Ulrik Bengtsson, the CEO of South African-facing Sun International, said the gaming and hospitality group intended to explore more opportunities in the iGaming space after growth within its online business offset declines elsewhere to push revenue up in H1 of 2025.
Revenue, referred to by Sun International as income, for the six months to 30 June amounted to ZAR6.19 billion ($353 million). This surpassed the ZAR6 billion reported by the group in H1 of last year by 3%.
Sunbet, the group’s online operation, was the segment that reported the most growth in the period – and by some margin. Revenue here jumped 70% year-on-year, whereas some land-based segments only posted single-figure increases.
Bengtsson said iGaming was the standout segment out in H1. He said the company intended to build out its offering with the aim of becoming the online market leader in South Africa. This could involve M&A activity.
“Sunbet continues to perform strongly, being one of the prominent players in a rapidly growing market,” he said. “But we have more work to do with significant opportunities to scale and invest in the business.
“Our key differentiator is our ability to enhance our offerings through the resources of the group. Our goal remains to establish Sunbet as the leading and most trusted online gaming operator in southern Africa.
“We remain open to selective acquisitions in online gaming to enhance scale, geographic diversification and access to technology.”
Online slots revenue more than doubles in H1
Going into more detail on online growth, revenue for the segment reached ZAR871 million, a 70% increase on the ZA512 million in H1 last year. However, activity across all product verticals was up from the previous year.
Total iGaming deposits were up 105% year-on-year, while first time depositors also climbed 44%. In addition, unique active players with Sunbet during H1 increased 71%.
Its urban casino segment reported a revenue dip of 1% to ZAR3.24 billion amid increasing pressure on the land-based sector. Sun International said it was re-assessing its approach to the portfolio to help ensure stability in the long run.
“Investment is being directed toward casino floor optimisation, service enhancements and product innovation as well as improved marketing to better convert footfall,” Sun International said. “This, in combination with a sharpened focus on customer acquisition and retention strategies, is expected to support income in the medium term.”
Elsewhere, resorts and hotels revenue edged up 4% to ZAR1.32 billion, while the Sun Slots business, covering physical slot machine operations, saw revenue rise just 2% to ZAR701 million.
The remaining ZAR60 million in revenue was split between activity in Chile and the rest of Africa, as well as the Table Bay Hotel, which is temporarily closed while major renovation work takes place.
Discontinued operations skew profit comparison at Sun
In terms of costs, spending was higher almost across the board, with staffing and levies and VAT the main outgoings for Sun International. As a result, operating profit declined 6% year-on-year to ZAR 1.12 billion.
Sun International was able to recoup a lot of this from finance-related income, with pre-tax profit coming in at ZAR1.06 billion, some 26% more than H1 2024. After tax, net profit from continuing operations topped ZAR804 million, up 37%.
However, this made for very different reading when accounting for discontinued operations. In 2024, such operations added ZAR343 million in profit, compared to just ZAR8 million this year.
After also including fair value adjustments for listed shares, tax on this and foreign currency translation impact, bottom-line net profit was ZAR748 million. This was 15% less than 2024.
“Sun is a business with a diversified portfolio that has clear and distinct opportunities to drive growth,” Bengtsson said. “The group is well positioned for sustainable growth, supported by the optimisation of urban casinos, strong momentum in digital conversion for Sunbet, selective expansion in Sun Slots and the usual seasonal rebound in resorts and hotels.
“On an ongoing basis, we will continue to improve the infrastructure and casino offering and seek growth in selective regulated African markets for Sunbet.
“We remain focused on driving growth in free cash flow while maintaining a disciplined approach to capital allocation. This approach is central to maximising value and aims to achieve the correct balance between returns to shareholders, investment in the business and value accretive M&A.”
Bengtsson joined the operator in March after spending some time away from the industry.
Sun International said in its H1 results that it is eyeing a market-leading position in South Africa’s iGaming sector. CEO Ulrik Bengtsson said M&A could play a role.