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 urban casino sites 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.
The casino operator stated that its resorts segment and hotels had seen a “strong recovery” over the past six months. This was referring to the Covid-19 Pandemic, which has been in effect since 2020.
The operator said, “We continue experiencing a strong recover in both local and international business in the Resorts and Hotels segment of the Group.” “Domestic leisure revenues, sports and events and conferencing continue to grow. International leisure business has recovered strongly during the review period.”
The adjusted earnings before interest tax, depreciation, and amortization (EBITDA), for the period, was ZAR1,57bn. This is 5.6% more than H1 2020.
Segmental results
GrandWest, the largest of Sun International’s urban casino properties, generated ZAR891m in revenue. 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 brand generated ZAR298m in revenue, an increase of 138.3% year-on-year.
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 active players. First-time depositors increased by 469.2%.
Breakdown of the half-year
The net gaming gain for the six-month period was ZAR4.51bn. This represents an increase of 6.5%. Revenue, which includes other income, was ZAR1.26bn over the course of six months.
Employee costs were the highest operating cost, at ZAR1.17bn. This represents a 13.8% increase. The tax and VAT levied on casino revenue was ZAR1.06bn. Consumables and service costs were ZAR651m.
Total operating costs led to an operating profit of ZAR1.13bn. This represents a growth of 9.2%. After other costs, including ZAR310m of finance expense, and a gain from finance income of ZAR11m, the profit for the first half year was ZAR722m, an increase by 21.3%.
The overall profit for the first half of the year was ZAR485m. This represents a 41.0% increase.
Sun International expects to continue improving its operations in the second half of this year despite the “challenging economic conditions in South Africa” and the environment where it operates.
We will continue to achieve the results we need with the momentum we have gained and the leadership we have in place.
