Despite the challenging economic environment, Sun International has seen a large boost in earnings and profits, with more customers returning to the group’s gaming business.
In its interim financial results for the six months ended 30 June 2023, the group’s income increased by 11.7% to R5.8 billion compared to the comparable period in 2022 despite a significant increase in diesel costs due to load shedding.
SunBet also saw income grow by 138.4% for the period, with the adjusted EBITDA growing by 542.9% from R14 million to R90 million.
SunBet also saw substantial growth in several key performance indicators compared to 2022:
- Unique active players up 702.8%;
- First-time depositors up 469.2%;
- Deposits up 216.2%.
The group’s Urban Casinos saw income increase by 4.2% with an adjusted EBITDA of R1.1 billion.
The group’s resorts and hotels also saw income grow 26.9% to R1.4 billion, with the Adjusted EBITDA up 64.4% to R314 million from R191 million in H1 2022.
“We continue to experience a strong recovery in both international and local business in the resorts and hotels segment of the group. Domestic leisure, conferencing and sports and events revenues continue to grow while international leisure business recovered strongly in the review period,” the group said.
“Sun City continues to achieve exceptional performance following the restructure and streamlining of its operations, along with the resort’s strong appeal to the South African market.”
“Additionally, The Table Bay Hotel experienced a significant surge in demand from international markets, leading to robust growth in both occupancies and room rates.”
However, not all of the group’s businesses saw growth, with Sun Slots’ income reducing from R730 million to R717 million and the adjusted EBITDA declining from R191 million to R166 million.
“Load shedding remains the major contributor which is negatively impacting this business. This has resulted in a decline in gameplay and footfall at Sun Slots’ sites, which was the major contributor to the lower-than-expected results during the period.
That said, the group is working on a on blended energy system to mitigate the effects of load shedding with the group using photovoltaic solar, battery solutions, the wheeling of green energy from IPPs and Eskom/Municipal power.
For instance, the group has installed a R17 million solar plant to reduce electricity consumption, freeing up 14% of the hotel’s electrical demand from Eskom. The group is also working on renewable energy projects at Sibaya and Carnival City.
Amidst the improved performance, the group has upped its interim dividend from 88 cents in H1 2022 to 148 cents in H1 2023.
Below are some of the group’s key financial results:
| Financials | Restated H1 2022 | H1 2023 | % Change |
| Basic earnings per share | 94 cents | 171 cents | 81.9% |
| Headline earnings per share | 93 cents | 173 cents | 86.0% |
| Interim Dividend | 88 cents | 148 cents | 68.2% |
- www.businesstech.co.za
