Sun International (SUI) H2 2024 earnings summary

Executive summary

• Group income rose 5.1% year-over-year to R12.6bn, with adjusted EBITDA up 3.0% to R3.5bn and a margin of 27.9%.

• Sunbet achieved record income of R1.2bn, up 60.6%, and record adjusted EBITDA of R363m, exceeding five-year targets.

• Dividend declared increased 13.4% to 398cps, with a total capital return of R3.0bn since June 2022.

Financial highlights

• Continuing group adjusted EBITDA margin at 27.9%.

• Adjusted headline earnings per share (AHEPS) up 13.5% to 531cps.

• Group debt reduced to R5.2bn (from R5.7bn), with a debt to adjusted EBITDA ratio of 1.5x.

• Interest cover at 6.5x, well above bank covenant.

• Cash generated by South African operations converted to free cash at 61.2%.

Outlook and guidance

• Focus on increasing free cash flows and disciplined capital allocation.

• Urban casinos to grow market share, protect margins, and enhance loyalty through CRM initiatives.

• Sunbet to expand in Africa, launch new products, and grow active customer base.

• Resorts and Hotels anticipate ongoing income growth and improved margins, with international demand rising.

• Sun Slots to right-size underperforming sites and expand LPMs in new markets.