Sun International (SUI) H1 2025 Pre Recorded earnings summary

Executive summary

• Delivered solid half-year results for the period ended June 30, 2025, with group income up 6.7% year-on-year to ZAR 6.1 billion, reflecting portfolio resilience and omni-channel strategy execution (excluding Table Bay Hotel lease cessation).

• SunBet income surged 70.7% year-on-year to ZAR 874 million, establishing it as a key digital growth driver.

• Urban Casinos income declined 1.4% to ZAR 3.2 billion, impacted by market contraction and operational inefficiencies, but non-gaming revenue grew robustly.

• Interim cash dividend declared at 172 cents per share, up 6.8%.

• Strong balance sheet with debt-to-adjusted EBITDA at 1.5x and available liquidity of ZAR 2.4 billion.

Financial highlights

• Adjusted EBITDA increased 1.1% to ZAR 1.6 billion, with a margin of 25.4%.

• Adjusted headline EPS rose 6.5% to ZAR 2.29; interim dividend up 6.8% to ZAR 1.72 per share.

• Free cash flow reached ZAR 1 billion, with 106.7% EBITDA-to-cash conversion.

• Net interest cost decreased by 15.1% due to lower debt and interest rates.

• ZAR 2.4 billion in available cash and facilities, supporting liquidity and investment.

Outlook and guidance

• Focus on scaling digital gaming, optimizing casino operations, and enhancing omni-channel offerings.

• Continued investment in technology, product, and marketing to drive SunBet growth and market share.

• Ongoing refurbishment and asset upgrades to support long-term value creation, including Sun City and Table Bay Hotel.

• Commitment to responsible gambling and proactive regulatory engagement.

• Open to selective acquisitions in online gaming and minority buyouts.