Hospitality and gaming group Sun International says its full-year earnings were boosted by improved online gaming revenue while its smaller regional casinos struggled.
For the year to end-December, the company said on Monday it expected headline earnings per share (HEPS) for the year to end-December to increase by 14.1%-19.8% to 485c-509c.
It attributed the growth to its diversified portfolio and “omnichannel strategy”, which had seen notable earnings growth in Sunbet, an online slots and sports betting platform.
“Sunbet, in particular, has sustained its impressive growth trajectory and is poised to exceed its ambitious growth targets,” the company’s statement reads.
It said it was ahead of the curve in its plans to grow Sunbet’s earnings before interest, tax, depreciation and amortisation (ebitda) to R900m by 2028.
While its urban casinos showed a stable year-on-year performance, driven by growth in larger urban casinos, smaller casinos remained “under pressure”.
Sun International said income growth in Sun Slots was constrained “by changing gaming dynamics”, while it remained focused addressing the downturn.
The company, whose flagship resort Sun City runs alongside the Pilanesberg mountains in the North West province, reported “strong growth” in its hospitality revenue.
It said it had progressed in its plans to reduce gearing, with net debt cut from R5.7bn to R5.2bn during the year.
Sun International’s share price was up 6% at R40.34 by 4.30pm. The company’s final results are due out on March 17.
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