Sun City-owner begins retrenching workers

Sun International, the owner of South Africa’s renowned Sun City resort, has launched formal Section 189A consultations.

The group did not specify how many jobs would be impacted, but said these proceedings will support its lower-cost, more centralised operating model.

This model and the ensuing retrenchments are being implemented to enhance the group’s operational efficiency and the profitability of its underperforming assets.

This was revealed in Sun International’s results for the six months through June 2026, marking the first half of its 2026 financial year.

These results reflected a strong performance for Sun International, which saw its land-based casinos return to growth for the first time in three years.

The group’s income surged 6.4% to R6.58 billion, with growth across nearly all of its operating segments, excluding Sun Slots.

The fastest-growing segment was Online Gaming, driven by the group’s online gambling platform, Sunbet, which saw income grow by 35.5% to R1.18  billion.

This growth significantly outpaced the broader market, which grew by 19% during the same period. 

Sunbet benefited from a 32.3% increase in active player days and a 17.5% increase in first-time depositors.

Sun International’s biggest segment, Land-based casinos, grew income for the first time in years, up 1.5% to R3.42 billion.

This expanded the group’s market share by 2.3 percentage points to 49%, making it the clear market leader.

The group attributed this return to growth to intense product investments and the introduction of 876 new slot machines and stadium games.

While this is a notable turnaround, Sun International said it is seeking to improve margins at smaller, underperforming land-based properties.

This is why the group is implementing a lower-cost, more centralised operating model called its ‘Casino Lite’ project.

This, alongside centralised marketing and technology functions, led the group to launch Section 189 consultations to right-size its workforce and improve productivity.

Sun International’s Hospitality segment, which includes Sun City and other resorts, also performed well, with income up 2.8% to R1.29 billion.

Sun City was a standout performer in this regard, with the group now reaping the benefits of its R400 million investment in the resort’s revamp.

The group’s flagship resort grew revenue by 9.9% to R1.07 billion, heavily bolstered by domestic leisure demand, conferencing activity, and a refreshed food and beverage offering.

On the back of these results, Sun International declared an interim dividend of 185 cents per share, up 7.6% from 2025’s half-year dividend.