UPDATE 1-Sun Intl FY profit down, sees tough 2010

* Trading conditions deteriorate as slowdown bites

* Adjusted headline EPS down 16 pct

* Expects trading to remain subdued in 2010

(Adds details, shares)

JOHANNESBURG, Aug 27 (Reuters) - South Africa's Sun International Ltd (SUIJ.J) reported a drop in full-year profit on Thursday as trading conditions deteriorate due to the global economic slowdown.

Sun International, the biggest casino and gaming group in South Africa, said diluted adjusted headline earnings per share for the year to end June fell 16 percent to 618 cents, while earnings before interest, tax, depreciation and amortisation (EBITDA) fell 3 percent to 2.7 billion rand ($342.4 million).

The firm has been hit as consumers in Africa's biggest economy, battling its first recession in 17 years, rein in on spending on gambling, while tourism from abroad has slowed due to the global financial crisis.

The firm, which owns South Africa's popular Sun City resort, said it expected trading to remain subdued in 2010, but said its Chile and Nigeria businesses should help it to post a rise in revenue and in EBITDA.

Its shares were 0.85 percent lower at 85 rand by 1113 GMT, lagging a firmer JSE Mid-cap index .JMIDC (Reporting by Serena Chaudhry)