Sun International earnings rise as SunBet drives growth

JSE-listed hospitality and gaming operator Sun International Limited reported a 7.4% increase in group income (excluding Table Bay Hotel) to R6.6 billion for the six months ended 30 June 2026. This was supported by strong momentum in its digital division and a return to growth across its land-based casinos.

Adjusted headline earnings per share (Aheps) increased 7.9% to 247 cents. Board confidence in the group’s cash generation and five-year value creation plan translated into an interim ordinary cash dividend of 185 cents per share, up 7.6% from 172 cents in the prior comparative period, maintaining the group’s target dividend payout ratio of 75% of Aheps.

Sun International share price

Digital growth and segmental metrics

Online gaming arm Sunbet maintained its position as the group’s key driver of operational growth. Sunbet income surged 35.5% to R1.2 billion, significantly outpacing the estimated national online gaming market growth of approximately 19%. The division’s adjusted Ebitda rose 42.1%, now accounting for 24% of the group’s total adjusted Ebitda.

Land-based casinos expanded overall market share by 2.3 percentage points to 49.0%. Division income grew 1.5% to R3.4 billion, reflecting the deployment of 876 new slot machines and stadium gaming infrastructure, alongside table game execution.

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Group income (excl Table Bay Hotel): R6.58 billion (up 7.4% from R6.13 billion)
Online gaming (Sunbet) Income: R1.18 billion (up 35.5% from R874 million)
Land- based casinos income: R3.42 billion (up 1.5% from R3.36 billion)
Hospitality income (excl Table Bay Hotel): R1.29 billion (up 2.8% from R1.25 billion)
Limited payout machines (Sun Slots) Income: R698 million (down 0.4% from R701 million)
Adjusted Ebitda (excl Table Bay Hotel): R1.59 billion (up 2.0% from R1.56 billion)
Adjusted Ebitda margin: 24.1% (down 1.3 percentage points from 25.4%)
Headline earnings per share (Heps): 283 cents (down 7.2% from 305 cents)
Aheps: 247 cents (up 7.9% from 229 cents)

 Restructuring and labour consultations

To address operational margins across smaller properties under its “Casino Lite” project and centralise corporate technology and marketing functions, Sun International initiated formal consultations in terms of Section 189A of the Labour Relations Act.

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Framing the operational context and long-term execution, Ulrik Bengtsson, CEO of Sun International, stated: “In the first half of 2026, we delivered results at the upper end of our expectations with a 7.4% revenue growth. We are very encouraged by the trajectory we are on, particularly in our land-based casino business, reflecting strong execution and sound investment decisions. While we remain in the early stages of our five-year value creation plan, there is now clear evidence that the initiatives and operational improvements we have put in place are working and are delivering tangible results.”

He added regarding internal restructuring efforts: “Having said that, we also recognise that there is more work to be done and we have initiated multiple productivity initiatives which we expect to see results from in 2027.”

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Capital allocation and liquidity

Capital expenditure grew to R492 million (up from R277 million in HY 2025), reflecting investments in Sun City refurbishments, facility upgrades at Sun Time Square, GrandWest, and Sibaya, alongside digital platform updates for Sunbet. Adjusted Ebitda to free cash flow conversion stood at 47.1%.

Group net debt (excluding IFRS 16 lease liabilities) closed at R5.3 billion, yielding a net debt-to-adjusted Ebitda ratio of 1.6 times, well within the group’s 2.0 times covenant ceiling. Interest cover remained at 8.3 times, with net interest costs dropping 13.6% following the group’s 2025 debt refinancing. During the period, the group repurchased and cancelled 5.1 million ordinary shares for R256 million.

Trading for the initial weeks of the second half of 2026 has started strongly, with revenue growth through 31 August exceeding the group’s full-year guidance range of 6% to 8%.

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