Sun City owner's profit jumps on big betting gains

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Sun International reported a 9.1% rise in first-half earnings on Monday, as record growth in the South African casino and hotel group’s betting business helped drive its income.

The owner of the Sun City resort and Maslow Sandton and Table Bay high-end hotels said adjusted headline earnings per share – its main profit measure – rose to 2.15 rand ($0.1201) in the six months to June 30, from 1.97 rand a year earlier. Shares were trading 3.35% higher at 1014 GMT on the results.

Sunbet was the stand-out with a 71.8% rise in income to 512 million rand. Sun International, which achieved mixed results across its segments, said in a statement its urban casino income – its biggest revenue generator – was flat at 3.3 billion rand.

“The gaming industry is experiencing dynamic changes and Sun International, through Sunbet, will continue leveraging its strong brand and market presence to expand our customer base and enter new online markets across Africa,” – Sun International said.

The group said expected interest rate cuts would lift its business outlook and create a more favourable operating environment in the medium to long term. It declared an interim dividend of 1.61 rand per share.

Source: msn.com