Sun International, renowned for its ownership of prominent establishments like Sun City and the Wild Coast Sun, has experienced a noteworthy growth in profits for the half-year ending in June. This success is largely attributed to a thriving tourism sector and an extraordinary revenue influx from its online sports betting division, SunBet. Yet, the devaluation of the Nigerian naira cast a small shadow over this achievement.
The conglomerate forecasts its headline earnings per share to rise dramatically, ranging from 73% to 98% for the half-year concluding in June. In contrast, the previous year's report showcased a profit of R231 million. Nevertheless, due to a R39 million accounting drawback stemming from dollar-denominated loans in Nigeria, the company predicts a growth of only up to 12% in its adjusted headline earnings.
Muneer Ahmed, an esteemed equity analyst from Denker Capital, stressed the importance of the adjusted profit metric. While acknowledging the challenges brought by power outages and the steady recovery of urban casinos, he stated, "A commendable show in a challenging operational setting." Ahmed also emphasized that while Sun International has made impressive progress in debt reduction recently, further reductions would be advantageous in a high-interest- rate environment.