Sun International resumes dividend payments

Sun International, a renowned gaming and hospitality group, has made a significant financial move by resuming dividend payments for the first time since 2016. The announcement of an interim dividend of 88 cents per share comes on the heels of the company's transition from a first-half headline loss to a profit of 93 cents per share. Anthony Leeming, the CEO of Sun International, joined CNBC Africa to discuss the company's impressive financial performance. Leeming highlighted the sustainable nature of the profitability increase, noting that while the business has shown substantial recovery across different segments, it has not yet reached pre-pandemic levels in all areas. The local leisure and conferencing sectors have seen a remarkable rebound, with positive performance in the Sun and Slots business as well as the online segment. Leeming attributed this success to cost-saving measures implemented during the COVID-19 period, which have resulted in higher EBITDA despite overall revenue still lagging behind 2019 levels. Looking ahead, Leeming expressed optimism about the company's prospects, emphasizing the return to normality on various fronts, including international travel, business conferencing, and overall business operations. The CEO also indicated a strong second half performance, with a positive outlook for revenue growth and increased dividend payments. The company's ability to pay dividends signals confidence in its financial position, with debt levels projected to remain comfortably low. Sun International's focus on cost efficiency and revenue recovery bodes well for future dividends and sustained financial stability. Leeming also discussed the evolving landscape of domestic travel, noting that despite challenges like rising inflation and interest rates, the company has not observed significant shifts in consumer behavior. Additionally, Sun International is exploring alternative energy sources and plans to invest in private energy generation to reduce costs and enhance sustainability. By leveraging renewable energy options, the company aims to not only improve operational efficiency but also contribute to environmental conservation. Overall, Sun International's strategic initiatives and strong financial performance position the company for continued growth and resilience in the post-pandemic era.