Sun International (JSE: SUI) released its interim results for the six months ended 30 June 2026 on 7 September 2026. Total income reached R6.6 billion, a 7.4% increase on a comparable basis when the Table Bay Hotel is excluded. Adjusted headline earnings per share (HEPS) climbed 7.9% to 247 cents, and the company declared an interim dividend of 185 cents per share, up 7.6% and representing 75% of adjusted earnings.
The group's shares rose 1.87% to 4,892 units after the announcement. Adjusted EBITDA grew 2.0% to R1.6 billion, though the margin slipped 1.3 percentage points to 24.1%. Net debt stood at 1.6 times EBITDA, comfortably below the through‑cycle target of 2.0× and the bank covenant of 2.5×. Liquidity was R1.8 billion and interest cover measured 8.3× against a covenant requirement of 3.0×. Total group debt, excluding IFRS 16 lease liabilities, rose to R5.3 billion from R5.0 billion.
SunBet, the online gaming and sports‑betting arm, was the standout performer. It generated R1.2 billion in total income, a 35.5% year‑on‑year increase, and posted adjusted EBITDA of R415 million, up 42.1%. Online gaming gross gaming revenue surged 43.2% while sports betting grew 10.9%. Active player days rose 32.3% to 5.1 million and first‑time depositors increased 17.5% to 330,000, contributing 24% of group EBITDA.
Land‑based casinos delivered R3.4 billion of income, up 1.5%, with gross gaming revenue up 4.4%. Gross profit fell 0.7% to R2.0 billion, and the segment’s share of total group income slipped to 52% from 54%. Market share improved by 2.3 percentage points to 49.0%. Capital spending on gaming more than doubled to R255 million, supporting the launch of 876 new slot machines and stadium games.
The hospitality segment posted R1.3 billion in revenue, a 7.7% rise, and gross profit grew 9.9% to R570 million. Sun City contributed R1.1 billion, up 9.9%, while the net average daily rate increased 7.4%. Hospitality’s share of total income fell to 19% from 21%.
Limited‑payout machines (LPM Sun Slots) generated R698 million in income, down 0.4%, with adjusted EBITDA declining 8.1% to R148 million. The number of LPMs fell slightly to 5,079 and revenue per machine per day rose 0.2%.
Capital expenditure in the first half totalled R492 million for organic growth and R478 million overall, including R88 million on major refurbishments at Sun City Hotel and the Vacation Club Reserve. Ongoing capex of R390 million was weighted toward gaming (R255 million) and technology (R67 million). The company guided total capex for the year at R900 million to R1.2 billion.
Free cash flow was R748 million, representing a 47.1% conversion of adjusted EBITDA. Disposal proceeds amounted to R265 million, mainly from the sale of Sibaya (R215 million) and Swaziland assets (R50 million). Sun International completed the first year of its share‑buyback programme, repurchasing 2% of its December 2025 issued share capital for R256 million.
Strategically, Sun International is shifting toward a digitally led, omnichannel gaming model. The "Casino Lite" initiative targets underperforming assets at Meropa, Windmill and Golden Valley with a low‑cost operating approach, alongside Section 189A retrenchment consultations. The long‑term scorecard aims for 6‑8% revenue CAGR, a 29% adjusted EBITDA margin and ROIC above 20% by 2030, with free‑cash conversion of 55‑60%. The H1 results show revenue growth of 7.4% and a 24.1% EBITDA margin, indicating progress toward those targets.
