Sun International (JSE: SUI / FRA: RY1B): On a Roll as Casino Gamblers Return Plus New Market Expansion Plans

Sun International South Africa (Pty) Ltd (JSE: SUI / FRA: RY1B) is a South African resort company who pioneered casino gaming in Southern Africa and owns the iconic Palace of The Lost City at Sun City. With COVID out of the way, gamblers have returned plus the Company is expanding into new markets e.g. they have online sports betting and casino licenses to operate in other African markets.

(Note: See Grand Parade Investments (JSE: GPL): A Horseracing Enthusiast Takes Control of a Solid Casino Gaming Platform Ready for Buildout – GPL was founded in 1997 for the purpose of partnering with Sun International as its primary black economic empowerment partner in the Western Cape).

OVERVIEW:

Sun International is involved in the gaming, hospitality, and entertainment industries, with diverse assets – including world-class five-star hotels, modern and well-located casinos, and some of the world’s finest premier resorts.

The Company has created some of the world’s most iconic destinations, from The Palace of The Lost City at Sun City and Time Square in Pretoria, to The Table Bay Hotel in Cape Town and Carnival City in Brakpan. Each unique property features creative architecture, blending design with the nuances of the local environment.
The Palace of the Lost City | South Africa Family Holiday (Youtube) 2:04 Minutes (Sud Africa Safaris) December 2016

Sun International pioneered gaming in Southern Africa, introducing casinos in the late 1970s. Sun City set the standard for large-scale international events in South Africa – a tradition which continues today. The Gary Player Country Club at Sun City is home to the Nedbank Golf Challenge, which has attracted the world’s best golfers for four decades.
Experience everything under the sun (Youtube) 1:37 Minutes (Sun International) March 2023

RECENT FINANCIALS / NEWS:

2022 Integrated Annual Report

Watch: Sun International’s profit more than doubles (Youtube) 6:58 Minutes (Business Day TV) March 2023
- Sun International has more than doubled its full-year profit, with headline earnings per share coming in at 226 cents. The performance comes as the casino, gaming, and hotel group benefitted from a rebound within the travel industry, as pandemic related restrictions eased. Business Day TV unpacked the results with company’s CEO Anthony Leeming.

WATCH: Stock Picks – Southern Sun, City Lodge and Sun International (Youtube) 6:58 Minutes (Business Day TV) May 2023
- On this episode of Stock Picks, Anthony Clark from Small Talk Daily discusses Southern Sun, City Lodge and Sun International.

Sun International on a roll as gamblers spend big after pandemic (IOL) March 2023
- Sun International said load shedding knocked its costs, with diesel expenses of between R12 million and R14m a month, with about a 20% offset saving in electricity.
- Looking ahead, Sun International said it would expand into new markets, with a 70% investment in SunBet Africa Holdings, for a consideration of $3.2m (roughly R58m).
- “The company has online sports betting and casino licenses to operate in Ghana, Zambia and Kenya. We are in the early stages of rolling out the SunBet operating model and brand in these markets, which have attractive long-term growth potential,” [CEO Anthony] Leeming said.
- The group said SunBet was achieving record numbers in terms of revenue and all key indicators, and would deliver another step change this year.
WATCH: Trade Of The Week | Shoprite | Sibanye-Stillwater | Sun International (Youtube) 13:31 Minutes (Business Day TV) March 2023

Watch: Sun International resumes dividend payments (Youtube) 13:31 Minutes (Business Day TV) August 2022
- Sun International has declared its first dividend in six years. The hospitality group declared a payout of 88 cents, after returning to profitability and delivering adjusted headline earnings of R438 million. It’s performance was supported by an improved operating environment and a significant recovery in gaming income from casinos. Business Day TV discussed the company’s interim performance with CEO Anthony Leeming.

KEY RATIOS:

P/E (Google Finance): 16.54 / Trailing P/E (Yahoo! Finance): 16.79 (no trailing P/E)
Dividend Yield (Google Finance): 6.49% / Forward Dividend & Yield (Yahoo! Finance): 12.47%

1 YEAR CHART:

LONG TERM CHART:

ADDITIONAL RESOURCES:

Website
Investor Relations
Wikipedia
Experience everything under the sun (Youtube) 1:37 Minutes (Sun International) March 2023
2022 Integrated Annual Report
Watch: Sun International’s profit more than doubles (Youtube) 6:58 Minutes (Business Day TV) March 2023
Sun International on a roll as gamblers spend big after pandemic (IOL) March 2023
WATCH: Stock Picks – Southern Sun, City Lodge and Sun International (Youtube) 6:58 Minutes (Business Day TV) May 2023
WATCH: Trade Of The Week | Shoprite | Sibanye-Stillwater | Sun International (Youtube) 13:31 Minutes (Business Day TV) March 2023
Watch: Sun International resumes dividend payments (Youtube) 13:31 Minutes (Business Day TV) August 2022
The Palace of the Lost City | South Africa Family Holiday (Youtube) 2:04 Minutes (Sud Africa Safaris) December 2016

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