SBC News Voice of the Sports Betting Industry
Super Group Inc cites that it has matched its revised 2022 corporate expectations, having completed its first full-year as an NYSE-listed enterprise.
This afternoon, the parent company of Betway and Spin brands published its Q4 and FY2022 results, in which the company reported a fourth-quarter revenue decline of 3% to €329m (Q42021: €341m).
The decline in period revenues was primarily attributed to its Canadian business unit which undertook a “regulatory transition” in the newly regulated market of Ontario.
Despite Q4 adjustments, Super Group maintains that its full-year revenue performance matched the upper end of its revised guidance, achieving a result of €1.29bn (FY2021: €1.3bn)
The close of 2022 saw the NYSE group strengthen its underlying KPIs as monthly average customers increased to 3.4 million compared to 2.9 million recorded in the fourth quarter of 2021.
Operating highlights saw the Betway sportsbook register consecutive quarters of growth, as the unit achieved FY2022 revenues of €439m, up 12% on 2021 results of €391m.
Yet, sportsbook growth was undone by the group’s online casino unit (Betway and Spin) registering a 5% decline in full-year corporate revenues to €816m (FY2021: €864m).
A downturn in casino revenues saw Super Group FY2022 EBITDA stand at €298m, reflecting a 5% decline on corresponding 2021 results of €314.5m.
Group CEO, Neal Menashe, commented on performance: “Super Group is a leading global pure-play sports betting and online casino company seeking to continually optimize and grow our global footprint, including in the US.”
He added that leadership will continue to efficiently invest in its brand, enhance its technology platform, and benefit from its consistent cash generation – “We feel we are well positioned to apply our well tested strategies to the US markets and capitalize on what we see as a multi-year investment opportunity.”
FY2022 accounts saw operating costs total €1.08bn (FY2021:€102bn), as Super Group registered increased ‘direct expenses’ of €473m and GA expenses of €270m – yet the group decreased its marketing expenditure to €344 (FY2022: €351).
Profit before tax for the fourth quarter of 2022 was €38.3m, a decrease from €62.6m in the same period last year. However, the full-year profit before tax was €233.7m, an increase from €225.9m in the previous year.
North American strategic initiatives saw Super Group recently close the acquisition of Digital Gaming Corporation Limited, an online sports betting and iGaming company with market access in up to 13 US states, eight of which are live today.
Supporting its North American expansion, Super Group board authorized the repurchase of up to $25m of Super Group ordinary shares through 31 of December.
Group CFO, Alinda van Wyk, stated: “Super Group remains financially strong, and we continue to run our business profitably while investing in technology and marketing to support future growth. We remain focused on operating more efficiently in 2023 in order to improve scale and our operating margins going forward.”
In 2023 Super Group leadership projects a performance recovery across its business, in which it targets a +5 Increase in revenues to €1.35bn, with an EBITDA guidance of €220m (+16% margin).
Operating expenses are expected to decrease by €8m, in which the group seeks to secure €18m in cost efficiencies, “partially offset by the inclusion of Jumpman Gaming and investments in certain markets with high growth potential”.
Company leadership concludes that the company is well positioned to capitalise on a multi-year investment opportunity in the US, as Super Group brands remain focused on improving operating margins and underlying profits going forward.
