SunBet, the online betting platform operated by Sun International, posted a 72% increase in overall income for the six-month period ended June 2024.
"Sunbet has continued its exceptional growth trajectory and is exceeding its targets, Sun International said on Monday (September 2024). Overall income was up 71.8% for the period, to R512 million delivering a record adjusted EBITDA, pre-management fees, of R170 million - up 88.9% on the prior comparative period, it said.
Active players continued to grow with additional games being offered and the overall player experience being enhanced, the group said.
While customer acquisition is key, retention of long-term players will deliver profitable results for Sunbet. At the end of the period under review, we achieved substantial growth in our key
performance indicators against 2023 which included:
unique active players up 72.2%;
first time depositors up 111.6%; and
deposits up 74.2%.
Sun International delivered a robust trading performance, underpinned by the strength of its diversified operating model, the resilience of its omnichannel portfolio, and disciplined strategic execution.
The performance of the group and the successful execution of the group's strategy of growing its online gaming business and omnichannel offering has yielded a continuing adjusted EBITDA of R1.6 billion up 4.0%, with group adjusted headline earnings up 8.7% to R524 million and adjusted headline earnings per share up 9.1% to 215 cents per share when compared to 30 June 2023.
Key figures:
Continuing income up 5.0% to R6.0 billion
Continuing adjusted EBITDA up 4.0% to R1.6 billion with adjusted EBITDA margin at 27.3%
Record Sunbet income up 71.8% to R512 million
Adjusted headline earnings per share (AHEPS) up 9.1% to 215 cps (2023: 197 cps)
Interim cash dividend of 161 cps (2023: 148 cps) up 8.8%
The group's income for the period increased by 5%, to R6.0 billion. Gaming income, which constitutes 77.4% of the group's total income, demonstrated sustained growth, increasing by 3.4%.
Casino income at the group's four largest urban casinos grew by 2.2% while the smaller regional casino growth remained challenging.
"Hospitality income (excluding casino income) from our resorts and hotels exhibited exceptional growth, increasing by 12.3%, the group said.
Room revenue for urban casinos was up 27% and 14% for resorts and hotels.
Sun Slots income declined by 4.3% to R686 million compared to the prior period, and management has launched a range of initiatives to address this decline.
Looking ahead, the group said that he gaming industry is experiencing dynamic changes and Sun International, "through Sunbet, will continue leveraging its strong brand and market presence to expand our customer base and enter new online markets across Africa".
"We expect the recent government initiatives aimed at stimulating economic activity and improving infrastructure including the stabilisation of the electricity supply, easing inflation and lower interest rates to create a more favourable operating environment in the medium to long term."
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