Sun International H1 HEPS climbs 9%

Sun International, a leading hospitality group, has reported a 9.1% increase in adjusted headline earnings per share for the first half of the year. The company's online unit, Sunbet, achieved a record income of R512 million, signaling a strong performance in the online gaming sector. Sun International plans to expand its online presence into new markets across Africa, with Botswana and Namibia being the primary targets for entry. CEO Anthony Leeming shared insights on the company's growth strategies and sector trends in a recent CNBC Africa interview. Leeming highlighted the dynamic changes in the gaming industry, particularly the significant growth in the online segment. He noted that while urban casinos have experienced flat growth, online gaming has seen substantial expansion. The company's online platform offers a diverse range of games, including sports betting, slots, table games, and crash-style games, attracting a wide audience of players. Meanwhile, Sun International's traditional casino revenue remains steady, with online gaming revenue surpassing land-based earnings. Leeming emphasized the company's focus on customer experience and the seamless transition between online and physical locations to cater to varying preferences. In the hospitality sector, Sun International saw a 12.3% increase in income, driven by a surge in domestic and international travel post-COVID. The demand for getaway destinations and conference facilities has been strong, with Cape Town and Sun City properties experiencing notable growth in occupancy and room rates. Leeming expressed optimism about the tourism industry's recovery and the positive impact of the new government of national unity on economic stability. He highlighted the potential benefits of reduced load shedding and improved business environment for Sun International's operations. Looking ahead, the company aims to leverage the growing hospitality market through strategic investments and customer-focused initiatives. Despite regulatory challenges, such as the pending Pyrmont acquisition approval, Sun International remains poised for expansion and continued success in the competitive gaming and hospitality sectors.