Sun International, the hospitality and entertainment group, has announced robust financial results for the year ending December 2023.
The company’s performance reflects steady growth across key metrics, underscoring its resilience and strategic execution amidst challenging market conditions.
Key Highlights:
Performance Overview:
Sun International’s performance was anchored by sustained growth in the gaming market, which reached R55.8 billion in gross gaming revenue.
Despite challenges posed by load shedding, the company’s gaming income showed resilient growth, with casino income maintaining stability and SunBet recording an exceptional performance.
Gaming income, which makes up 76.8% of total group income, showed continued sustained growth with income up 3.3%.
Additionally, resorts and hotels income witnessed remarkable growth, increasing by 17.4%, with Sun City emerging as a standout performer.
The company’s adjusted EBITDA margin improved to 28.1% for the full year, reflecting operational efficiencies and strategic initiatives.
Sun City was developed by the hotel magnate Sol Kerzner as part of his Sun International group of properties. It was officially opened on 7 December 1979, some 45 years ago.
The resort has seen the average daily rate and occupancies increase from R1,773 and 72.3% to R2,168 and 66.9%.
Sun International said it continues to work on an alternative energy plan, largely focused on photovoltaic solar solutions as well as battery storage plans to mitigate the effects of load shedding.
It has become clear that our units need a blended energy solution comprising of on site photovoltaic solar and battery solutions, wheeling of green energy from Independent Power Producers and Eskom or municipal power.
At Sun City, the group installed a R18 million solar plant in October 2023 to reduce its reliance on the national grid.
“This installation, which will provide a source of energy to Sun Central and the Valley of Waves, will free up an equivalent of 14% of Sun City’s electricity demand from Eskom, which will be to the benefit of the grid in the vicinity. In addition, we are currently installing photovoltaic solar solutions at Sibaya and Carnival City,” it said.
A key highlight of Sun International’s strategy is the proposed acquisition of Peermont Holdings Proprietary Limited, a leading hospitality and owner of Emperors Palace. Shareholders approved the acquisition, highlighting the strategic merits, including enhanced earnings quality, expanded gaming offerings, and synergies driving margin improvement and capital efficiencies.
As Sun International awaits regulatory approvals for the Peermont acquisition, the company remains focused on sustaining its growth trajectory and delivering value to shareholders.
With a strong financial position and strategic initiatives underway, Sun International is poised for continued success in the dynamic hospitality and entertainment landscape.
Shares in Sun International are up just over 3% over the past year.