Sun International forecasts strong H1 2025 earnings growth

Sun International Limited projects a substantial rise in headline earnings per share (HEPS) for the six-month period ended 30 June 2025, anticipating an increase of 56.8% to 61.6% from the ZAR190 reported in HY2024, with expected HEPS between ZAR298 and ZAR307. Adjusted HEPS is also forecast to grow by 5.6% to 7.4%, reaching ZAR227 to ZAR231, up from ZAR215 in the prior period. However, basic earnings per share are expected to decrease by 8.0% to 11.0%, ranging from ZAR300 to ZAR310, compared to ZAR337 in HY2024.

The divergence between basic and headline earnings is primarily attributed to the revaluation of contingent consideration related to Dreams S.A. and the receipt of R80m from Pacifico in May 2025. The difference between headline and adjusted headline earnings stems from a ZAR197m decrease in the estimated redemption value of the Sun West put option liability and ZAR11m in transaction costs related to the termination of the Peermont transaction.

The company maintains a strong financial position, with debt (excluding IFRS 16 lease liabilities) reducing from ZAR5.2bn at 31 December 2024 to ZAR5.0bn at 30 June 2025. Sun International's debt to adjusted EBITDA stands at 1.5 times, and interest cover is 6.8 times. The interim financial results are expected to be released on 8 September 2025.