Betway US exit costs dampen Super Group’s peak Q2 results

Super Group has declared ‘exceptional trading’ to post its highest ever revenue and adjusted EBITDA results.

The NYSE online gambling group filed its Q2 2024 accounts, generating all-time high revenues of €414 million, up 9% compared to the 2023 figures of €380 million.

Peak revenue results were achieved despite the Betway brand’s exit from the US markets, as group accounts detailed that excluding US activities, Super Group’s Q2 revenues stood at €408 million.

During the period, the Betway unit contributed revenues of €246 million, up 7% compared to 2023 figures of €228 million, while the Spin (online casino) unit generated a Q2 income of €168 million, up 11% from 2023 results of €151 million.

For Betway, activities in Africa and the Middle East generated 62% of Q2 revenues at €152 million (Q2 2023: €110 million). In Europe and North America (excluding the US), the Betway unit achieved an income of €45 million and €38 million, respectively.

The online casino brand Spin accounted for North America (predominantly Canada) as its biggest market, contributing Q2 revenues of €111 million, followed by the Asia-Pacific region contributing €30 million.

All-time high revenue results mirrored record KPIs, in which Super Group brands indexed a combined monthly player activity of 4.5 million customers, up 21% compared to 2023 figures of 3.7 million.

Group CEO Neal Menashe commented, “The second quarter of 2024 was our strongest quarter ever and demonstrates the exceptional progress we continue to make as a business. I’m glad we have reached a conclusion in shutting the US sports betting market, and we continue to optimise our global footprint both in terms of geography and product.”

“I’m really excited to welcome the English Premier League champions, Manchester City, and South Africa’s Premier Soccer League, now known as the Betway Premiership, to our brand sponsorship portfolio. Our outlook for the remainder of the year is strong, and we look forward to making 2024 a super year for Super Group.”

Excluding US adjustments, Super Group detailed that its adjusted EBITDA stood at €98.3 million, marking its highest ever earnings quarter.

However, period results were offset by a non-GAAP loss of €16.4 million due to US adjustments, resulting in an adjusted EBITDA of €82 million.

Super Group’s consolidated statement booked impairment of asset charges totalling €37 million, closing Q2 accounts with losses of €800,000.

Q2 trading saw Super Group increase its cash reserves and equivalents to €306 million as of 30 June 2024, up from €242 million reported on 31 December 2023.

Signing off the accounts, Group CFO Alinda van Wyk remarked, “We set new quarterly records for our ex-US business, with total revenue reaching €408 million and adjusted EBITDA hitting €98 million. Our strong second-quarter ex-US EBITDA margin of 24% was driven by our focus on growth in key markets and significant progress in realising cost efficiencies.

Given our performance in the first half of the year, we are confident in raising our ex-US adjusted EBITDA guidance for the full year 2024 to exceed €300 million. Additionally, our debt-free balance sheet remains robust, and we were pleased to return capital to shareholders by announcing our first-ever dividend.”