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Tsogo Sun (TSG) investor relations material
Tsogo Sun H2 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Income for the year ended 31 March 2025 was R11.16 billion, down from R11.50 billion year-over-year, reflecting pressure on discretionary spend and customer behavior changes.
Adjusted EBITDA declined to R3.47 billion from R3.90 billion, with margin dropping to 31.1% from 33.9% due to lower revenue despite cost controls.
Adjusted headline earnings were R1.47 billion, down from R1.72 billion, with the second half impacted by once-off items; excluding these, earnings would have been flat half-on-half.
Net finance costs decreased to R687 million from R732 million, aided by lower NIBD and interest rates.
Strong positive net cash was generated from operations, supporting a solid financial position for future growth.
Financial highlights
Net gaming win: R9.25 billion (2024: R9.67 billion); food & beverage revenue: R675 million; rooms revenue: R536 million.
Operating profit: R2.44 billion (2024: R2.88 billion); profit for the year: R1.19 billion (2024: R1.54 billion).
Basic and diluted EPS: 120 cents (2024: 147 cents); adjusted headline EPS: 142 cents (2024: 169 cents).
Final dividend per share: 30 cents (2024: 40 cents); total dividend for the year: 60 cents.
Capex cash outflow: R700 million; investment cash flow: R186 million.
Outlook and guidance
Trading environment remains challenging; a sudden turnaround is not expected, but sentiment is improving.
Focus remains on debt reduction, with a medium-term target of NIBD below R6.0 billion and leverage below 1.8x adjusted EBITDA.
Emerald Resort upgrade to complete in FY26, expected to improve results from FY27.
Online and LPM divisions expected to contribute positively; further product and technology development planned.
Dividend reduction seen as supporting accelerated debt reduction.
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