Sun International released its full-year results for the 2021 financial year today (Monday, March 14), which show strong growth in revenue and adjusted EBITDA and a significant reduction in group debt, despite the substantial impact of COVID-19-related restrictions on operations.
Sun International CE, Anthony Leeming, remarked: “Through the COVID-19 pandemic, the group has fundamentally re-evaluated how it operates, with a focus on efficiencies, and permanently eliminating cost inefficiencies and a renewed strategic intent.
“Sun International’s unique omni-channel offering across casinos, Limited Payout Machines, online gaming, sports betting, resorts and hotels, provides an integrated premium gaming and leisure customer proposition which supported the resilience and recovery of revenue for the group during 2021.”
Key results
- The R650 million (€39.4m) in recurring cost savings embedded during 2020 resulted in margin resilience, even at reduced levels of operation.
- During 2021, casino operations delivered an adjusted EBITDA margin of over 30% despite the restricted trading conditions. Operational restructuring at the group’s hospitality properties resulted in R180m (€10.9m) in annualised cost savings at Sun City alone.
- Total resort and hotel operations income was up 39% in 2021 to R1.559bn (€94.6m) from R1.123bn (€68.1m) in 2020, however income remained 39% below 2019 levels. Overall, the group’s resorts and hotels incurred an adjusted EBITDA loss of R56m (€3.4m) for the year, significantly improved from an adjusted EBITDA loss of R158m (€9.6m) during 2020.
- Sun City Vacation Club proved remarkably resilient throughout the lockdown period, with R185m (€11.2m) in cash generated in timeshare sales during 2020 and 2021.
- The group successfully settled its COVID-19 business interruption claim and has received nett proceeds of R517m (€31.4m).
“We remain optimistic that we are entering a more normalised trading environment despite the ongoing COVID-19 pandemic,” said Leeming.
