Sun International reported significant accomplishments and recorded dividends for 2022. They highlighted a successful combination of increased market share in urban casinos, the reorganization of Sun City, the development of alternative gaming businesses, and cost reductions that led to a significant increase in adjusted earnings to R3.3 billion, a 96% increase over the previous year.
Total adjusted earnings also increased from R110 million to R1.1 billion, and adjusted earnings per share rose from 44 cents to 439 cents. Adjusted EBITDA margin rose from 28.2% to 29.7%, and although the company planned to reach 30%, this was prevented by diesel fuel costs due to a power outage.
City Casinos also posted a 41% increase, and the total City Casinos adjusted EBITDA was R2,445 million for the year. The company resumed paying a dividend due to the improved financial situation, and the total dividend was 329 cents per share for the year, which is 75% of AHEPS.
They also saw significant progress in their online strategy, especially with SunBet, where casino gaming revenues, Sun Slots, and SunBet saw a significant growth of 36%. Sun Slots showed organic growth with more than 5,000 active slot machines, and the company plans to increase that number to 6,500 by working with regulators. Online casino owners note that South Africans are increasingly playing at local online casinos rather than foreign ones. Earlier, before legalization, some gamblers played at Canadian casinos with no deposit bonuses, so they gave generous sign-up bonuses.
The SunBet platform also continued to grow and expand its gaming audience, with an 86% increase in revenue from the previous year and a 135% increase in the second half of the fiscal year. Active players at SunBet are up 50%, and deposits are up 130%. The company plans to invest in Sun.
Bet Africa Holdings is to expand into new markets, and the investment will amount to about $3.2 million, or about R58 million.
Despite difficulties due to the Omicron variant earlier in the year, the company has shown a strong recovery in its resorts and hotels, with domestic tourism, conferences, and events exceeding 2019 levels. The international entertainment business also rebounded in the second half of the year. Total revenue from resorts and hotels was up 65%, and adjusted EBITDA was R450 million, compared with a loss of R56 million the previous year.
Sun International has completed a debt reduction program and is in a good financial position to return to investors. They intend to continue developing their online brands, increasing market share, and expanding into new markets.