Super Group is setting its sights on securing three online gambling licences in New Zealand as it prepares to participate in the upcoming licensing auction organized by the Department of Internal Affairs (DIA). The company, which has been operating its Betway brand in New Zealand for several years, reported a 14% increase in revenue for the region in Q2 compared to the previous year, despite a decrease in marketing expenditures.
CEO Neal Menashe noted that this growth contributed to a 6% year-on-year rise in revenue from markets outside the U.S. During a conference call on Wednesday, CFO Alinda Van Wyk stated that Super Group has been active in New Zealand for quite some time and acknowledged the country's significant tax framework. She mentioned, "At the time of the re-regulation there was a lot of noise around marketing; we didn’t market there because you don’t want to fall into the trap of a bad actor."
Van Wyk confirmed that Super Group intends to apply for three of the 15 licences available, showcasing their strategic interest in the upcoming market, which is set to officially open in 2027. The New Zealand government initiated the expression of interest (EOI) phase in July, aiming to restrict the number of licenses issued per operator to three, in order to ensure participation is limited to well-capitalized and established companies. Entain, which operates the TAB sports betting monopoly in New Zealand, has also expressed its intention to apply for three licences.
In addition to its ambitions in New Zealand, the company reported a 19% revenue increase across Europe, reaching $132 million in Q2, driven largely by its performance in the UK. While Super Group does not provide a detailed breakdown of its UK earnings, Menashe remarked that the company has been capturing a growing share of the UK market since the Remote Gaming Duty tax increase in April, emphasizing that as a smaller player, there remains considerable market share up for grabs.
Van Wyk highlighted the company’s renewed focus on marketing efficiency, stating, "Our marketing is really returning to what we’re spending at the moment, which is a good strategy. It is so important to note that by optimizing marketing to be efficient, we would deliver better margins in that jurisdiction."
In a significant move, Super Group finalized a sponsorship deal with Premier League team Manchester United to bolster brand recognition in the UK and beyond, particularly in Africa. Van Wyk expressed optimism about potential mergers and acquisitions in the UK market, suggesting that the reevaluation process among smaller operators could present opportunities for Super Group to increase its market presence.
Though historically focused on sports betting in the UK, the CFO indicated that the company is enhancing its online casino offerings. Recent improvements have included a project to centralize its technology and product platforms, which has resulted in a notable increase in cross-selling during the World Cup casino promotion, with 50% of new customers engaging with the casino product.
In light of these positive developments, Super Group raised its full-year revenue guidance to exceed $2.6 billion, up from $2.55 billion, and adjusted EBITDA to exceed $710 million. For the latest quarter, adjusted EBITDA reached $204 million, a significant rise from $157 million in the prior year, with profit jumping to $123 million, compared to a loss of $3 million last year.
