Sunbet maintains its position as one of the leading online bookmakers in South Africa according to the group’s parent company.
The latest financial results from Sun International detailed a 61% increase in revenue for the firm’s online sportsbook brand from R733m (£31.3m ) to R1.2bn (£51.2m), while adjusted EBITDA was up 64% from R221m to R361m.
“SunBet continues to present the group with tremendous growth potential, being one of the fastest-growing companies in the online market,” Sun International’s financial statement for the year ended 31 December 2024 read.
This growth was driven by customer acquisition with the number of unique active players on SunBet up 35% and first time depositors up 47.2%. The firm remains confident that this has laid the foundations for ‘sustained profitability’, with new licence acquisitions in the provinces of Mpumalanga, North West and Botswana further solidifying this.
“We intentionally and strategically leverage the Sun International brand, its broad market
presence, and loyalty program to attract new players while retaining our existing customer base.
“Our goal is to establish Sunbet as the leading and most trusted online gaming operator in
southern Africa. In an industry where commoditisation is prevalent, our key differentiator is our ability to enhance our offerings through the vast resources of the group.”
South Africa is one of the continent’s most valuable markets, and is widely considered to have some of the most stable regulations. It is a competitive market, however, with local incumbent SunBet going up against the likes of Betway, MeridianBet, and others.
The company is confident that it has made its offer more appealing to customers by enhancing the iGaming side of SunBet with content from the likes of Aviator, making improvements to its horse racing product and investing in a front-end design for its website.
“These improvements ensure that our customers can interact with Sunbet seamlessly, positioning us well operationally for strong growth,” the firm asserts.
Though generating considerable revenue, SunBet is not the main earner for Sun international, with the firm’s land-based casino division and online casino platform Sun Slots seeing greater revenue contributions – though less growth.
The company’s bricks-and-mortar casinos brought in revenue of R6bn, down slightly from R6.1bn the year prior. While EBITDA was also down slightly by 4% from R3.4bn to R2.3bn, the segment still has the largest revenue share out of all of Sun International’s assets.
Secondly, Sun Slots revenue also dropped by 3% from R1.46bn to R1.41bn with EBITDA also falling 3% to R342m (FY23: R351m). While gaming revenue is clearly the biggest segment for Sun International, it’s clear that betting has more impressive growth margins.
The firm may be banking on Sun Bet to make further gains to continue driving its wider group-performance forward, with the sportsbook brand continuing to take ground in a market where there is strong consumer appetite for sports – football, rugby, cricket and horse racing all having a wide following.
On a group-wide basis, Sun International’s total income at the close of 2024 stood at R12.6bn, a 5% increase on R11.97bn the year prior. EBITDA rose 3% from R3.4bn to R3.5bn, driving a 3% increase in profit to R2.7m (FY23: R2.6m).
Sun International reasserts confidence in its strategy, though it has noted some regulatory changes in South Africa that could prove a challenge. As stated above, South Africa is widely regarded to have some of the most stable betting and gaming regulation in Africa, but like all markets it is not immune to reform and change.
The company, together with other casino stakeholders, has maintained long-term opposition to South Africa’s Tobacco Bill, which will further restrict smoking areas in the country’s casinos – stakeholders are concerned this could impact the customer experience and subsequent profitability.
Sun’s 2024 statement concluded: “The gaming industry is experiencing dynamic changes and Sun International, through its omnichannel strategy, will continue leveraging its strong brand and market presence to retain and expand its customer base.
“Our balance sheet remains robust, providing us with the financial flexibility to invest and to continue paying dividends at our targeted payout ratio. Through strategic planning, efficient capital allocation, cost management, and a focus on operational excellence, Sun International will sustain its growth trajectory and deliver stakeholder value.”
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