South Africa’s Sun International, the major casino group, has reported group revenue up by 12 per cent and EBITDA by 13 per cent and at the same time announced that it is to close loss-making operations.
The year-end results included revenue attributable to the results from Sun Dreams, Sun Slots and Time Square, all acquired during 2016/17. EBITDA grew from a nine per cent decline in the first half to a 15 per cent growth in the second.
The company’s CEO Anthony Leeming said that the board had taken action to address underperforming operations and to focus on cost controls and increasing efficiency. “We have made significant investments over the last few years in both South Africa and Latin America," he said.
"The refurbishment of Sun City and the acquisition of Sun Slots have met expectations, but economic growth in South Africa and LatAm has slowed, political uncertainty has increased and social challenges, particuarly in South Africa, are at an all-time high. This has created the perfect storm, putting pressure on consumer spending and slowing gaming revenue growth.”
