South Africans are making their way back to resorts and casinos
Sun International expects a massive boost in profits, with customers flocking to its online betting platform.
In a trading update for the year ended 31 December 2023 (FY23), the group said SunBet consistently achieved record income and even exceeded its own ambitious growth targets.
The group’s resorts and hotels also saw a strong year, which continued into 2024.
Despite a challenging trading environment, the group’s urban casinos and Sun Slots operations showcased resilience.
With this in mind, the group expected basic earnings per share (BEPS) to increase by over 100%, while headline earnings per share (HEPS) are expected to increase by between 82% and 92%.
| Financials | FY22 | FY23 | Change |
| BEPS(cents) | 224 | 477-505 | >100% |
| HEPS (cents) | 226 | 412-434 | 82-92% |
| Adjusted HEPS (cents) | 456 | 456-478 | 4%-9% |
“The primary difference between HE and adjusted HE relates to, inter alia, an increase in the estimated redemption value of the SunWest put option liability of R13 million, transaction costs of R37 million relating to the proposed Peermont acquisition and the impact of the devaluation of the Naira which resulted in a non-cash net accounting adjustment of R35 million on consolidation of the external shareholder loans of the Tourist Company of Nigeria, which are United States Dollar denominated.”
The group said that it is in a strong financial position, with South African debt dropping from R5.9 billion in FY22 to R5.7 billion in FY23. This comes despite the group spending close to a billion rand in dividends while also battling a higher interest rate environment.
The group will release its finalised financial result for FY23 on or about Monday, 18 March 2024.
Read: Sun International moves to buy Emperors Palace in massive acquisition
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