Sun International, the South African gaming and hospitality group, reported a better-than-expected financial performance for the year ended December 31, driven by significant growth in its online gaming division, Sunbet.

Sun International CEO Anthony Leeming said: “Our omnichannel approach has helped the group navigate the evolving gaming environment and with our significant growth in Sunbet we continue to see growth in our gaming revenue.”

The results, released on Monday, reflect a resilient omnichannel portfolio amid a challenging macroeconomic environment.

Adjusted headline earnings per share (Heps) rose 13.5% to 531 cents, up from the previous year, translating to adjusted headline earnings of R1.3 billion, a 13% increase. The board declared a final gross cash dividend of 237c per share, up 16.7% from 2023, bringing the total dividend for the year to 398c.

Continuing income grew 5.1% to R12.6bn, supported by a 60.6% surge in Sunbet’s income to R1.2bn. Group-wide continuing adjusted Ebitda increased 3.0% to R3.5bn, achieving an adjusted Ebitda margin of 27.9%.

Sun International said debt levels, excluding International Financial Reporting Standards 16 lease liabilities, decreased from R5.7bn in 2023 to R5.2bn, reducing the debt to adjusted Ebitda ratio to 1.5 times.

Sunbet’s performance underpinned the group’s results, with adjusted Ebitda, pre-management fees, reaching R363 million, up from R221m in 2023. Income soared 60.6% to R1.2bn, exceeding its five-year targets set in 2022. Active players increased 35%, first-time depositors rose 47.2%, and deposits climbed 63.3%. The division expanded with new licences in Mpumalanga, North West, and Botswana, alongside product enhancements like Aviator, new slot games from operators also featured in its land-based casinos, and an improved horse racing offering.

A revamped website with a modern e-commerce design and a marketing campaign tied to Sun City further supported its brand relaunch, positioning Sunbet as a leader in southern Africa’s online gaming market, the group said.

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Sun International posts robust growth fuelled by online gaming surge for 2024