Sun International, a South African gaming company, will be able to pay its dividend for the first time in six years. This is thanks to the operator’s revenue rising by 30% in the first half of 2022.
Sun International Paid Dividend
Sun International’s business was badly hurt by the COVID-19 pandemic. The virus outbreak forced the company to temporarily shut down, which led to some heavy financial losses. However, now that the pandemic has subsided, the company experienced a steady recovery.
Sun International operates casinos, slots and hospitality services. While its hotel business experienced a steady recovery in the first half of the current year, it is the company’s gambling business that helped it recover from the damages caused by COVID-19. Now that tourism has resumed, more visitors frequent the company’s hotels and gambling halls, helping business pick up once again.
Now Sun International has strengthened its business, it decided to pay its dividend for the first time in six years. The company announced that it will pay an interim dividend of $0.05 per share. As a result, Sun International will pay back $29 million of its debt and reduced it to $390 million.
The operator’s share price, meanwhile, continues to fluctuate. Despite the ups and downs, the overall statistics show that Sun International’s shares are also recovering. However, it will likely be a while before they return to their pre-pandemic prices.
Sun Relies on Its Gaming Operations
Gambling operations contribute 82% of Sun International’s income. Because of this, it is critical for GGR to return to its pre-pandemic levels so that Sun can pay its dividends. Right now, the company’s slots operations are its strongest segment as Sun Slots’ revenues have surpassed the pre-pandemic levels.
Speaking about the company’s recovery, a spokesperson said that the casino income is currently excellent and demonstrates a strong recovery.
Casino income has proven resilient and is swiftly recovering from the effects of the pandemic.
Sun International statement
South Africa shows a lot of promise as one of the emerging gaming markets. Africa, as a whole, is seen as a huge market that has barely been tapped. Because of that, numerous companies have been working to expand their presence in the continent and rank among the visionaries that will shape African gaming.
Two months ago, global bookmaker Betfred expanded its presence in South Africa thanks to a deal with LottoStar. Meanwhile, at the beginning of July, Gaming Laboratories International announced that it has hit 100 South Africa-based employees.