Sun International is focused on enhancing its SunBet product following a strong performance in the first half of the year. The operator announced yesterday that SunBet’s revenue jumped 35.5% year-on-year to R1.18 billion ($73.6 million), significantly exceeding the 19% overall growth of South Africa’s online market during the same timeframe.
Excluding the Table Bay Hotel, which Sun International operates under a management agreement with IHG, the group's income rose by 7.4% to R6.58 billion in the first half.
During the company's Capital Markets Day in March, Sun International expressed intentions to double SunBet’s market share in South Africa from its current 4.5%. Although the company did not provide an update on its market share during the recent earnings call on Monday, CEO Bengtsson emphasized that the product remains pivotal in their next expansion phase.
Bengtsson also indicated potential for growth both within South Africa and in other countries. He remarked, "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 opportunity that is being presented."
He elaborated that there might be chances to consolidate operations locally and internationally, but stressed that the company maintains a high threshold for investment quality.
SunBet expanded its reach to Namibia in May, supported by Bede Gaming’s platform, which it also uses in South Africa and Botswana, the latter of which it entered in 2024.
At the Capital Markets Day, Sun International disclosed that it was exploring expansion in Zambia, Kenya, and Ghana.
Additionally, the company has launched a new user interface for SunBet in South Africa and Botswana, with plans for further enhancements. Bengtsson stated, "That work is ongoing. We had a very strong World Cup, which shows that our sportsbook can handle and can have the capacity to handle larger volumes."
He noted that the trajectory is promising, though the company is not yet satisfied with the results. "A lot of the work has been done, and we have a lot more planned for the rest of the year. So bear with us. It is happening."
In terms of the sports betting sector, Bengtsson reported that the distribution between casino and sports betting for SunBet stands at about 90% casino to 10% sports betting, indicating a significant gap in sportsbook performance. He highlighted, "We think the market overall 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 momentum generated from the World Cup has continued into the second half of the year, facilitating customer acquisition, although July saw lower activity due to the closure of most football leagues.
Beyond SunBet's growth, Sun International reported a revival in its land-based casino sector for the first time in three years, with revenue increasing by 1.5% to R3.42 billion and market share rising 2.3% to 49%. Despite a slight dip in land-based gross profit, Bengtsson believes the recent investments will enhance operating leverage as casino revenues grow.
He remarked, "The sustainability in the operational improvements and in our market share gains are clearly there. Our ambition has always been to change the trajectory of our land-based business, which I think we now have done."
Bengtsson also noted the interactions between Sun International's land-based and online businesses, emphasizing the opportunity to convert existing customers into online users. "We continuously leverage off one another. 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."
As they pursue growth, the company recognizes that while most land-based customers engage online, not all are using SunBet, marking a significant opportunity for expansion within their customer base.
