Tsogo Sun (TSG) H1 2025 earnings summary

Executive summary

• Income for the six months ended 30 September 2024 was R5.61 billion, down 4% year-over-year and 1% sequentially from the previous six months.

• Adjusted EBITDA declined 10% year-over-year to R1.78 billion, with margin dropping to 31.7% from 33.6%.

• Headline earnings and adjusted headline earnings both fell 15% year-over-year to R759 million.

• Interim dividend declared at 30 cents per share, down from 40 cents in the previous six months.

Financial highlights

• Net gaming win decreased to R4.69 billion from R4.95 billion year-over-year.

• Profit for the period was R730 million, down from R904 million year-over-year.

• Basic and diluted EPS was 70.0 cents, compared to 85.9 cents year-over-year.

• Net finance costs (excluding leases) decreased to R350 million from R370 million year-over-year.

• Net cash generated from operating activities was R659 million, up slightly from R643 million year-over-year.

Outlook and guidance

• Trading conditions remain challenging, with no immediate turnaround expected, but sentiment has improved since November with slightly better revenue and a lower repo rate.

• Focus areas include further debt reduction, investment in solar energy, and expansion of online betting platforms.

• Capex is expected to be higher in the second half due to timing of slot payments and solar projects.

• Share buy-backs may be considered in addition to dividends.