Sun International FY HEPS climbs 88%

Sun International, a leading hospitality and gaming company in South Africa, has reported an 88% jump in headline earnings for the fiscal year 2023. The company's revenue also grew by 5.5%, driven by a record performance in its gaming portfolio and the SunBet Sportsbook brand. Anthony Leeming, the CEO of Sun International, attributed this strong performance to several key drivers, including the growth of their online customer base and increased deposits. Leeming highlighted the company's goal of capturing 10% of the market share by 2028, indicating further potential for growth. One of the standout performers for Sun International was Sun City, which delivered an incredible performance with significant margin growth. Leeming expressed optimism about the company's outlook, noting a stronger recovery in table-based gaming and international drivers returning. He also mentioned the success of SunBet, particularly during major sporting events like the Rugby World Cup and the Africa Cup of Nations. The betting environment in South Africa has seen increased activity during such events, contributing to SunBet's growth. In terms of cost management, Sun International has focused on maintaining competitive pricing while improving efficiency. Leeming highlighted the company's ability to offer value for money, which has helped drive customers to their properties. Despite inflationary pressures, Sun International has managed its cost structure effectively, leading to improved margins. Looking ahead, Leeming shared a positive outlook for the company, citing a strong start to the fiscal year across all portfolios. The online business, in particular, has seen significant growth, with daily deposits surpassing previous averages. Sun City's occupancy rates have also shown improvement, signaling a promising start to the year. In terms of future investments, Sun International is set to acquire PMOMS, a significant move that will require focused integration efforts in the coming months. Overall, Sun International's performance in 2023 reflects a resilient business strategy and a commitment to driving growth in both gaming and hospitality sectors. With a strategic focus on online expansion and operational efficiency, the company is well-positioned for continued success in the year ahead.