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Sun International revenue increases 11.6% during H1

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Income at Sun International rose 11.6% to ZAR5.78bn (PS243.7m/EUR284.5m/$305.3m) for the six months until 30 June, as the operator recorded growth across the board despite a “difficult economic climate and increased competition”.

Sun International reported a 26.9% increase in revenue to ZAR1.42bn, praising “exceptional growth”. The operator’s nine casinos in urban areas generated the highest income of ZAR3,27bn (up by 4.2%).

The casino revenue in urban casinos accounted for 91.8%, and grew by 2.2%, to ZAR3.00bn.

Casino operator stated that its Resorts and Hotels segment experienced “strong recoveries” over the past six months. This is a reference to the Covid-19 Pandemic, which has been in effect since 2020.

The operator said, “We are continuing to see a recovery of both the international and the local business within the Resorts and Hotels segment.” The domestic leisure, sports and events and conferencing revenues are continuing to increase. Meanwhile the international leisure segment has recovered well in this review period.

The adjusted earnings before tax, depreciation, and amortization (EBITDA), for the period, was ZAR1,57bn. This is 5.6% more than H1 2022.

Segmental results

GrandWest, the largest of Sun International’s casinos in urban areas, generated ZAR891m. Time Square brought in ZAR724m while Sibaya generated ZAR634m.

Sun International’s Sun Slots contributed ZAR717m to the income from urban casinos, resorts and hotels. SunBet’s sportsbook division generated ZAR298m in revenue, an increase of 138.3% year-onyear.

The income from corporate offices and management was ZAR2m. This is a 60.0% decline.

Total income in South Africa increased by 11.5%, to ZAR5.71bn. The income for Nigeria and others was ZAR72m. This represents a 20.0% increase.

Sun International reported a 702.8% increase in the number of unique players. The number of first-time depositors has grown by 469.2%.

Breakdown of the half-year

The net gaming gain for the first six months of 2014 was ZAR4,51bn. This represents an increase by 6.5%. Revenue, which also includes other revenue, was ZAR1.26bn over the course of six months.

Employee costs were the most expensive of all operating costs in the first quarter, at ZAR1.17bn. This represents a 13.8% increase. The tax and VAT levied on the casino revenue was ZAR1.06bn. Consumables and service costs were ZAR651m.

Total operating costs grew by 9.2%, bringing the operating profit up to ZAR1.13bn. After other costs, including ZAR310m of finance expenses, and a ZAR11m gain from finance income the profit for the first half year was ZAR722m, an increase by 21.3%.

The overall profit of ZAR485m for the first half was up 41.0% after taxation.

Sun International expects to continue improving its business in the second half, despite the “challenging economic conditions” in South Africa.

We will continue to achieve the results we need with the momentum we’ve achieved.

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