Tsogo Sun buyback tops $14 million as shares fall 33% on JSE

Tsogo Sun, South Africa’s leading casino, hotel, and entertainment group, has completed a share buyback valued at approximately R225.9 million ($14.1 million), repurchasing 32,511,863 shares, equivalent to 3.12 percent of its issued shares at the date of its annual general meeting.

Repurchase executed via JSE order book

The buyback, executed between September 30, 2025, and February 16, 2026, through the Johannesburg Stock Exchange order book, was carried out without any prearranged agreements with counterparties. Shares were purchased at prices ranging from R6.48 ($0.40) to R7.59 ($0.47) apiece, averaging R6.95 ($0.43).

Of the repurchased shares, 22,387,291 have already been delisted and cancelled under shareholder-authorized terms, while the remaining 10,123,863 are expected to be delisted on or around February 20, 2026. It now holds no treasury shares under JSE definitions, leaving 123,878,368 shares available, representing 11.88 percent of shares in issue as of August 29, 2025. Some purchases occurred during a prohibited period under the repurchase program, which had been submitted to the JSE in full compliance with listing requirements.

Share repurchase amid 33% stock drop

The board emphasized that the buyback does not compromise the group’s financial stability. Following the repurchase, the company expects to meet its debt obligations in the ordinary course of business for the next 12 months. Total assets continue to exceed liabilities, and share capital, reserves, and working capital remain sufficient for ordinary business purposes. Tsogo Sun’s directors confirmed that the buyback and related transaction costs have not materially affected financial results, aside from a corresponding decrease in cash balances.

The share repurchase comes against a backdrop of a 33 percent decline in Tsogo Sun’s stock over the past year, which has reduced the company’s market capitalization to R7.24 billion ($452.1 million). Despite this, the group’s financial results for the first half of its 2026 fiscal year showed modest improvement. Headline earnings rose 1 percent to R769 million ($48 million) compared to R759 million ($47.3 million) for the prior period, and increased 8 percent over R712 million ($44.4 million) from the six months ended March 31, 2025—the first consecutive six-month period of growth since March 2023.

Tsogo Sun operates South Africa hotspots

Tsogo Sun’s portfolio spans some of South Africa’s most prominent hotel and entertainment precincts. It includes the Palazzo, Pivot, Piazza, and Hotel Perte in the Montecasino precinct in Fourways, Johannesburg; the Gold Reef City Hotel and Gold Reef City Theme Park Hotel in southern Johannesburg; the Silverstar Hotel on the West Rand; and Emerald Resort & Casino, which offers hotel rooms, chalets, and lodges. The group’s diverse holdings and measured financial approach underscore its commitment to navigating a challenging market while maintaining operational stability.

Revenue for the six months ended September 30, 2025, stood at R5.56 billion ($346.6 million), slightly below the R5.61 billion ($348.7 million) recorded a year earlier but marginally up from R5.55 billion ($346 million) for the previous six months. Adjusted EBITDA declined 3 percent to R1.72 billion ($107.2 million), down from R1.78 billion ($111 million) in the prior comparative period, while the EBITDA margin fell to 30.9 percent from 31.7 percent. On a sequential basis, however, EBITDA rose 1 percent from R1.70 billion ($106 million) at a 30.6 percent margin.