Sun International, a leading gaming and hospitality company, has reported robust financial results for the year 2021. The company’s total revenue reached ZAR 8.73 billion, marking a substantial increase of 37.6% compared to the previous year. This growth was primarily driven by the gradual easing of lockdown restrictions, particularly in March 2021, which had a positive impact on the company’s gaming and casino sectors.
Revenue Breakdown:
Gaming Revenue: Sun International’s gaming revenue accounted for ZAR 6.63 billion, reflecting a remarkable 31% increase from the previous year. This surge in gaming income contributed significantly to the company’s overall revenue growth.
Other Revenue: The company also saw growth in other revenue streams, with a 19.3% increase to ZAR 1.1 billion. This diversified income helped bolster Sun International’s financial performance.
Casino Income: Casino operations generated ZAR 4.72 billion in revenue, underlining the importance of this segment within the company’s overall business.
Alternate Gaming Income: Sun International’s alternate gaming income, which includes Sun Slots and SunBet, showed strong growth, reaching ZAR 1.42 billion, a notable increase of 39.1%. Sun Slots contributed ZAR 1.24 billion, while SunBet’s revenue amounted to ZAR 182 million. SunBet also experienced a 41% increase in new player acquisitions compared to 2020.
Insurance Receipts: Sun International received ZAR 522 million in insurance receipts, which included ZAR 517 million related to Covid-19 interruption claims and ZAR 5 million for other business interruption claims. There were no comparative receipts for 2020.
Geographical Revenue Distribution:
Sun International’s revenue was geographically distributed, with ZAR 7.70 billion generated in South Africa, representing a year-on-year growth of 28.3%. The remaining revenue came from the rest of the world, demonstrating the company’s diversified market presence.
Operating Costs and Profit:
Operating costs for the year amounted to ZAR 7.02 billion, showing a 5.4% reduction compared to the previous year. Employee costs were the largest expense, totaling ZAR 1.67 billion, reflecting an increase of ZAR 62 million year-on-year.
Levies and VAT: Levies and VAT related to casino income reached ZAR 1.56 billion, reflecting a notable increase of 34.7%. Depreciation and amortization expenses amounted to ZAR 863 million, which was ZAR 58 million lower than in 2020.
Profit and Taxation:
The strong financial performance resulted in an operating profit of ZAR 1.30 billion, marking a significant improvement of ZAR 2.68 billion compared to the previous year, which had incurred a loss. Other costs amounted to ZAR 823 million, partially offset by ZAR 88 million in other income.
After considering tax expenses of ZAR 192 million, the net profit for the year was ZAR 382 million. Factoring in ZAR 2 million in losses from discontinued operations, the total net profit for the year reached ZAR 380 million, showcasing a substantial increase of ZAR 2.80 billion compared to the previous year.
Sun International’s impressive financial results for 2021 reflect a strong recovery from the challenges posed by the Covid-19 pandemic. The company’s focus on gaming, casino operations, alternate gaming income, and stringent cost management contributed to its substantial revenue growth and profitability. This performance positions Sun International as a resilient player in the gaming and hospitality industry.