Resilient domestic demand for leisure, conferencing, entertainment and gaming services supported Sun International’s performance in the six months ended June 30, with group income rising 7.4% to R6.6 billion and adjusted EBITDA increasing 2% to R1.6bn.
The results exclude the Table Bay Hotel.
Sun International said the performance was supported by stronger customer demand and improved food and beverage offerings. Its flagship Sun City was also a top performer, despite softer international tourist arrivals.
“Resilient domestic demand, and strong activity across conferences, events and entertainment. Sun City continues to be a standout performer, benefiting from refurbished investments, a strengthening events calendar, and growing demand for premium leisure and conferencing experiences,” said CFO Norman Basthdaw during a briefing on Monday.
The group responded to weaker international tourism by targeting domestic and alternative international markets. This helped increase net average daily rates by 7.4%.
However, the business was affected by operational disruptions linked to anti-illegal-immigration protests, temporary site closures and weaker execution in parts of the Western Cape.
Chief executive Ulrik Bengtsson said geopolitical uncertainty, inflationary pressures and the elevated cost of living had prompted the company to focus on financial discipline and execution.
The group continued to benefit from digitalisation, demand for real-life experiences and growth in online betting.
“On regulation, we continue to engage proactively with regulators and policymakers to help shape a sustainable and future-fit national regulatory framework for the industry,” Bengtsson said.
“During the period, we undertook one of the largest capability-building and upskilling programmes in the group’s history. We have made excellent progress, with about 150 key appointments over the past six months.”
Sun International has appointed Vanessa Olver as its new CFO, effective from the beginning of 2027.
Headline earnings per share fell 7.2% to 283 cents, while adjusted headline earnings per share increased 7.9% to 247 cents. The group declared an interim ordinary cash dividend of 185 cents per share, 7.6% higher than the 172 cents paid for the same period last year.
Capital expenditure increased from R277 million to R492m as the group stepped up investment under its five-year value-creation plan.
The spending was directed towards refurbishments at Sun City, as well as growth and refurbishment projects at Sun Time Square, GrandWest and Sibaya. It also included digital and platform investment across SunBet.
Sun International said full-year capital expenditure would remain within its annual framework of R900m to R1.2bn.
Debt increased from R5 bn at December 2025 to R5.3bn at the end of June, after the group returned R1.2bn to shareholders through dividends and share repurchases. It had about R1.8bn in available liquidity.
“Sun International’s priority for the remainder of the year is to continue to drive income growth and market-share gains, and to ensure that the progress achieved across our value-creation plan translates into measurable earnings growth, margin improvement and sustainable returns,” the company said.
“The fact that the group is growing adjusted EBITDA while simultaneously undertaking one of the largest investment programmes in recent years demonstrates the durability of the underlying business model.”
Sun International said trading in the second half of 2026 had started strongly, with revenue growth as at August 31 ahead of its guidance range of 6% to 8%.
THE NATIONAL