Tsogo Sun Reports R11.13B Revenue, R3.46B EBITDA and R313M Online Betting NGR for Year Ended 31 March 2026
South African gaming and hospitality operator Tsogo Sun reported stronger digital betting performance in its financial results for the year ended 31 March 2026, with its online betting business returning to profitability as net gaming revenue (NGR) increased 24%. The group’s financial disclosures also indicate that the continued growth of online casino-style betting is affecting gaming win across parts of its land-based casino portfolio, highlighting the changing dynamics of South Africa’s regulated gaming market.
The online betting division, which operates under the playTSOGO and bet.co.za brands, emerged as one of the group’s fastest-growing businesses, while Tsogo Sun continued reducing debt and returning capital to shareholders.
Online Betting Business Returns to Profit
Tsogo Sun’s online betting operations generated R313 million in net gaming revenue (NGR) during FY2026, representing 24% year-on-year growth. The division also reported adjusted EBITDA of R50 million, reversing the R15 million loss recorded in the previous financial year.
According to the company, the turnaround began in August 2025 following operational improvements and new leadership appointments with extensive online betting experience. Tsogo Sun plans to continue investing in product development, platform enhancements and customer experience to support further digital growth throughout FY2027.
The group’s impairment disclosures also indicate that the continued growth of casino-style online betting negatively affected gaming win at several casino properties, highlighting the migration of demand from land-based casinos to digital channels. Although the online betting business has returned to profitability, its R50 million adjusted EBITDA remains small compared with the R3.03 billion generated by the Casino & Hotels division.
Group Earnings Rise on Lower Finance Costs
Group revenue remained broadly unchanged at R11.13 billion, while adjusted EBITDA totalled R3.46 billion, maintaining an EBITDA margin of 31.1%. Headline earnings increased 7% to R1.57 billion, with headline earnings per share (HEPS) rising 8% to 153 cents.
Although earnings improved year-on-year, the increase was driven largely by lower finance costs following debt reduction and the impact of the company’s share buyback programme, rather than a significant improvement in underlying operating performance, as group adjusted EBITDA remained broadly flat.
Land-Based Operations Face Mixed Performance
Within its land-based operations, the Casino & Hotels division reported broadly flat revenue but adjusted EBITDA declined 3% to R3.03 billion, reflecting softer slot machine performance and the continued migration of some gaming activity to online channels.
The Limited Payout Machines (LPM) business delivered 3% revenue growth and adjusted EBITDA of R562 million, while KwaZulu-Natal remained the weakest-performing region, with adjusted EBITDA declining from R904 million to R823 million during the year.
Lower Debt and Shareholder Returns Strengthen Financial Position
Tsogo Sun continued strengthening its balance sheet during FY2026, reducing net interest-bearing debt and guarantees by R701 million to R6.49 billion. The lower debt position contributed to a 20% reduction in finance costs, which fell to R550 million.
The board declared a final dividend of 30 cents per share, bringing the total dividend for FY2026 to 45 cents per share, including the interim dividend. The company also repurchased 62 million shares for approximately R438 million, continuing its strategy of returning capital to shareholders while maintaining financial flexibility.
Footprint Reduction Reflects Portfolio Strategy
Alongside its digital expansion, Tsogo Sun continued reshaping its land-based portfolio during FY2026. The group recognised approximately R350 million in impairment charges, including R144 million relating to the Gold Reef City casino licence, R73 million for Blackrock goodwill, R40 million for Caledon goodwill, and R20 million for the Silverstar casino licence, reflecting updated asset valuations and operating expectations.
Tsogo Sun has sold its two smallest casinos and vacant land for a potential R119 million net of taxation, with R17 million received by May 2026. The transaction remains subject to the remaining suspensive conditions being met and, once completed, will reduce the group’s casino portfolio from 15 properties to 13.
Separately, the company sold 53 million City Lodge Hotels shares for approximately R215 million during the year, while its remaining 15 million shares have been classified as held for sale. Tsogo Sun has also committed to disposing of its interest in Goldfields Casino. The proceeds from these transactions are being applied to debt reduction and share buybacks, in line with the group’s capital allocation strategy.
Within its bingo business, the group continues to close loss-making sites as leases expire, citing long-term lease commitments, regulatory delays and ongoing competition from illegal gambling operators as key challenges facing the segment.
Future Outlook: Driving Long-Term Digital Growth
Tsogo Sun expects continued investment in technology, digital products and customer experience to support long-term growth across its gaming business while balancing the ongoing migration of players toward online betting.
The company is also progressing its proposed Somerset West casino development, which remains subject to High Court proceedings after the province’s sole metropolitan casino operator instituted legal action seeking to review the regulator’s approval of the casino relocation and prevent its implementation pending the outcome of the case. Despite these legal and regulatory challenges, Tsogo Sun enters FY2027 with a stronger balance sheet, a profitable online betting business and a continued focus on expanding its digital presence while adapting to changing player preferences across South Africa’s regulated gaming market.
Source : Tsogo Sun
