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Unaudited Interim Group Financial Results and Cash Dividend Declaration for the six months ended 30 June 2025
Sun International Limited
(Incorporated in the Republic of South Africa)
Registration number: 1967/007528/06
Share code: SUI
ISIN: ZAE000097580
LEI: 378900835F180983C60
("Sun International" or "the Company" or "the group")
UNAUDITED INTERIM GROUP FINANCIAL RESULTS AND INTERIM ORDINARY CASH DIVIDEND DECLARATION FOR THE SIX MONTHS ENDED 30 JUNE 2025
SALIENT FEATURES
- Continuing income* up 6.7% to R6.1 billion
- Continuing adjusted EBITDA* up 1.1% to R1.6 billion with adjusted EBITDA margin at 25.4%
- Sunbet group income up a solid 70.7% to R874 million
- 62.4% of R1.7 billion cash generated by operations converted to free cash
- Debt-to-adjusted EBITDA at 1.5x
- Earnings per share (EPS) down 8.9% to 307 cents per share (cps) (HY 2024: 337 cps)
- Headline earnings per share (HEPS) up 60.5% to 305 cps (HY 2024: 190 cps)
- Adjusted HEPS (AHEPS) up 6.5% to 229 cps (HY 2024: 215 cps)
- Interim ordinary cash dividend of 172 cps up 6.8% (HY 2024: 161 cps) maintaining our 75% of AHEPS dividend payout ratio
* excluding the Table Bay Hotel
Performance overview
Sun International delivered a solid performance for the six months ended 30 June 2025, navigating macroeconomic headwinds and structural shifts in the
gaming sector. The results underscore the strength of the group's diversified portfolio and its increasing focus on an omnichannel approach. The group's
market-leading assets include land-based casinos, online gaming, resorts and hotels and limited payout machines ("LPM").
The group's continuing income increased by 3.2% to R6.2 billion compared to the six months ended 30 June 2024 ("the prior period"). Excluding the impact
of the Table Bay Hotel ("TBH") lease cessation, group continuing income increased by 6.7%. Group continuing adjusted EBITDA declined by 3.8% to R1.6
billion. Excluding the impact of the TBH lease cessation, group continuing adjusted EBITDA rose by 1.1%. The group's adjusted headline earnings grew by
5.9% to R555 million, translating to adjusted headline earnings of 229 cents per share, a 6.5% increase from the prior period.
The Sunbet group maintained its upward trend, with income increasing by 70.7%, driven by increased volume of activity and deposits. The urban casinos had
a muted performance with income declining by 1.4%. Some operational challenges in combination with a casino market that is under pressure will require us
to re-assess our approach to this portfolio of businesses. Excluding the TBH, resorts and hotels revenue was up 4.3% to R1.3 billion on the prior period,
driven by the recovery of conferencing and events. The Sun Slots strategy bore positive outcomes with income improving by 2.2% to R701 million compared
to the prior period.
The group has consistently demonstrated its capability to generate significant cash flow through its diverse portfolio and is in a strong financial position with
debt (excluding IFRS 16 lease liabilities) at R5.0 billion, down from R5.2 billion at 31 December 2024. The debt levels take into account the payment of the
2024 final net dividend of R591 million. Our net interest cost decreased by 15.1% from the prior period as a result of the lower debt and interest rates.
Sun International continues to demonstrate disciplined capital allocation; balancing capital expenditure, shareholder returns and prudent leverage
management. The group maintains a healthy dividend payout ratio while targeting a debt-to-adjusted EBITDA ratio below 2.0x, ensuring financial flexibility
and resilience.
Aligned with its stated dividend guidance of distributing 75% of adjusted headline earnings per share, the board has declared an interim gross cash dividend
of 172 cents per share, amounting to R444 million. This dividend reflects a 6.8% increase over the prior period and underscores the group's commitment to
delivering sustainable value to shareholders.
Outlook
Sun International is a business with a diversified portfolio that has clear and distinct opportunities to drive growth. The group is well-positioned for
sustainable growth, supported by the optimisation of urban casinos, strong momentum in digital conversion for Sunbet, selective expansion in Sun Slots, and
the usual seasonal rebound in resorts and hotels. On an ongoing basis, we will continue to improve the infrastructure and casino offering and seek growth in
selective regulated African markets for Sunbet.
The regulatory environment remains a critical focus area, with Sun International advocating for a balanced framework that aligns the interests of operators,
government, and consumers. Well-calibrated regulation is the most effective safeguard against the proliferation of illegal gambling and is essential to
maintaining a fair and responsible gaming ecosystem.
The group remains open to selective acquisitions in online gaming to enhance scale, geographic diversification and access to technology. We will continue
to find ways in which to optimise and clean-up the portfolio through minority buyouts, where opportune, and redirecting our resources to strategic growth
areas. We remain focused on driving growth in free cash flow while maintaining a disciplined approach to capital allocation. This approach is central to
maximising value and aims to achieve the correct balance between returns to shareholders, investment in the business, and value accretive M&A.
Interim ordinary cash dividend declaration (dividend number 56)
Notice is hereby given that the board has declared an interim gross cash dividend of 172 cents (137.60000 cents net of dividend withholding tax) for the
six-month period ended 30 June 2025 being a 6.8% increase on the prior period's 161 cents, payable to shareholders recorded in the register of the
Company at the close of business on the record date appearing below. The dividend has been declared from cash reserves and therefore does not
constitute a distribution of 'contributed tax capital' as defined in the Income Tax Act, 58 of 1962. A dividend withholding tax of 20% will be applicable to all
shareholders who are not exempt.
The issued share capital at the declaration date is 258 181 057 ordinary shares. The salient dates for the interim dividend will be as follows:
Declaration date Monday, 8 September 2025
Last day to trade cum dividend Monday, 22 September 2025
Shares commence trading 'ex' dividend Tuesday, 23 September 2025
Record date Friday, 26 September 2025
Payment date Monday, 29 September 2025
Share certificates may not be dematerialised or re-materialised between Tuesday, 23 September 2025 and Friday, 26 September 2025, both days inclusive.
Ordinary shareholders who hold dematerialised shares will have their accounts at their CSDP or broker credited or updated on Monday, 29 September 2025.
Where applicable, dividends in respect of certificated shares will be transferred electronically to shareholders' bank accounts on the payment date. Where
the transfer secretaries do not have the banking details of any certificated shareholders, the cash dividend will be held in trust by the transfer secretaries
pending receipt of the relevant certificated shareholder's banking details after which the cash dividend will be paid via electronic transfer into the personal
bank account of the certificated shareholder.
Sun International's tax reference number is 9875/186/71/1.
Changes to the board of directors
The following changes to the Company's board of directors took place during the period under review and were communicated to shareholders via SENS:
- Retirement: Mr AM Leeming retired as an executive director of Sun International but will remain with Sun International until the end of December 2025, as
announced on 24 March 2025 and 1 July 2025.
- Appointment: The board resolved to appoint Mr RU Bengtsson as an executive director and Chief Executive of the Company with effect from 1 July 2025.
Directors' responsibility
This short-form announcement is the responsibility of the board of directors of Sun International.
This short form is a summarised version of the full announcement in respect of the interim results for the six months ended 30 June 2025 and as such, it
does not contain full details pertaining to the Company's interim results. The full announcement can be found on the Company's website:
www.suninternational.com/investors and on the JSE's website at: https://senspdf.jse.co.za/documents/2025/jse/isse/SUI/HY2025.pdf
Any investment decisions should be made based on the full announcement. The information contained in this short form announcement has not been
reviewed or reported on by the Company's auditors.
Presentation
There will be an investor presentation and video pertaining to Sun International's interim financial results made available on the Company's website at
https://corporate.suninternational.com/investors. This will be uploaded on the Company's website at around 08h00 today.
Forward Looking Statements
This document contains forward-looking statements. All statements, other than statements of historical facts, including, among others, statements regarding
our strategy, future financial position and plans, objectives, projected costs, anticipated cost savings, financing plans and projected levels of growth in the
communications markets, are forward-looking statements.
Forward-looking statements can be identified by terminology such as "may", "might", "should", "expect", "envisage", "intend", "plan", "project", "estimate",
"anticipate", "believe", "hope", "can", "is designed to", or similar phrases. However, the absence of such words does not necessarily mean a statement is not
forward-looking. Forward-looking statements involve several known and unknown risks, uncertainties and other factors that could cause our actual results
and outcomes to be materially different from historical results, or any future results expressed or implied by such forward-looking statements. Factors that
could cause our actual results or outcomes to differ materially from our expectations include, but are not limited to, those risks identified in Sun International
financial reports available at www.suninternational.com.
Sun International cautions readers not to place undue reliance on these forward-looking statements. All written and verbal forward-looking statements
attributable to Sun International, or persons acting on behalf of Sun International, are qualified in their entirety by these cautionary statements. Unless we are
required by law to update these statements, we will not necessarily update any of these statements after the date of publication of this document so that
they conform either to the actual results or to changes in our expectations. Any forward-looking information disclosed in these interim results for the six
months ended 30 June 2025 has not been reviewed, audited, or otherwise reported on by our independent external auditors.
Directors
Non-executive
S Sithole (Chairman), GW Dempster (Lead Independent Director), CM Henry, SN Mabaso-Koyana, MLD Marole, TR Ngara, NT Payne*, ZP Zatu Moloi
*British
Executive
RU Bengtsson# (Chief Executive), N Basthdaw (Chief Financial Officer)
#Swedish
Group Company Secretary
AG Johnston
Enquiries
Investor Relations Officer
Nwabisa Titus
Tel: +27 82 800 7721
Email: investor.relations@suninternational.com
8 September 2025
Sponsor
Investec Bank Limited
Date: 08-09-2025 07:45:00
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