Tsogo Sun (TSG) H2 2026 earnings summary

Executive summary

• Headline earnings per share (HEPS) rose 8% year-over-year to 153 cents, with headline earnings up 7% to R1.57 billion; total income was R11.13 billion, flat from the prior year, and adjusted EBITDA was R3.46 billion at a 31.1% margin.

• Net debt reduced by R701 million to R6.49 billion, with net finance costs down 20% to R550 million; R904 million was returned to shareholders via dividends and share buy-backs.

• The online betting division turned profitable, with NGR up 24% to R313 million and adjusted EBITDA of R50 million, compared to a loss previously.

• Casino and hotel precincts generated strong cash flows, though revenue was flat at R8.2 billion and adjusted EBITDA declined 3% to R3.0 billion; LPMs grew revenue and EBITDA by 3%.

Financial highlights

• HEPS: 153 cents (up 8% year-over-year); headline earnings: R1.57bn (up 7%).

• Total income: R11.13bn (flat); adjusted EBITDA: R3.46bn (flat, 31.1% margin).

• Net debt: R6.49bn (down from R7.19bn); net debt/EBITDA ratio: 1.92x (target 1.80x).

• Dividends paid: R466m; share buy-backs: R438m; capex: R723m.

Outlook and guidance

• Focus on further debt reduction and maintaining strong cash generation.

• Continued investment in IT, gaming equipment, and expansion at Somerset West.

• Online betting and LPM divisions expected to drive future growth.