Betway Operator Super Group Off to a Great Start in 2024

Article by : Erik Gibbs May 15, 2024

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Super Group, a leading gaming and sports betting company, recently announced its highest-ever first-quarter revenue, reaching a notable €379.3M (US$409.8M). This achievement marks a significant milestone for the company, representing a 5.4% increase from the previous quarter and a 12.1% surge compared to the corresponding period in 2023.

The notable revenue growth can be primarily attributed to Super Group’s success in Africa and North America. In Africa, the company witnessed a remarkable 58.9% year-on-year revenue increase. Similarly, North America experienced an 8.2% rise in revenue.

Africa’s contribution to Super Group’s revenue surged from 27% in Q1 2023 to an impressive 38% in the current quarter, illustrating the region’s expanding prominence in the company’s revenue mix.

Despite the overall positive trend, Super Group noted declines in certain markets, particularly in the Middle East and Asia-Pacific regions. While the company remains focused on leveraging growth opportunities, it acknowledges the need for strategic adjustments in these areas to optimize performance.

Super Group’s Q1 profit reached €41M (US$44.2M). This profit includes a notable pre-tax gain of €40.1M (US$43.3M) from the strategic sale of the B2B division of Digital Gaming Corporation (DGC) to Games Global.

Additionally, a non-cash charge of €13.1M (US$14.1M) for changes in fair value of option liability was accounted for in the profit figures. Adjusted EBITDA for Q1 surged to €46.5M ($50.2M), marking a noteworthy 28.8% increase compared to the same quarter last year.

Super Group’s CEO, Neal Menashe, commended the company’s global team for delivering robust performance and sustaining momentum from the end of 2023. Menashe attributed this success to the company’s focused investments in core markets, which continue to yield strong returns and provide a solid foundation for future growth opportunities.

In a move to enhance its technological capabilities and operational flexibility, Super Group announced definitive agreements to fully acquire its sportsbook software technology from its current licensee, Apricot, for €140M (US$151.2M).

Betway, a key subsidiary of Super Group, reported a total revenue of €222M (US$239.7M) in Q1. While sports betting revenue experienced a modest decline of 5.7% to €76.8M (US$82.9M), the online casino segment witnessed robust growth, with revenues surging by 31.4% to €135.3M (US$146M).

Monthly active customers across Super Group’s diverse portfolio of brands increased by an impressive 33% during Q1, reaching 4.7 million.

Super Group remains optimistic about its future prospects, supported by a healthy financial position. As of March 31, the company’s cash and cash equivalents stood at €289.2M (US$312.3M), reflecting positive inflows from operating activities.

Despite increased expenses in direct, marketing and general administrative areas, the company’s disciplined approach to cost management is evident, with depreciation and amortization expenses witnessing a decline.

Super Group reaffirmed its ambitious growth targets for 2024, aiming for double-digit top-line growth. With a clear focus on streamlining its business operations and capitalizing on high-growth opportunities, the company remains confident in its ability to deliver sustainable value to shareholders and stakeholders alike.

Chief Financial Officer Alinda van Wyk emphasized the company’s commitment to efficiency and growth, highlighting the ongoing investments in key areas to drive future success.