Super Group is set to pursue three online gambling licenses in New Zealand as it prepares to participate in the upcoming licensing auction organized by the Department of Internal Affairs (DIA). The operator, known for its Betway brand, reported a notable revenue increase of 14% year-over-year in the region during the second quarter, despite a reduction in its marketing expenditure.
CEO Neal Menashe stated that this growth has aided in boosting overall revenue outside of the U.S. by 6% compared to last year.
During a results call with analysts on Wednesday, CFO Alinda Van Wyk explained, "We’ve been operating in New Zealand for many years and it already has quite a significant tax regime. 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 out of the 15 available licenses. The New Zealand government opened the expression of interest (EOI) window in July, inviting operators to express their desire to obtain a license for a market set to launch in 2027. Each operator will be limited to three licenses, with companies like Entain, currently running the TAB sports betting monopoly, also planning to apply for three licenses.
This licensing initiative, requiring operators to demonstrate access to a minimum of NZ$7.5 million in capital, underscores the government’s objective to restrict market participation to a select group of well-capitalized and established operators.
In the UK, Super Group has seen significant gains as well. While the company does not disclose its UK revenue separately, it contributed to a 19% year-over-year increase in European revenue, rising to $132 million. Menashe reported that the company has been capturing market share in the UK since the Remote Gaming Duty tax hike in April.
"We’re not a major player in the UK, so there’s a lot of market share we are getting," he said.
Van Wyk mentioned that their marketing efforts are returning to pre-hike spending levels, which she views as a sound strategy that enhances performance. "It is so important to note that by optimizing marketing to become efficient in the way we operate in that market, it would just deliver better margin in that jurisdiction," she noted.
This week, Super Group also secured a substantial sponsorship deal with Premier League team Manchester United to bolster its brand visibility in both the UK and internationally, particularly in Africa.
When questioned about potential mergers and acquisitions in the UK, especially as smaller operators reassess their positioning, Van Wyk expressed optimism. "Somewhere down the line, I 100% believe that there would be also some operators, [which we could] plug market share into our business. We’re quite excited."
Despite focusing on sports betting, Van Wyk acknowledged efforts to enhance the company's online casino product. Recent projects aimed at centralizing their technology and product platforms have also led to an increase in World Cup casino cross-sell, reaching 50% of new customers.
In terms of financial outlook, Super Group has raised its full-year revenue guidance to exceed $2.6 billion, up from the previous estimate of $2.55 billion, alongside an adjusted EBITDA projection greater than $710 million. The company reported an adjusted EBITDA of $204 million for the quarter, a significant rise from $157 million in 2022. Profit for the quarter jumped to $123 million, a stark improvement from a loss of $3 million the previous year.
