Gaming and hospitality group, Sun International, saw strong growth for the 2021/2022 financial year as overall income was up 33% for the period while a small adjusted EBITDA (earnings before interest, taxes, depreciation, and amortisation) loss was incurred as the group increased its marketing efforts and addressed the staffing structures.
The financial results were announced by Sun International CE, Anthony Leeming, earlier today (March 14), who remarked: “Through the COVID-19 pandemic, the group has fundamentally re-evaluated how it operates, with a focus on efficiencies and permanently eliminating cost inefficiencies and a renewed strategic intent.”
He said Sun International’s unique omni-channel offering across casinos, Limited Payout Machines, online gaming, sports betting, resorts and hotels provided an integrated premium gaming and leisure customer proposition that supported the resilience and recovery of revenue for the group during 2021.
Amongst others, operational restructuring at the group’s hospitality properties resulted in R180m (€9.3m) in annualised cost savings at Sun City alone.
Leeming further noted that, since the easing of the lockdown restrictions, the group’s market share in the competitive Gauteng market increased from 25.47% in 2019 to 27.32% in 2021, while in KwaZulu Natal it remained in line with the prior year.
Total resorts and hotels operations income was up 39% in 2021 to R1 559bn (€80.4bn) from R1 123bn (€57.9bn) in 2020, however income remained 39% below 2019 levels.
Business interruption claim
Leeming highlighted that the group had successfully settled its COVID-19 business interruption claim and had received nett proceeds of R517m (€26.6m).
“We remain optimistic that we are entering a more normalised trading environment, despite the ongoing COVID-19 pandemic,” Leeming concluded.
