Tsogo Sun (TSG) H1 2026 earnings summary

Executive summary

• Total income for the six months ended 30 September 2025 was R5.56 billion, down 1% year-over-year but slightly up sequentially.

• Adjusted EBITDA declined 3% year-over-year to R1.72 billion at a 30.9% margin, but rose 1% sequentially.

• Headline earnings increased 1% year-over-year to R769 million and 8% sequentially.

• Interim dividend per share was reduced to 15 cents, down 50% year-over-year and sequentially.

• Net interest-bearing debt and guarantees reduced by R386 million to R6.80 billion.

Financial highlights

• Net gaming win was R4.60 billion, food and beverage revenue R331 million, and rooms revenue R280 million.

• Operating profit was R1.27 billion, down from R1.38 billion year-over-year.

• Profit for the period was R672 million, with basic EPS at 64.9 cents (down from 70.0 cents) and headline EPS at 73.9 cents (up from 73.1 cents).

• Capex cash flow increased to R343 million from R205 million year-over-year.

Outlook and guidance

• Focus remains on further reducing net debt, with a medium-term leverage target below 1.8x adjusted EBITDA.

• Online betting division to prioritize growth and investment, potentially sacrificing short-term profits.

• New casino development in Somerset West, Western Cape, expected to drive future growth.