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Unaudited Interim Group Financial Results, Interim Ordinary Cash Dividend Declaration for the six months ended 30 June 2026 and Changes to Risk Committee Responsibilities
Sun International Limited
(Incorporated in the Republic of South Africa)
Registration number: 1967/007528/06
Share code: SUI
ISIN: ZAE000097580
LEI: 378900835F180983C60
("Sun International" or "the Company" or "the group")
UNAUDITED INTERIM GROUP FINANCIAL RESULTS, INTERIM ORDINARY CASH DIVIDEND DECLARATION FOR THE SIX MONTHS ENDED 30 JUNE 2026
AND CHANGES TO RISK COMMITTEE RESPONSIBILITIES
Salient features
- Group income* up 7.4% to R6.6 billion
- Adjusted EBITDA* up 2.0% to R1.6 billion with adjusted EBITDA margin at 24.1%
- Sunbet group income grew 35.5%, ahead of market growth of approximately 19%
- Land-based casinos grew market share by 2.3% to 49.0%, driven by product and marketing investment
- Robust cash generation, with 47.1% adjusted EBITDA to free cash conversion
- Earnings per share (EPS) down 2.3% to 300 cents per share (cps) (HY 2025: 307 cps)
- Headline earnings per share (HEPS) down 7.2% to 283 cps (HY 2025: 305 cps)
- Adjusted HEPS (AHEPS) up 7.9% to 247 cps (HY 2025: 229 cps)
- Interim ordinary cash dividend of 185 cps up 7.6% (HY 2025: 172 cps) maintaining the 75% of AHEPS dividend payout ratio
*Excluding Table Bay Hotel
Financial performance
Shareholders are advised that during the review period, income increased by 7.4%*. Adjusted EBITDA rose 2.0%* while the adjusted EBITDA margin
declined 1.3 percentage points to 24.1%, reflecting deliberate investment in technology, capabilities and customer acquisition, together with inflationary
cost pressures. Adjusted headline earnings per share increased 7.9% to 247 cents, benefiting from strong growth in wholly owned subsidiaries and
outpacing earnings on the back of strong cash generation and disciplined share buybacks.
Capital expenditure (capex) was R492 million, up from R277 million year-on-year, as the group stepped up investment under its five-year value creation
plan. Spend was directed towards refurbishment at Sun City, growth and refurbishment projects at Sun Time Square, GrandWest and Sibaya, and digital
and platform investment across Sunbet. Adjusted EBITDA to free cash conversion of 47.1% reflected this elevated growth capex and is expected to
normalise towards the group's 55% to 60% target as it moves further along in its plan. Capex remains weighted to the second half and within the group's
R900 million to R1.2 billion annual capex framework.
The group maintains a strong financial position. Group debt (excluding IFRS 16 lease liabilities) increased to R5.3 billion from R5.0 billion as at 31
December 2025, after returning R1.2 billion to shareholders through dividends and share repurchases, leaving net debt-to-adjusted EBITDA at 1.6 times
- comfortably within the group's 2.0 times through the cycle target. Interest cover was strong at 8.3 times, and net interest costs fell 13.6%, benefiting
from favourable pricing secured as a result of the group's 2025 debt refinancing. With R1.8 billion of available liquidity and significant covenant
headroom, the group retains the flexibility to fund its growth agenda.
Reflecting confidence in the group's long-term prospects, the board declared an interim cash dividend of 185 cents per share, in line with guidance
provided of distributing 75% of adjusted headline earnings per share, and repurchased 5.1 million ordinary shares (2.0% of December 2025 issued share
capital) for R256 million at an average price of R50.08 per share, which were subsequently cancelled and restored to authorised share capital.
*Excluding Table Bay Hotel
Outlook
Sun International's priority for the remainder of the year is to continue to drive income growth and market share gains, and to ensure that the progress
achieved across its value creation plan translates into measurable earnings growth, margin improvement and sustainable returns. The fact that the group
is growing adjusted EBITDA while simultaneously undertaking one of the largest investment programmes in recent years demonstrates the durability of
the underlying business model. Initiatives to improve operational efficiency and margins are underway, and Sun International expects to start seeing the
benefits thereof from 2027.
With the foundations for the next phase of growth firmly in place, it enters the second half of 2026 with stronger capabilities, improved execution
momentum and a clear pathway to value creation.
Trading in the second half has commenced strongly, with revenue growth as of 31 August ahead of the group's guidance range of 6% to 8%.
Sun International remains committed to building a digitally led, market-leading omnichannel gaming company of scale that delivers sustainable long-term
value to its shareholders and broader stakeholders.
Interim ordinary cash dividend declaration
Notice is hereby given that the board has declared an interim gross cash dividend of 185 cents (148.00000 cents net of dividend withholding tax) for
the six-month period ended 30 June 2026, being a 7.6% increase on the prior period's 172 cents, payable to shareholders recorded in the register of
the company at the close of business on the record date appearing below. The dividend has been declared from cash reserves and therefore does not
constitute a distribution of 'contributed tax capital' as defined in the Income Tax Act, 58 of 1962. A dividend withholding tax of 20% will be applicable to
all shareholders who are not exempt.
The issued share capital at the declaration date is 250 606 465 ordinary shares. The salient dates for the interim dividend will be as follows:
Declaration date Monday, 7 September 2026
Last day to trade cum dividend Monday, 21 September 2026
Shares commence trading 'ex' dividend Tuesday, 22 September 2026
Record date Friday, 25 September 2026
Payment date Monday, 28 September 2026
Share certificates may not be dematerialised or re-materialised between Tuesday, 22 September 2026 and Friday, 25 September 2026, both days
inclusive. Ordinary shareholders who hold dematerialised shares will have their accounts at their CSDP or broker credited or updated on Monday,
28 September 2026. Where applicable, dividends in respect of certificated shares will be transferred electronically to shareholders' bank accounts on
the payment date. Where the transfer secretaries do not have the banking details of any certificated shareholders, the cash dividend will be held in trust
by the transfer secretaries pending receipt of the relevant certificated shareholder's banking details after which the cash dividend will be paid via
electronic transfer into the personal bank account of the certificated shareholder.
Sun International's tax reference number is 9875/186/71/1.
Changes to the board and committees
On 15 April 2026, Ms AM Palmstierna (Audrey) was appointed as an independent non-executive director of Sun International. In addition to being
appointed as a director of Sun International, Audrey was also appointed as a member of the Company's remuneration, risk and social and ethics
committees on 14 May 2026.
Ms D Marole retired as an independent non-executive director of Sun International with effect from 8 July 2026.
On 20 August 2026 Sun International announced that Mr N Basthdaw, the Chief Financial Officer and Finance Director of Sun International, would step
down and retire as an executive director of the Company on 1 January 2027 and would be succeeded by Ms V Olver as the new Chief Financial Officer
and Finance Director of Sun International.
Effective 4 September 2026, Mr TR Ngara retired as chairman and as a member of the risk committee and was succeeded as chairman by Mr NT Payne,
an independent non-executive director.
Directors' responsibility
This short-form announcement has been prepared in compliance with the JSE Limited Listings Requirements and is the responsibility of the board of
directors of Sun International.
This short form announcement is a summarised version of the full announcement in respect of the interim results for the six months ended
30 June 2026 and as such, it does not contain full details pertaining to the Company's interim results. The full announcement can be found on the
Company's website: https://corporate.suninternational.com/investors and on the JSE's website at:
https://senspdf.jse.co.za/documents/2026/jse/isse/SUI/HY2026.pdf
Any investment decisions should be made based on the full announcement. The information contained in this short form announcement has not been
reviewed or reported on by the Company's auditors.
Presentation
There will be an investor presentation and video pertaining to Sun International's interim financial results made available on the Company's website at
https://corporate.suninternational.com/investors. This will be uploaded on the Company's website at around 08h00 today.
Forward Looking Statements
This document contains forward-looking statements. All statements, other than statements of historical facts, including, among others, statements
regarding our strategy, future financial position and plans, objectives, projected costs, anticipated cost savings, financing plans and projected levels of
growth in the communications markets, are forward-looking statements.
Forward-looking statements can be identified by terminology such as "may", "might", "should", "expect", "envisage", "intend", "plan", "project", "estimate",
"anticipate", "believe", "hope", "can", "is designed to", or similar phrases. However, the absence of such words does not necessarily mean a statement is
not forward-looking. Forward-looking statements involve several known and unknown risks, uncertainties and other factors that could cause our actual
results and outcomes to be materially different from historical results, or any future results expressed or implied by such forward-looking statements.
Factors that could cause our actual results or outcomes to differ materially from our expectations include, but are not limited to, those risks identified in
Sun International financial reports available at www.suninternational.com.
Sun International cautions readers not to place undue reliance on these forward-looking statements. All written and verbal forward-looking statements
attributable to Sun International, or persons acting on behalf of Sun International, are qualified in their entirety by these cautionary statements. Unless
we are required by law to update these statements, we will not necessarily update any of these statements after the date of publication of this
document so that they conform either to the actual results or to changes in our expectations. Any forward-looking information disclosed in these interim
results for the six months ended 30 June 2026 has not been reviewed, audited, or otherwise reported on by our independent external auditors.
7 September 2026
Sponsor
Investec Bank Limited
Enquiries
Investor Relations
investor.relations@suninternational.com
Date: 07/09/2026 07:45:00
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