Sun International, an operator of hotels and casinos, anticipates a significant profit increase in the six months that ended in June.
During that time, Sun International benefited from a continued tourism recovery as well as record sales at SunBet, its online sports betting operation. Nevertheless, since the Nigerian naira’s depreciation, its performance has been fairly limited. Sun International 2022 Profit
According to the group, which produced R231 million in this profit Metric in the previous year, headline profits per share are anticipated to increase in a range between 73% and 98% in the six months leading up to the end of June. However, after taking an R39 million accounting blow due to dollar-denominated loans for its Nigerian company, it stated that adjusted headline earnings are only likely to increase by as much as 12%.
According to the group, SunBet achieved record revenue and was “well on its way to achieving the aggressive growth targets set for this business”, Maintaining net debt at a similar level through 2022 was made possible by cash flow and careful capital management.
Nearly R8 billion in total debt, including leasing obligations, including R700 million in Nigeria, was owed by the corporation at the end of 2022. It also has cash reserves of about R380 million
Sun stated that its hotels and resorts had an “exceptional first half,” and urban casinos kept generating more money, despite load shedding having an adverse effect on their small-scale slot machine operation, Sun Slots. Sun International 2022 Profit
The Maslow in Sandton, the Wild Coast Sun in the Eastern Cape, the Table Bay Hotel, and Sun City in the North West are the four resorts and hotels run by Sun International, which is valued at roughly R9 billion on the JSE. Additionally, it runs nine urban casinos, including Carnival City in Gauteng and GrandWest in the Western Cape, with at least one in every province but Mpumalanga. The Federal Palace, a hotel and casino owned by the corporation, is located in Nigeria. Recently, the central bank of that nation permitted a significant currency devaluation, which hurt Sun International.
In 2022, when Nigeria accounted for less than 2% of total revenue, casino revenue, along with SunSlots and SunBet revenue, accounted for nearly 80% of total revenue.
The adjusted profit indicator was the one to watch, according to Muneer Ahmed, an equities analyst at Denker Capital. It was unfortunate that load shedding was hurting the slots industry, and the recovery in urban casinos had also been delayed.
Nonetheless a decent performance in a tough operating environment.
Sun International had made very good progress on debt over the past 18 months, but in a high interest rate environment, it would be good to see a reduction in debt.he said.
Sun’s share price rose by about 3% in morning trading, and it has gained more than a fifth over the past year.
Source: News24.com Sun International 2022 Profit