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The leadership team of Super Group maintains that there is “plenty of room for growth across all markets” for the NYSE-listed gambling group, which has demonstrated its operational strength in 2024.
Speaking to investors, Group CEO Neal Menashe described 2024 as “an outstanding year” but emphasised that Super Group had begun executing its strategy in 2023, setting new high-bar objectives to deliver on.
“A year ago, we set out to refine our global footprint, increase our focus on key growth markets, fine-tune our products, and realise operational and marketing efficiencies.”
“I’m delighted that we have achieved this while delivering meaningful shareholder returns,” Menashe stated, announcing that Super Group would pay out an enlarged special dividend of €125 million to investors.
For year trading, Super Group achieved corporate revenues (excluding the US) of €1.6 billion, alongside an adjusted EBITDA (ex-US) of €391 million (+53%), significantly exceeding the initial FY2024 guidance of 18%.
However, Menashe highlighted that it was in Q4 that Super Group demonstrated its new capacity to scale, achieving record revenues of €488 million and EBITDA of €129 million. Q4 results were further bolstered by new customer records during the quarter, including a new daily record of just under 2.2 million customers across all products and an all-time high in average unique monthly active customers of 5.3 million.
Operational efficiencies and technological upgrades have enabled Super Group to achieve “inherent operating leverage that is having a direct impact on our financial results,” at a critical time for the Super Group beginning its fourth year as a NYSE-listed enterprise.
“As our existing markets reach scale, incremental revenue becomes more profitable. Continued investment in revenue growth, coupled with a laser focus on a leaner, more efficient cost base, is driving this margin expansion. We expect this trend to continue, and we are increasing our ex-US long-term margin target to greater than 24%.”
2025 sets new path for US profitability
Looking ahead to 2025, Super Group aims to sustain its double-digit growth profile in key markets. In the US, the company will enter the first year of its new “pure-play iGaming strategy,” choosing to operate its Spin online brand in the markets of New Jersey and Pennsylvania.
Despite maintaining a presence in the US, Super Group anticipates an EBITDA loss of €30 million in 2024 as it lays the foundation for profitability by 2027. “In the US, we are covering all costs except for marketing,” Menashe confirmed.
Hey Big Spender?
Analysts questioned the sustainability of Super Group’s high marketing expenditure, which is budgeted annually at approximately 23% of income generated.
Although acknowledging that 23% is a high cost on operations, leadership maintains that marketing remains sustainable when combined with product enhancements and localisation of systems and services.
“I say this every year: we could drop our marketing budget from 23% down to 20%, and we could bring in another €100 million in profit. But that’s not really what we are focused on.
“We want a sustainable, long-term business. It’s all about the sustainability of our customer base, which we are strengthening through enhanced product features, particularly in Africa.”
Market manoeuvres kept above M&A plays
While prioritising sustainable growth, analysts questioned whether Super Group could maintain its long-term double-digit growth trajectory without acquisitions and whether the leadership was considering utilising its existing cash reserve of €355 million.
Although the leadership monitors M&A opportunities, Super Group maintains that there is no change in its core strategy to enhance Betway and Spin in markets where it sees a clear path to profitability.
Menashe concluded by outlining the company’s approach to forthcoming regulatory developments:
“We are expecting Alberta to open in the first half of 2026, and we have factored that into our projections. Additionally, there has been a slight increase in taxation in the UK, and we have accounted for some levy there.
“From the second half of 2024, there will be additional taxes in New Zealand, which are included in our 2025 figures. However, we anticipate New Zealand regulation in 2026, aligning with the regulators there.”
