Super Group, the Betway operator, has announced Q1 revenue of EUR379.3m ($407.6m/PS326.7m/$407m), which is its highest first-quarter ever. It also announced a deal to acquire in full its sportsbook platform.
Super Group’s Q1 revenue is up 5.4% on the EUR359.9m in the last quarter of 2024. This was also an increase of 12.1% over the first quarter 2023.
Super Group attributes the growth of revenue in Africa and North America. Super Group’s Africa, Middle East and North America revenue grew by 58.9% year-onyear. North America’s growth was 8.2%. Africa accounts for 38 percent of Super Group’s revenues, up from 27 percent in the first quarter 2023. Super Group has seen a decline in the Middle East and Asia-Pacific.
Super Group reported a profit for the first quarter of EUR41m. Super Group announced a profit of EUR41m in Q1. This included a pretax gain of EUR40.1m on the sale of Digital Gaming Corporation’s B2B Division to Games Global as well as an non-cash expense of EUR13.1m due to the change in the fair value of options liability.
In Q1, adjusted EBITDA reached EUR46.5m. This is a 28.8% increase from EUR36.1m in the same period last year. It is a 38.4% rise on the EUR33.6m generated during Q4 2023. Super Group’s adjusted EBITDA was EUR68.7m, excluding the US division which had an EBITDA of EUR22.3m.
Super Group’s chief executive Neal Menashe has praised the ability of the company to maintain its momentum after the year 2023.
Menashe stated that “this robust performance was delivered by the ongoing focus of our global team and their investment in core markets which are yielding high returns. This provides us with a strong foundation for the rest of the year.”
Super Group looks to purchase sports betting software
Super Group has announced that it has signed definitive agreements for the acquisition of its software sportsbook technology. Apricot is Super Group’s partner in software and currently licensed the Super Group sportsbook.
Super Group and Apricot’s licensee have reached an agreement to acquire the platform. Deal included a EUR140m total payment, plus additional payments if earn-outs are met. If Super Group’s revenue from sportsbooks doubles before 2035, additional payments up to EUR210m may be made. This earn-out is calculated as a percent of Super Group’s net monthly gaming revenue from sportsbooks.
Super Group will make an initial payment of EUR100m as a cancellation of a loan. Super Group also agreed to pay EUR40m over two years in equal installments. Super Group may pay up to EUR20m in Super Group ordinary shares.
Super Group had previously announced that it was in talks with its Sportsbook Platform to be acquired by 2022. Although the company stated it could not give any assurances about reaching an agreement with its sportsbook platform, it now has.
Super Group is now closer to achieving its goal of owning all its technology for sportsbooks. The company can also use the stack of technology on its future properties.
Menashe was excited about the potential deal. He said: “This is a rare opportunity for Super Group, to gain full control over our sportsbook software, which will allow for maximum flexibility in organic growth and M&A.
As the benefits from this agreement are realized, we will continue to provide the best gaming and sports betting experience for our clients around the globe.
This deal will be subject to additional licensing by regulators. These approvals will take six to twelve months.
Betway casino grows as sports betting declines
Betway reported a total revenue of EUR222m in Q1 as an increase in the online casino segment was offset by a decrease in brand licensing and sports betting.
The sports betting revenue for the quarter was EUR76.8m. This is a decrease of 5.7% compared to the EUR81.4m that were generated during the same period last year. Brand licensing revenues fell by 33%, to EUR5.9m.
Betway’s online casino reported revenue of EUR135.3m. The EUR135.3m was a 31.4% increase over the EUR103m collected in the same period last year. Betway reported 60.9% revenue from its online casino.
Spin, the casino brand of Super Group, also experienced an increase in revenues year-on-year. Its revenue grew to EUR156.9m (from EUR140.2m) during Q1 2023.
Super Group brands’ monthly active customers increased by 33% during the first quarter to 4.7 millions from 3.5million in the previous period.
Super Group is optimistic about the future
Cash and cash-equivalents at 31 March was EUR289.2m, up from EUR241.9m in 2023. Super Group attributes the increase to EUR69.8m inflows by operating activities. Outflows of EUR20.4m from Super Group’s investing activities were due to the purchase of assets and a EUR10m credit to Apricot Investments.
Super Group direct and marketing costs increased to EUR303.9m, up from EUR275.7m. General and administrative costs also grew to EUR39.2m, from EUR36.6m. Depreciation expenses fell to EUR19.9m.
Menashe announced the results of the 2023 financial year and stated the company aimed for double-digit growth in 2024. Super Group’s 2024 forecast excludes the US and is aiming for an increase in total revenues of 10%, to EUR1.6bn. It also expects a rise in net revenue of 12%.
Alinda Van Wyk, chief financial officer of the company, believes that the focus placed on streamlining business has paid dividends.
Van Wyk said that “our laser-focus on creating an leaner and more efficient operational model delivered results. Q1 operating costs as a percent of net revenue fell below 19%.”
The investment in high-growth business areas continues apace and we remain confident of our ability to achieve the goals we set for 2024.
