Sun International reported a 7.4% increase in group income during the first half of the year, primarily attributed to significant gains from its online betting platform, SunBet. The group's income reached R6.58 billion ($411.9 million), excluding revenue from the Table Bay Hotel, which is operated under an agreement with IHG.
The adjusted EBITDA, not accounting for the hotel, grew by 2% to R1.59 billion, with revenue expansion sitting at the higher end of expectations. A key driver of this growth was the online division, where SunBet experienced a remarkable 35.5% year-on-year revenue increase, reaching R1.18 billion.
CEO Ulrik Bengtsson highlighted how SunBet's revenue surge eclipsed the overall 19% growth in the South African online market during the same period. The platform saw a 32.3% rise in active player days and a 17.5% increase in first-time depositors. This success is further fueled by the introduction of proprietary in-house technology, which facilitated a new user interface launch in South Africa and Botswana. Bengtsson expressed optimism, calling the early signs of growth on the platform “encouraging.” He noted, “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 specific figures on SunBet's share of the South African online market were not disclosed, the company previously communicated plans to double that market share.
The land-based casinos segment also showed signs of recovery, marking its first growth in three years with a revenue increase of 1.5% to R3.42 billion. Sun International's market share rose by 2.3% to 49%. This upswing is attributed to investments in product range and marketing, as gross gaming revenue from land-based casinos grew by 4.4%, supported by the launch of 876 new slot machines and stadium games.
Bengtsson attributed this growth to what he described as “strong execution and sound investment decisions.” Despite the revenue increase, gross profit from land-based operations fell by 0.7% to R2 billion due to rising marketing expenditures. Looking forward, Sun International is adapting to a digital and experience-oriented environment and expects these initiatives, alongside a streamlined operating model, to enhance performance and profitability in the medium term.
In hospitality, revenue grew by 2.8% to R1.29 billion, despite costs of about R20 million from cancellations related to the conflict in Eastern Europe.
The company noted a strong start to the second half of the year, with revenue growth up to August 31 surpassing initial guidance of 6% to 8%. Sun International has significantly increased its capital expenditure, from R277 million to R492 million, reflecting its dedication to developing capabilities and marketing efforts to boost customer acquisition and market share. Bengtsson commented, “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 ongoing investments, the growth in adjusted EBITDA has accelerated compared to the first half of 2025.
Amidst these developments, the company is intensifying its focus on operational efficiency and margins, moving towards a centralized and cost-effective operational model, particularly regarding underperforming assets. Sun International has initiated a formal consultation process regarding Section 189A of South Africa’s Labour Relations Act, dealing with large-scale layoffs affecting companies with more than 50 employees. The company stated, “We remain committed to conducting the process with fairness, transparency and respect” while also stating their willingness to retain and redeploy employees within the organization whenever feasible.
Also, during the first half of the year, Sun International rolled out its new “Casino Lite” model, aimed at boosting profitability in smaller, less effective establishments. This model targets optimizing operations for both gaming and hospitality to enhance adjusted EBITDA and operating margins.
