In the first half of 2025, Sun International, under the leadership of CEO Ulrik Bengtsson, reported a significant uptick in group revenue, driven primarily by its burgeoning online business. The South African gaming and hospitality group announced a 3% increase in revenue for the six months ending June 30, totaling ZAR6.19 billion ($353 million), surpassing the ZAR6 billion recorded in the same period last year.
The online division, represented by Sunbet, emerged as the shining star in this performance report, with a remarkable 70% year-on-year revenue growth. This starkly contrasted with the more modest single-digit growth observed in the company’s traditional land-based segments. Bengtsson highlighted the iGaming sector’s standout performance and reiterated Sun International’s intent to intensify its focus on this segment. The goal, he articulated, is to position Sunbet as the dominant force in the South African online gaming market, potentially through strategic mergers and acquisitions.
Sunbet, he noted, continues to exhibit robust performance amid a rapidly expanding market. However, he acknowledged the journey ahead, emphasizing the vast opportunities to scale and invest further in the business. The company’s unique advantage lies in leveraging the extensive resources of the group to enhance its iGaming offerings. The overarching aim remains to cement Sunbet’s status as the leading and most trusted online gaming operator across southern Africa. Bengtsson expressed a willingness to pursue selective acquisitions to bolster scale, diversify geographically, and access cutting-edge technology.
Delving deeper into the online growth narrative, Sunbet’s revenue for the period reached ZAR871 million, reflecting a 70% increase from the previous year’s ZAR512 million. The overall activity within all product verticals experienced a notable uptick. Total iGaming deposits surged by 105% year-on-year, and there was a 44% increase in first-time depositors. Additionally, the number of unique active players on the Sunbet platform rose by an impressive 71%.
On the other hand, Sun International’s urban casino segment faced challenges, with a 1% decline in revenue to ZAR3.24 billion amidst mounting pressures in the land-based gaming sector. In response, the group is reassessing its portfolio strategy to foster long-term stability. Investments are being made in casino floor optimization, service improvements, product innovation, and enhanced marketing strategies aimed at better converting foot traffic. This, coupled with a strong focus on customer acquisition and retention strategies, is anticipated to support income stabilization in the medium term.
The resorts and hotels division saw a slight revenue increase of 4% to ZAR1.32 billion, while the Sun Slots business, which encompasses physical slot machine operations, posted a modest 2% revenue rise to ZAR701 million. The remaining ZAR60 million in revenue stemmed from activities in Chile, the rest of Africa, and the temporarily closed Table Bay Hotel undergoing major renovations.
Despite these gains, Sun International’s cost structure posed challenges. Across-the-board spending increased, particularly in staffing, levies, and VAT, resulting in a 6% year-on-year decline in operating profit to ZAR1.12 billion. Nonetheless, the company managed to offset a portion of these costs through finance-related income, with pre-tax profit rising by 26% to ZAR1.06 billion compared to the first half of 2024. Net profit from continuing operations, after taxes, reached ZAR804 million, marking a 37% increase.
However, the picture changed when discontinued operations were factored in. In 2024, these operations contributed ZAR343 million in profit, a figure that plummeted to just ZAR8 million this year. After also accounting for fair value adjustments for listed shares, taxes, and foreign currency translation impacts, the bottom-line net profit was pegged at ZAR748 million, representing a 15% decrease from 2024.
Bengtsson remarked on the diversified nature of Sun International’s portfolio, which presents distinct opportunities for growth. The group is positioned favorably for sustainable expansion, supported by the optimization of urban casinos, strong momentum in digital conversion for Sunbet, selective expansion in Sun Slots, and the usual seasonal uptick in resorts and hotels. The strategy involves continuous improvement of infrastructure and casino offerings while seeking growth in selected regulated African markets for Sunbet.
He underscored the importance of driving growth in free cash flow while maintaining disciplined capital allocation. This approach is central to maximizing value and aims to strike the right balance between returns to shareholders, investment in the business, and value-adding mergers and acquisitions.
Joining Sun International in March, Bengtsson brought a fresh perspective after a hiatus from the industry, ready to steer the company into the future of gaming and entertainment. As the landscape of the gaming industry continues to evolve, Sun International remains committed to leveraging its strengths and navigating the challenges and opportunities that lie ahead.
Topics: Mergers and Acquisitions · Land-Based Casinos · Gambling Taxes · Financial Results · Online Casino · Slots
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