South Africa’s Sun International is planning to expand in Brazil and Peru as it strives for increased growth.
Sun International has experienced a slow growth in South Africa. Rigid casino license and online gambling regulations have hampered its progress in the region. Its recent merger with Chile’s Dreams SA is one of the crucial deals it made this year. It intends to grow with emerging markets in Latin America such as Brazil and Peru.
Sun International to Broaden its Reach in Emerging Markets
Sun International’s recent merger with Chile-based Dreams SA has augmented its bid to broaden its operations in Latin America. Sun covers 55% in the merged entity. It aims to bolster its revenues and profit margins with the recent merge. Sun International Chief Executive Graeme Stephens believes that covering emerging markets will bring significant revenue increase for the company.
The merger gave birth to Sun Dreams that has a portfolio of assets in Peru, Colombia, Chile, and Panama. It has 13 properties that carry over 6,000 slot game machines, over 30 game tables, 25 restaurants, and 6 hotels.
“Plans are well advanced to expand in the region. We have plans for expansion in Peru and further down the line Brazil seems to be opening up to licensed casinos,” Stephens told Reuters in an interview, without giving any financial details.
Greener Pastures for Sun in Latin America
Brazil’s government has gradually rolling out gambling regulations in the country. Global casino brands and gambling operators are itching to establish their presence in the region already. Brazilian lawmakers are closing in on gambling legalization legislations. The Sun Dreams group is reportedly has a low level of debt which makes it possible for the merged entity to fund new deals.
“Roughly 30 percent of group revenue now comes from Latin America and over the next few years we expect this proportion to increase as we capitalize on the opportunities that are in the pipeline,” said Stephens.
Chief Executive Graeme Stephens says that the Sun will bid for a number of casino licenses in Chile next year to expand its portfolio of hotels and casinos. It has already sold its assets in African countries. It plans to halt operations in Nigeria, but will focus on South Africa and Latin America markets.