Super Group is set to pursue three online gambling licenses in New Zealand as it gears up for the upcoming licensing auction organized by the Department of Internal Affairs (DIA). This follows a 14% year-over-year increase in revenue in the region during Q2, attributed to the performance of its Betway brand, despite a decrease in marketing expenditure.
Chief Executive Officer Neal Menashe noted that the New Zealand market significantly aided a 6% year-on-year growth in global revenue.
During a call with analysts on Wednesday, Chief Financial Officer Alinda Van Wyk remarked on the company's extensive experience in New Zealand, referencing the effective tax regime currently in place. “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,” she explained.
Van Wyk confirmed the company intends to "probably apply for three licenses" out of the fifteen available for tender, reflecting the New Zealand government's selection strategy aimed at maintaining a limited and reputable market presence. The government opened its expression of interest (EOI) window in July, inviting operators to express their intentions for the online gambling licenses set to launch in 2027. Each operator will be capped at three licenses, and current TAB sports betting monopoly operator Entain has expressed its intention to apply for the same number of licenses.
The government’s requirement for a minimum of NZ$7.5 million in capital underscores its focus on permitting only well-established operators capable of sustaining their market presence.
In the UK, Super Group has seen a 19% increase in revenue year-on-year, totaling $132 million across Europe. Menashe stated that the company has gained market share in the UK, particularly following the Remote Gaming Duty tax increase implemented in April. "We’re not a major player in the UK, so there’s a lot of market share we are getting," he shared.
Van Wyk highlighted the benefits of returning to effective marketing strategies, indicating the potential for enhanced margins through optimized operational approaches. "By optimizing marketing to become efficient in the way we operate in that market, we would just deliver better margin in that jurisdiction," she added.
Super Group recently secured a major sponsorship deal with Premier League club Manchester United, aimed at enhancing its visibility both in the UK and internationally, particularly in Africa.
Regarding possible acquisitions in the UK, Van Wyk expressed optimism about future opportunities as smaller operators reassess their positions. "Somewhere down the line, I 100% believe that there would be also some operators that we could plug market share into our business. We’re quite excited," she stated.
Historically focusing on sports betting, Super Group’s Betway brand is also investing in improvements to its online casino offerings. The operator has centralized its technology and product platforms, which contributed to a significant increase in World Cup casino cross-sells to 50% of new customers.
On the financial front, Super Group has raised its full-year revenue guidance to over $2.6 billion, up from the previous estimate of $2.55 billion, and adjusted EBITDA expectations to exceed $710 million. For Q2, adjusted EBITDA reached $204 million, increasing from $157 million. The company's profit also rebounded significantly to $123 million, compared to a loss of $3 million in the same period last year.
