Super Group’s Q1 2024 released during US business uncertainty

Lea Hogg May 8, 2024

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Super Group’s Q1 2024 released during US business uncertainty

“We’ve had a phenomenal start to the year, continuing our momentum
from a strong end to 2023″
Neal Menashe,
CEO – Super Group

Super Group, the operator of Betway, has reported a record Q1 revenue as it contemplates the future of its loss-making US business. The company reported a revenue of €379.3 million in the first quarter of the year, marking a record Q1 and a 12 percent increase from the previous year. This revenue was generated primarily by the company’s sports betting-centred Betway (€222 million) and the iGaming-focused Spin brand (€157.3 million).

The company’s Africa and Middle East operations were responsible for 37 percent of the revenue, at €139.7 million. However, Super Group’s North American business remained the largest region by revenue, generating €140.9 million, primarily in Canada. In Q1 2024, the business reported €46.5 million in Adjusted EBITDA, up 29 percent from 2023. This resulted in a €41.0 million profit for the period, compared to last year’s €1.9 million loss.

The Q1 2024 numbers included a €40.1 million gain on the disposal of Digital Gaming Corporation’s B2B assets, as well as a €13.1 million non-cash charge. Super Group’s number of active customers also increased 33 percent year-on-year, to 4.7 million.

Neal Menashe, CEO of Super Group (pictured above), spoke about the amazing start to 2024 highlighting the company’s strong results.

Super Group CFO Alinda van Wyk added: “We achieved record results for a first quarter of €374 million of revenue and €69 million of Adjusted EBITDA, for the ex-US business.”

Super Group today also announced it plans to take its tech stack in-house through a €140 million deal with its supplier, Apricot. The future of Super Group’s US business, which is currently under review, was a topic of discussion during the earnings call. The CEO said the company was looking at all options to make a decision that is in its long-term interest.

He added that iGaming was the company’s “bread and butter” and would likely play a role in any move to US profitability. He added: “This is a waiting game – over time different states can regulate and you’ve got to be in play to have a chance of success, we understand that. But there’s a cost of being in play and we just got to make sure what that cost is.”

Super Group (SGHC) Limited (SGHC) is trading at $3.50 (0.43%).