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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.
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H2 2025 earnings summary28 May, 2025

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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Frequently asked questions

Tsogo Sun Limited is a South African company specializing in gaming, hotels, and entertainment. It operates a diverse portfolio that includes 15 casinos and 24 Galaxy Bingo sites across nine provinces, offering a range of entertainment options such as limited payout machines (LPMs), bookmaker licenses, hotels, a theme park, theatres, movie cinemas, restaurants, bars, and conference facilities. Tsogo Sun is headquartered in Johannesburg, South Africa, and its shares are listed on the Johannesburg Stock Exchange (JSE).

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