Online Sports Betting Helped Sun International Boost Profits
If ever there was evidence that online sports betting is growing from strength to strength, just take a look at the half-year profits growth predictions for the South African hotel and casino group, Sun International. In a recent report, it was shown that the group is expecting particularly strong profit growth in the half year ending June 2023, and a lot of it has to do with the record revenue generated by its online sports betting business, SunBet.
Other financial news and numbers from Sun International as follows:
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- Headline earnings per share should rise between 73 and 98% in the six- month period.
- Adjusted headline earnings are expected to rise 12%.
- SunBet generated record-breaking income. According to Sun International, SunBet was “well on its way to achieving the aggressive growth targets set for this business.”
- Net debt was kept steady, in comparison to 2022, thanks to prudent capital management and cash generation.
- By the end of 2022, Sun International had R380 million in cash.
- At the end of this same period, the company had R8 billion in total debt.
- The devaluation of the Nigerian naira negatively affected Sun International’s profit growth. R700 million of the debt is in Nigeria.
- Sun International is valued at R9 billion on the Johannesburg Stock Exchange.
Strong Growth at Sun International Casinos
According to Sun International, its hotels and casino resorts performed exceptionally in the first half of the year. In particular, its urban casinos did very well.
Unfortunately, due to load shedding, Sun International’s limited payout machines brand, Sun Slots, came under pressure.
Revenue from Sun International casinos made up 80% of the group’s revenue in 2022. This included SunBet and SunSlots.
Sun International operates some of the top businesses in South Africa’s casino world, including the Wild Coast Sun, the Maslow in Sandton and its flagship Sun City in the North West province.