The Palace in Sun City,Sun International hotel.Photo Supplied
Sun International expects the recovery of its hotels and casino operations to continue in the second half of its financial year following the lifting of Covid restrictions, and declared its first dividend since 2016.
It also forecast a “significant improvement” in earnings per share over the previous year. An interim dividend of 88 cents was declared.
Overall, the July 2022 income was already in line with 2019 and ahead of the run rate achieved in the first six months to June 30, the group said with the release of its interim results.
The share price traded 1.26 percent higher at R31.29 by early yesterday afternoon - at that level the p[rice has gained 71.5 percent over 12 months. Five years ago the share price was as high as R59.35.
Gaming income from casinos, Sun Slots and SunBet, which makes up 82 percent of group income, was up 30 percent during the first half of the year.
“These exceptional results were achieved despite a trading environment that was impacted by the ongoing effects of the pandemic, power outages, increasing fuel prices, high inflation and international supply chain disruptions,” chief executive Anthony Leeming said in a statement.
He said the group had been able to successfully defend and grow market share in most provinces, while income generated from Sun Slots recovered to exceed pre-pandemic levels. SunBet generated record income, and was well on its way to achieving “aggressive growth targets.”
SunBet’s income growth would be aided by the recently launched slots offering.
“Our omni-channel offering with Sun International's premium hotel and casino portfolio and integrated MVG programme will also assist in increasing our share of the online gaming market,” the group said.
First half results were robust - group income was 37 percent higher at R5.2 billion, headline earnings increased more than 100 percent to 93 cents.
Income generated from Sun Slots recovered to exceed pre-pandemic levels. South African debt, excluding IFRS 16 lease liabilities, fell to R5.9bn from R6.4bn at December 31, 2021.
Wayne McCurrie, a portfolio manager at Ashburton Investments, said on Twitter, @WayneMcCurrie, “Sun International fantastic results... Big cost savings. Adjusted headline earnings turn around of R450m. Margin up strongly. Dividend reinstated.”
edward.west@inl.co.za
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