We have a compelling investment opportunity with significant potential for scale, growth and returns.
In delivering on our strategic performance, the group focuses on its profitability; strong cash generation; sustainable growth; shareholder returns; supported by Sustaining Sun as depicted alongside.
Delivering on our investment proposition
SUSTAINABLE GROWTH
- Group income shows sustained growth
- Another record growth year for SunBet ahead of its 5-year target
- Protected strong urban casino market share
- Increased revenue and profit contribution from hotels and resorts
PROFITABILITY
- SunBet achieved an adjusted EBITDA margin of 30.2% up from 12.4%
- SunBet marketing resulted in sign-ups per day increasing from c.450 thousand to nearly 2 000 sign-ups with 176 thousand first time depositors
- Achieved record earnings from Sun City with adjusted EBITDA margin improvement from 17.8% to 24.2%
- Adjusted headline earnings per share (AHEPS) up 5.9% to 468cps
STRONG CASH GENERATION
- Cash generated by operations to free cash conversion (post capex) of 65.4%
- Adjusted EBITDA to cash generated by operations conversion of 107%
- Debt within target levels on the back of increased profitability and disciplined capital allocation
- Net debt: adjusted EBITDA below the 2x long-term target at 1.7x
SHAREHOLDER RETURNS
- Dividend pay-out ratio maintained at 75% of AHEPS
- 148cps interim cash dividend paid
- Final dividend of 203cps declared
- Total dividend of 351cps compared to 329cps in 2022
SCALING THE GROUP
- Scaling the group through the proposed acquisition of Peermont
- Expected to rapidly degear, while dividend is maintained
- Overall improved cash flow generation and lower pro-forma combined cost of funding
- Improved capital markets visibility
SUSTAINING SUN
- ESG strategy embedded within the business
- First Sustainable Linked Loan in our industry in South Africa
- Skilled and passionate people
Attracting and retaining customers
- Strong brand loyalty
- Quality portfolio base with iconic properties
- Innovative rewards programme
- Informative customer data
- Enhanced customer relations management approach
Alternative energy strategy in place
Brand enhanced through external recognition
- Achieved first place in the South African Breweries Beyond Awards - Sustainability Report Of The Year
- Received the Gender Iconic Standard Bank Top Women Awards