SBC News Voice of the Sports Betting Industry
Super Group has revealed that it has started the year with increased revenue driven by strong tailwinds across Africa and Canada.
Diving into its Q1 earnings call, the NYSE-listed tech company reported a 12% increase in revenue to €379.3m from the €338.5m for the previous corresponding period.
In the call, Neal Menashe, CEO of Super Group, labelled the result as a “phenomenal start” to the year, as it is the “highest ever” first quarter for Super Group.
The CEO commented that the success was partially driven by the company’s continued investment in marketing, and that the segment saw its net revenue go up by 27%.
Cost efficiency for Super Group has also improved, with the company reporting a decrease of 19% in its operational costs.
All in all, Menashe said that ‘revenues across all aspects are meaningfully contributing to EBITDA’, which adjusted stood at €46.5m in Q1 2024 – a 29% increase compared to the €36.1m for the pcp.
Menashe also forecasted that April’s results will reflect the continuous growth, which has been positively driven by Super Group’s presence in Africa and Ontario.
Earlier today the company also announced another significant development, revealing plans to establish full control over the sportsbook software technology that it’s currently using, which is licensed by Super Group’s software partner Apricot.
This would allow the tech provider to better manage its sportsbook technology and deploy it more efficiently across its global markets and its properties such as Betway and Spin casino.
Yet, the deal’s closing is still conditional on supplemental licensing from the relevant gambling regulators – a process expected to last between 6 and 12 months.
Going back to the call, Menashe touched upon the decision to bring the sportsbook in-house by saying that it will allow them to be more flexible with their roadmap and bring more options for decision making.
“We are a tech company,” he said. “Everything relies on the software and customer experience we deliver.”
Focusing on market specifics, Super Group has gone strength to strength in North America, specifically Canada.
Responding to a question about the approach to the potential opening of Alberta, Menashe said that the company remains pleased with its performance in Ontario – with customer retention “now better than before”. Hence, Super Group will look to replicate the model if the Canadian province decides to go forward with the legalisation of betting.
Going over to Africa, Super Group has again enjoyed steady growth. Menashe commented that there is still a lot to achieve in the seven African markets where Super Group is currently active.
The CEO confirmed that two of those markets are exceeding more than the other, but increased focus will be placed on equalising success across all of them, with Super Group being “super localised” for the region.
With that, Menashe concluded that the company now has a tech stack that can be easily deployed when- and wherever needed, and that Super Group is ready to deliver on any M&A opportunities if they become available.
