Sun International delivers strong full-year performance

Sun International, a leading hospitality and gaming company, reported an exceptional performance in the 2022 financial year, more than doubling its annual profit. The strong recovery in resorts and hotels following the Covid-19 lockdowns that limited travel played a significant role in the company's success. The group also recorded robust revenue in its casino operations, with the online gaming business Sunbet delivering a record performance. Anthony Leeming, the CEO of Sun International, shared insights into the company's outstanding year in an interview with CNBC Africa. Reflecting on the reporting period, Leeming acknowledged the challenges the company had faced in recent years but expressed satisfaction with the positive outcomes achieved. He attributed the success to the hard work and resilience of the team at Sun International, highlighting the resilience of the business amidst the uncertainties brought about by events such as the Omicron variant and cancellations at the start of the year. Leeming noted that despite the initial hurdles, the company saw a significant uptick in business across various segments, including casinos, online gaming, hotels, and resorts, with strong demand from both local and international leisure travelers. The surge in conferencing business further bolstered the company's performance, with events like the Forbes Africa conference held at Sun International's Times Square facility showcasing the rebound in the conferencing sector. The shift in consumer preferences towards experiences and holidays over retail spending has benefited Sun International and its sector, as highlighted by Leeming. While acknowledging the finite nature of consumer resources and potential challenges such as inflation and interest rates, Leeming remained optimistic about the company's outlook, citing the resilience of casino revenue and opportunities for growth in online gaming markets in Africa. Despite potential challenges like load shedding impacting operations, Sun International has introduced an energy plan to mitigate costs and ensure business continuity. The company's focus on diversification and expansion into online gaming markets in Africa, particularly in countries like Zambia and Ghana, underscores its long-term vision and commitment to capitalizing on emerging opportunities. By investing in online platforms with relatively lower infrastructure costs and flexible operational expenses, Sun International aims to tap into the growing online gaming market in Africa. With a strategic approach to market penetration and a modest initial investment of three and a half million dollars, Sun International plans to test and scale its online gaming operations in these markets, leveraging partnerships with mobile operators for targeted marketing strategies. The company's emphasis on cost-efficient growth and adaptive strategies positions it for sustainable success in the dynamic hospitality and gaming industry. Despite external challenges and regional uncertainties, Sun International remains confident in its ability to navigate complexities and drive continued growth for the benefit of its shareholders.