Sun International Reports 5.5% Income Growth in 2023
Date: 2024-03-20 Author: Dima Zakharov Categories: EVENTS
Sun International's Strong Financial Performance in 2023
Sun International, one of South Africa's leading gaming and hospitality companies, has announced a notable 5.5% rise in income, reaching ZAR12.10 billion in 2023. The boost in income, attributed to a stellar performance by the SunBet sportsbook brand, demonstrates the company's robust omni-channel portfolio and disciplined strategy execution.
Mixed Results Across Segments
While Sun International witnessed growth in certain segments, others experienced declines. The standout performances include a record-breaking achievement by SunBet and a substantial 14.8% increase in income from the Sun City casino. However, various casino properties faced declines, primarily due to factors like "load shedding," impacting slots operations.
Strategic Expansion and Acquisition
Despite challenges, Sun International expanded its portfolio by acquiring Peermont in December, a deal worth ZAR7.30 billion. This acquisition encompasses the Emperors Palace resort and the online brand PalaceBet, further solidifying Sun International's market presence and revenue streams.
Positive Outlook for 2024
Sun International remains optimistic about the future, with promising signs in early 2024 trading levels, especially in the success of SunBet operations. The company anticipates continued growth, driven by its resilient omni-channel strategy and the expansion of its business ventures.
Financial Breakdown and Profitability
In 2023, gaming constituted the primary income source, with a significant portion generated from slots despite a slight decline. However, tables income and revenue from non-gaming operations witnessed growth, contributing to the overall positive financial performance.
Improved Profitability and Future Prospects
Despite increased costs, Sun International reported an improved operating profit and a substantial rise in pre-tax profit and net profit for the year. With a strong balance sheet and strategic planning, the company aims to sustain its momentum, deliver value to shareholders, and ensure continued growth in the foreseeable future.
