Hotels and resorts group Sun International has reported higher earnings for the first half of its financial year and has had a strong start to the second half, with revenue ahead of guidance.On Monday, the group reported income rose by 7.4% to R6.6bn in the six months ended June, while adjusted earnings before interest, tax, depreciation and amortisation (ebitda) increased 2% to R1.6bn.The growth was boosted by Sunbet income, which jumped 35.5%, ahead of market growth of about 19%, and as land-based casinos grew market share by 2.3% to 49%, driven by product and marketing investment.Adjusted HEPS rose 7.9% to 247c, and an interim dividend of 185c per share was declared.Land-based casino business growthCEO Ulrik Bengtsson said the results were at the upper end of the group’s expectations.“We are very encouraged by the trajectory we are on, particularly in our land-based casino business, reflecting strong execution and sound investment decisions. While we remain in the early stages of our five-year value creation plan, there is now clear evidence that the initiatives and operational improvements we have put in place are working and are delivering tangible results.”Sun City continued to grow income strongly by 9.9%, while Sun Slots reported marginally lower income. The group spent R492m on capital investments under its five-year value creation plan, the bulk of which went towards refurbishment at Sun City, growth and refurbishment projects at Sun Time Square, GrandWest and Sibaya, and digital and platform investment across Sunbet.Capex remains weighted to the second half and within the group’s R900m to R1.2bn annual capex framework, it said.During the first half, the group repurchased 5.1-million shares for R256m.Bengtsson said the macroeconomic environment remains challenging. “Geopolitical tensions and uncertainty, inflationary pressures, and the prospect of continued elevated living costs mean that discipline, execution, and resilience remain critical. Despite this, consumers continue to spend, and our businesses remain generally healthy.”“Online gaming [Sunbet], the group’s growth engine, delivered another strong performance, growing revenue by 35.5%, ahead of the national online gaming market, which grew roughly 19%. Growth continues to be driven by existing customers in slots and casinos, though we are starting to broaden our offering through our sport business where recent momentum has been building,” he said.Overall growth was supported by 32.3% growth in active player days and a 17.5% increase in first-time depositors.Gross gaming revenue grew 4.4%, while the hospitality business continued to deliver solid growth with revenue, up 7.7%, despite Middle East tension and war-related cancellations of about R20m in the first half.The group, which owns several resorts and hotels, including Sun City, The Maslow in Sandton and the Wild Coast Sun in the Eastern Cape, says the priority for the remainder of the year is to continue to drive income growth and market share gains.“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,” it said.Initiatives to improve operational efficiency and margins are under way, and the group expects to start to reap the benefits from 2027.Trading in the second half has commenced strongly, with revenue growth at the end of August ahead of the group’s guidance range of 6% to 8%, it said.Business Day