Sun International, a leading South African resort operator, has announced its financial results for 2021. The company achieved impressive revenue growth and a significant increase in profits, driven by various factors.
Revenue Surge: ZAR8.33bn in 2021
– Revenue for Sun International in 2021 reached ZAR8.33bn, representing a remarkable 37.6% increase compared to the previous year.
– The easing of lockdown restrictions in March 2021 played a vital role in driving the revenue growth.
Gaming Dominates Revenue Stream
– Gaming contributed ZAR6.63bn to Sun International’s total revenue, indicating a substantial 31% rise compared to 2020.
– Other revenue sources also showed promising growth, increasing by 19.3% to reach ZAR1.1bn.
Casino Income: ZAR4.72bn and Alternate Gaming Revenue Surge
– Casino income amounted to ZAR4.72bn, showcasing the significant contribution of this segment to Sun International’s overall revenue.
– Alternate gaming income, including Sun Slots and SunBet, experienced a remarkable surge of 39.1%, reaching ZAR1.42bn.
– Sun Slots generated ZAR1.24bn, while SunBet recorded revenue of ZAR182m.
– SunBet also witnessed a notable 41% increase in new player acquisitions compared to the previous year.
Diversified Revenue Sources: Insurance Receipts
– Insurance receipts, which encompassed COVID-19 interruption claims and other business interruption claims, amounted to ZAR522m.
– Sun International received ZAR517m in COVID-19 interruption claims, indicating the financial impact of the pandemic on the company.
Geographical Breakdown: South African Revenue
– South African revenue accounted for ZAR7.70bn, marking a substantial 28.3% year-on-year increase.
– The remaining revenue was generated from international operations.
Operating Costs and Profit Analysis
– Operating costs for Sun International totaled ZAR7.02bn, representing a 5.4% decrease from the previous year.
– Employee costs were the largest expense, rising to ZAR1.67bn, a year-on-year increase of ZAR62m.
– Levies and VAT on casino income reached ZAR1.56bn, indicating the regulatory and tax obligations faced by the company.
– Depreciation and amortization expenses stood at ZAR863m, ZAR58m lower than in 2020.
– Despite operating costs, Sun International achieved an operating profit of ZAR1.30bn, a significant improvement from the previous year’s loss.
Profit Before Tax and Net Profit
– Other costs amounted to ZAR823m, partially offset by ZAR88m in other income.
– The profit before tax soared to ZAR574m, a significant increase of ZAR2.17bn.
– After considering taxes and losses from discontinued operations, the net profit for the year reached ZAR380m, an impressive ZAR2.80bn improvement.
Sun International’s financial results for 2021 reflect a remarkable recovery and growth trajectory for the company. The significant increase in revenue, driven by robust performance in gaming and alternate gaming segments, highlights Sun International’s resilience in a challenging market environment. The company’s strategic focus on diversification and operational efficiency has contributed to its improved profitability. As Sun International looks to the future, it will continue to capitalize on emerging opportunities, enhance customer experiences, and maintain its position as a leading player in the resort and gaming industry.