Sun International recorded higher income in the first half of 2026 as strong expansion at its online betting business SunBet offset more modest growth across the group’s traditional casino operations.
For the six months ended 30 June, group income excluding the Table Bay Hotel rose 7.4% year-on-year to approximately R6.6 billion. Adjusted EBITDA increased 2% to R1.6 billion, while the adjusted EBITDA margin fell by 1.3 percentage points to 24.1%.
The company attributed the margin pressure partly to higher spending on technology, customer acquisition and operational capabilities, alongside inflation-related costs. Adjusted headline earnings per share nevertheless increased 7.9% to 247 cents.
SunBet continues to outpace the wider market
SunBet was the main growth engine during the period, with income climbing 35.5% to R1.18 billion. Sun International said the performance was well ahead of estimated South African online gambling market growth of around 19%.
Activity across the platform also strengthened. Active player days increased 32.3%, while the number of first-time depositors grew 17.5%.
Sun International has continued investing in proprietary technology for the platform, including a new interface introduced in South Africa and Botswana. Casino and slots remain important contributors to SunBet’s expansion, while the company has also reported improving momentum within online sports betting.
The performance supports Sun International’s broader strategy of developing a larger digitally led omnichannel gambling business. The company previously outlined ambitions to significantly increase SunBet’s share of South Africa’s online market.
Land-based casinos regain momentum
Sun International’s physical casino business also returned to growth following several weaker years. Segment income increased 1.5% to R3.42 billion, while the company’s share of the South African land-based casino market increased by 2.3 percentage points to 49%.
Land-based gross gaming revenue increased 4.4%, supported by additional product and marketing investment. The group introduced 876 new slot machines and stadium gaming products during the half-year period.
However, heavier marketing expenditure weighed on profitability, with land-based gross profit declining 0.7% to around R2 billion.
Hospitality income increased 2.8% to R1.29 billion, despite approximately R20 million of cancellations attributed to the impact of international conflicts.
Investment rises as Sun International focuses on efficiency
Capital expenditure increased sharply to R492 million from R277 million a year earlier as Sun International accelerated its five-year investment programme. Spending included refurbishment projects at Sun City, Time Square, GrandWest and Sibaya, together with further investment in SunBet’s digital infrastructure and platform.
The group generated an adjusted EBITDA-to-free-cash conversion rate of 47.1%. Sun International expects that figure to move towards its longer-term target of between 55% and 60% as its major investment programme progresses.
Debt excluding IFRS 16 lease liabilities increased from R5.0 billion at the end of 2025 to R5.3 billion, although net debt remained at 1.6 times adjusted EBITDA. The company also declared an interim dividend of 185 cents per share, up 7.6% year-on-year.
Alongside its growth investment, Sun International is preparing a more centralised and lower-cost operating structure. Consultation procedures have begun in some parts of the business, including processes governed by Section 189A of South Africa’s Labour Relations Act, which covers large-scale retrenchments. The company said it intends to retain or redeploy affected employees where practical.
Sun International has also introduced its “Casino Lite” model at smaller underperforming properties, targeting improved operating margins through changes to gaming and hospitality operations.
Trading remained strong after the reporting period. By 31 August, second-half revenue growth was running above the group’s previous guidance range of 6% to 8%. Sun International expects its efficiency initiatives to begin delivering more visible benefits from 2027.