Sun International, the leading hospitality and gaming firm based in South Africa, experienced annual revenue growth by 5.5% to R12.10bn, which is roughly €590.4m, during the past year. This increase was driven by the excellent performance of its leading casino Sun City and its sportsbook brand SunBet.
Revenue data:
South African gaming market saw an increase for the 3rd year in the row to R55.8bn gross iGaming income. Additionally, gaming revenue, which accounts for 76.8% of the group’s overall revenue, displayed relentless continuous growth with a maximum profit of 3.3%.
As for casino revenue in particular, it recovered quickly and experienced a decline of only 1%. However, the slot operations were affected by the decrease in load, with the revenue being little lower compared to the previous year.
Then there is SunBet, which achieved record revenue over the past financial year, an increase of 116.2%. It also exceeded its assertive growth goals established for this particular business.
Furthermore, the revenue generated from hotels and resorts managed to reach a remarkable increase, meaning that it recorded a growth of 17.4%. But Sun City was the best performer since it managed to reach a net positive cash flow contribution and record profitability to the group.
Strong growth trajectory:
When it comes to SunBet in particular, the online sportsbook has experienced a resilient growth trajectory, which means that it is now hitting its 5-year goals. In terms of total revenue collected, it increased by 116.2%, compared to the previous year, to R733m, resulting in an excellent adjusted EBITDA of R221m.
Regardless of a problematic operating environment because of the resulting increase in diesel costs and load shedding, casino revenue grew by 0.2% and adjusted EBITDA was R2.4bn for 2023. In addition, hotels and resorts experienced a remarkable year with resilient increase in revenue and a significant increase in adjusted EBITDA margin after the significant work was performed on an expense basis.
Within the sector, revenue from beverages, food and rooms income saw remarkable increase, growing by 28.9% on an annual basis. Additionally, Sun City managed to reach net positive cash flow contribution and record profitability to the group.
The global leisure business saw a strong recovery throughout the said year, while revenues from events, sports and conferences, as well as domestic leisure proceeded to rise. Also, within the sector, revenues from beverages, food and rooms saw remarkable increase, an increase of 28.9% on an annual basis.
In this regard, the operator commented according to G3 Newswire: “Our results once again demonstrate that Sun International has a unique integrated portfolio of high quality gaming and hospitality businesses that will continue to deliver sustainable earnings and position us well for growth. We are executing effectively on our omni-channel strategy and are focused on extracting further operational efficiencies as we look to protect and grow our income and margins. While the economy and load shedding is placing pressure on our urban casinos, trading levels at the start of 2024 have improved marginally and our Limited Payout Machines operations are demonstrating continued resilience. SunBet is achieving significant income growth and is exceeding key performance indicators. This strong momentum is expected to continue with another substantial increase this year as the business expands rapidly. Our resort and hotel properties have continued to perform exceptionally well, and we anticipate another good year from them in 2024.”