Betway’s parent firm, Super Group, reported revenue of EUR1.29bn for 2022 (PS1.13bn/$1.38bn), in a year marked by declines.
Super Group’s revenue fell by 2.1% over the previous year.
Super Group made several strategic moves during the year. After shareholder approval, the $4.75bn merge with SEAC took place January 20,22. It was approved to launch in Ontario by four of its brands, including its main gaming brand Spin.
After it bought Betway’s local operations in the, Super Group was approved to launch in the USA in January.
Super Group CEO Neal Menashe stated that the company is interested in expanding its global reach, especially in the US.
Menashe stated that Super Group is a global leader in pure-play betting and online casinos and that it seeks to continuously optimise and grow its global footprint, even in the US. “We continue to invest efficiently in our brand, improve our technology platform, and benefit from our constant cash generation.”
“We believe we are well-positioned to apply our tried strategies to the U.S. market and capitalize on what we consider a multi-year investment opportunity.”
Alinda van Wyk (CFO) of Super Group stated that investments will be made in technology and marketing to further support the company in 2023.
Van Wyk stated that Super Group is financially sound and continues to operate profitably. He also said that he invests in technology and marketing to help with future growth. We will continue to operate more efficiently in 2023, in order increase scale and improve our operating margins.
Results for the full year
The total revenue for 2022 is net revenue and other revenue. This includes brand licensing revenue.
It consisted mainly of online casino revenues, which totaled EUR816m. This was a decrease of 5.4%. year-on-year.
The EUR439m sports betting revenue was 12.2% more than FY 2021. The remaining revenue came from EUR41m, a decrease of 42.2%.
The year’s direct expenses totaled EUR473m. This is slightly more than the EUR455m that was recorded in 2021.
The EUR344m marketing costs were lower than the EUR351m that was recorded in 2021. The general and administrative expenses also increased, from EUR52m up to EUR270m.
The year’s pre-tax profit was EUR233.7m. This is an increase of 3.4%. After finance income at EUR2.2m and finance expense at EUR920,000, and depreciation-and-amortisation expense of EUR65.7m respectively, earnings before interest, taxes, depreciation, and amortization (EBITDA), for the year fell to EUR298.1m. This is a decrease of 5.2%.
Other costs, including transaction fees, share-based payment expense, foreign exchange on the revaluation warrants and earnouts, and some gains, brought the adjusted EBITDA down to EUR199.2m. This is a decrease of 31.1% from last year.
Unrealized foreign exchange at EUR2.6m, non recurring and non-current operating adjustments at EUR7.7m, and pre-acquisition loss of EUR1.1m led to the operational EBITDA at EUR208.4m. This is a 31.1% decline.
Fourth quarter
Revenues of EUR329m were reported for the fourth quarter ended 31 December, which was 3.5% less than Q4 2021.
Online casino again accounted for the majority of the revenue at EUR209m. While sports betting brought in EUR113m, other revenue contributed EUR7m.
Direct expenses for the quarter were EUR120m. This was an increase of EUR2m over Q4 2021. Marketing costs remained stable at EUR1m to EUR95m. General and administrative expenses climbed 24.1% to EUR72m during the quarter.
Profit before taxes was EUR38.2m. This is 38.8% less annually. The EBITDA was EUR56.1m with finance income of EUR1m, EUR86,000 in finance expenses and EUR18.8m in depreciation, amortisation, and amortization expense. This is a 32.5% decrease.
Other costs also contributed to a significant drop in EBITDA. The total was impacted by the EUR43.3m change in fair value for earnout liabilities. Restricted stock unit expense of EUR10.5m was a positive.
These and other gains and expenses led to an adjusted EBITDA of EUR17.9m for the quarter, a decrease of 73.8%.
Unrealized foreign exchange at EUR22.1m, non-recurring and non-current operating adjustments at EUR3.5m, and a pre-acquisition loss EUR1.3m led to an operational EBITDA of EUR42.3m for the quarter, which was a 39.1% decrease year-on-year.
