Sun International returns to profitability

Sun International, a leading player in the gaming industry, has reported a return to profitability as its gaming income reached 2019 levels in January and February this year, signaling a slow but steady recovery from the impact of government lockdowns due to the COVID-19 pandemic. The company's Chief Financial Officer, Anthony Leeming, spoke to CNBC Africa about the initiatives that have enabled the company to survive and the path ahead for the business. Leeming highlighted the sustainability of cost savings, emphasizing that the company's improved cash flow in 2021 compared to 2019 is a testament to their efforts. The company's focus on investing in its properties, with over 500 million spent on asset refurbishments, has positioned Sun International for future growth. Leeming expressed confidence in the company's operational efficiency and customer service improvements, attributing the cost savings to better business practices. While uncertainties remain regarding government regulations and restrictions, Leeming remains optimistic about the company's performance, especially with the recent easing of the curfew allowing for extended trading hours for casino operations. The gradual reopening of the economy is expected to further boost Sun International's revenue and operational capacity. Looking ahead, the company anticipates a strong rebound in international tourism, particularly as COVID-19 restrictions ease and travel demand increases. Leeming acknowledged the indirect impacts of global events, such as the conflict between Russia and Ukraine, on the company's operations but remains focused on the long-term growth potential of the business. Despite challenges in the international market, Sun International remains optimistic about the future market prospects. Additionally, Leeming addressed the potential return of dividends to shareholders, hinting at imminent payouts as the company's financial performance continues to improve. The rise of online gaming and sports betting has been a significant driver of revenue for Sun International, with income levels nearing those of 2019. The company sees promising growth opportunities in the online gaming sector, positioning itself as a leading brand in the industry. With a focus on innovation and adaptability, Sun International is poised for continued success in the evolving gaming landscape.