Sun International is focused on enhancing its SunBet product following a notable increase in its first-half earnings.
The company reported a year-on-year revenue increase of 35.5%, reaching R1.18 billion ($73.6 million) for SunBet during the first half of the year. This considerable growth outpaced the overall 19% increase in South Africa’s online market.
In the same period, Sun International's total group income grew by 7.4%, totaling R6.58 billion, excluding income from the Table Bay Hotel, which the company manages in collaboration with IHG.
During the Capital Markets Day in March, Sun International expressed ambitions to double SunBet's market share from 4.5% within South Africa. Although specifics on market share progress since then weren't provided, CEO Bengtsson emphasized the importance of product development for future growth.
Bengtsson indicated potential for expansion beyond South Africa, mentioning "plenty of inorganic opportunities" available to the company. "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.
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," he said.
SunBet initiated operations in Namibia in May, powered by Bede Gaming. The platform is also utilized in SunBet's other markets, which include South Africa and Botswana, where it launched in 2024. Opportunities for expansion into Zambia, Kenya, and Ghana are currently under assessment by the company.
Recently, Sun International rolled out a new user interface for SunBet in both 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 larger volumes. We’re very encouraged with the trajectory of that, but we’re still not where we want to be. A lot of the work has been done, and we have much more planned for the rest of the year. So bear with us. It is happening."
Bengtsson clarified that the revenue split between casino and sports betting for SunBet is approximately 90% to 10% in favor of casino operations. Sun International recognizes this as an opportunity, believing the sports betting market comprises 35%-40% of the overall market share. "So that is the delta we have to close by delivering a better product and better operational intensity in our sports business," he stated.
The success from the summer World Cup has carried into the second half of the year, as Bengtsson noted, "The World Cup is largely a customer acquisition opportunity, and it was also combined with a good turnover period for us. Yes, that has continued. Now, having said that, we’ve also been in a low sportsbook activity environment during July when most football leagues have been closed. But we have that underlying improvement in momentum, and we continue that now throughout the rest of the year."
Apart from SunBet’s growth, another significant aspect of Sun International's first half was the return to profitability in its land-based casino segment, marking the first growth in three years. Revenue from land-based casinos increased by 1.5% to R3.42 billion, while their market share in South Africa climbed by 2.3% to 49%. Despite a slight decrease in land-based gross profit, down 0.7% to R2 billion, the company has increased investments in this segment.
Bengtsson stated that gains from these investments are expected to lead to improved operating leverage in the casino business. "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. Our ambition is now to continue to take market share in the land-based casinos."
Bengtsson also stressed the synergy between Sun International’s land-based and online operations, highlighting potential for increased online activity among existing customers. "We look increasingly at 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 a land-based business probably wouldn’t be where it is today without SunBet. We continuously leverage off one another. Now, having said that, we know that almost all of us, or at least the vast majority of our land-based customers are playing online, but not all of them are playing with SunBet, so we see that bit as the opportunity.
