Sun International’s online betting business SunBet recorded strong growth for the year to December lifted by an increase in users.
SunBet’s overall income surged 60.6% to R1.2bn for the 12-month period, boosted by a rise in active players. The strong performance was supported by marketing efforts, the launch of new games and improvements to the overall player experience. Total deposits rose to R4.9bn from R3bn in 2023. First time depositors increased to 259,000 from 176,000.
Sun International said SunBet has surpassed its five-year targets set out in its agreed strategy in 2022.
“SunBet continues to present the group with tremendous growth potential, being one of the fastest-growing companies in the online market ... Our goal is to establish SunBet as the leading and most trusted online gaming operator in Southern Africa,” Sun International said.
During the year, the hotels, gaming and entertainment group acquired new licences in Mpumalanga, North West and Botswana, launched a number of new offerings, including Aviator, slot games from new operators and games it offers at its land-based casinos. It has also improved its horse racing product.
Sun International's income for the year to December increased by 5.1% to R12.6bn, while continuing adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 3% to R3.5bn. The group’s adjusted headline earnings grew by 13% to R1.3bn, with adjusted headline earnings per share up 13.5% to 531c.
The booming local tourism market has played a pivotal role in this recovery while South Africa’s favourable currency exchange rates and attractions have made it a highly sought-after destination for foreign visitors
— Sun International
The group, which owns Sun City Resorts, The Table Bay Hotel and The Maslow Hotel, said the local resorts and hotels sector has experienced a strong recovery, driven by robust domestic leisure demand, conferencing and a resurgence in international tourism.
“The booming local tourism market has played a pivotal role in this recovery while South Africa’s favourable currency exchange rates and attractions have made it a highly sought-after destination for foreign visitors,” it said.
Sun International has capitalised on this positive momentum, with growth in income and a notable improvement in the adjusted EBITDA margin, pre-management fees. Total resorts and hotels income was up 7.6% to R3.3bn, despite the first half of the year being affected by the national elections, with many events either cancelled or moved to later in the year.
Total income from casinos was marginally down 0.2% to R6.7bn.
Sun International CEO Anthony Leeming said the gaming industry was experiencing dynamic changes and Sun International, through its omnichannel strategy, would continue leveraging its strong brand and market presence to retain and expand its customer base.
He said despite the uncertain macro environment, “we expect the lower inflation and interest rates to create a more favourable operating environment in the medium to long term. Year-to-date trading has followed a similar trend to prior periods with extremely strong growth in our online business SunBet, increased resorts and hotels income and urban casinos and Sun Slots achieving low single digit growth.”
TimesLIVE
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