South Africa’s largest casino operator, Sun International, has announced full-year results with increased revenue and adjusted EBITDA, plus a sharp reduction in group debt.
The good report comes despite the impact of Covid-19 restrictions on its operations, said CEO Anthony Leeming. “Through the pandemic, the group hasd fundamentally re-evaluated how it operates, with a focus on efficiencies and permanently eliminating cost inefficiencies and a renewed strategic intent.
“Our unique omnichannel offering across casinos, limited payout machines, online gaming, sports betting, resorts and hotels provides an integrated premium gaming and leisure customer proposition which supported the resilience and recovery of revenue for the group during 2021.”
Gaming makes up 80 per cent of revenue at Sun and recovered sharply as the lockdown restrictions were lifted. Income from operations increased by 29 per cent and the adjusted earnings rose by R110m. Group EBITDA was up 80 per cent and the profit before tax was R256m.
The group repaid R541m of debts in the financial year. Casino income was up 22 per cent compared with 2020 and casino operations generated adjusted EBITDA of R1.4bn for the year. The group’s LPM operation consists of 4,652 machines.
Total revenue from the year rose 29 per cent from R6bn to R78bn and EBITDA was R1.6bn.