margins, with plans to establish a more centralized and cost-effective operating model, prioritizing the profitability of its underperforming assets. As part of this strategy, the company has initiated a consultation process in accordance with Section 189A of South Africa’s Labour Relations Act, which outlines protocols for large-scale retrenchments where companies employ over 50 workers.
They stressed their commitment to handle these discussions fairly and transparently. Sun International also aims to retain and redeploy staff within the organization wherever possible.
During the first half of the year, the company adopted a new “Casino Lite” model designed to bolster profitability at their smaller, less successful properties by optimizing gaming and hospitality operations to enhance adjusted EBITDA and operational margins.
