The growth of Super Group has been slowed down as Betwayand Spinoperator experienced difficulties in North America During Q1. However, losses have decreased significantly year-on-year.
Super Group’s revenue increased marginally, by 1%, during the first three months of the year. The primary drivers for growth were Europe (338.5m EUR) and Africa (334.5m EUR).
Super Group , a NYSE-listed company, has expressed confidence in its ability after publishing its full year results for 2022 in March.
In today’s report, the group admitted that the declines in North America and Asia-Pacific, notably Canada, had offset the growth in the Old World markets.
The group’s operational EBITDA was EUR34.7m. This is down x% compared to the EUR63m it declared in the previous year, when the company made its debut at the NYSE. The figure for this year was EUR51.4m of non-US revenue, along with a loss of EUR16.6m on the US side.
Super Group has been able to reduce its net losses by 98%, from EUR163.3m to EUR1.9m. This is despite the difficulties in the US and the increased costs of investment after it acquired Digital Gaming Corporation (DGC) as a North American partner.
The company also experienced a positive Q1 with the increase in monthly active customers, up 34% from 2.6 to 3.5 millions.
Neal Menashe CEO of Super Group said: “Super Group delivered another solid quarterly and we remain committed to growing revenue and profit.
“During the month March, the net gaming revenue reached a new record, and the operational EBITDA margin was over 20%. This is a reminder of the importance of operating leverage for our business.
“We are confident we will continue to build upon another strong quarter in igaming, sports betting and across the globe.”
Super Group closed its group-wide assessment for the quarter with cash and cash equivalents at EUR246.3m. This is a 3% decrease from Q1 2020 (EUR254.8m). The decline in cash and cash equivalents was due to the outflows of EUR57.3m from investments, as well as EUR39.6m from operating activities.
Betway, the largest earner in the group (EUR198.3m vs. EUR187m), reported revenues of EUR140.2m vs. EUR147.5m. Spin’s revenue was EUR140.2m vs. EUR147.5m.
Geographically, Betway had some difficulties with Asia. Revenues fell 36%, from EUR55m down to EUR35m. This was coupled with the US where revenues dropped 13%.
Super Group’s performance in Europe was not affected by the recent growth of 71%, which amounted to EUR56m. Spin, an online casino brand, experienced ‘exponential growth’, from EUR2.5m up to EUR21m.
The company continues to grow in Africa and Middle East where its Q1 revenue increased by 35%, reaching EUR88m.
Alinda Van Wyk is the CFO at Super Group. She added that “Our results show the benefits of the continued investment we make in growth.” Our balance sheet is robust, giving us a solid foundation for scaling our business. We constantly optimise our cost efficiencies to further enhance future profitability.
