Super Group Inc, stands by its global growth strategy despite witnessing a performance slowdown in North America and Asia during Q1 trading.
The parent company of Betway and Spin brand recorded a 1% increase in Q1 2023 revenues to €338m (Q12022: €334m).
The slowdown in revenues was primarily attributed to a 13% decrease in North American income to €130m, due to the firm’s adjustment to new Ontario market rules and US properties incurring a combined loss of €16m.
Meanwhile, in Asia, the Betway brand suffered a decline in revenues to €35m, down 36% on 2022 comparative results of €55m.
Super Group’s revenue performance was maintained in Europe in which it saw significant growth, increasing by 71% to €56m, with online casino brand Spin witnessing ‘exponential growth’ from €2.5m to €21m YoY.
The company maintains its growth status in Africa and the Middle East, where it achieved a 35% increase in Q1 revenues to €88m.
Neal Menashe, CEO of Super Group, commented: “Super Group has delivered another solid quarter and we remain focused on growing revenue and profits.
“During the month of March, net gaming revenue was a record high, along with the Operational EBITDA margin of over 20% and this is a strong reminder of the value of operating leverage in our business. We are confident that we will continue to build on another strong quarter across iGaming and sports betting across the world.”
Super Group posted a net loss of €1.9m after tax, inclusive of a €2.2m non-cash charge tied to the rise in a call option’s fair value. This figure is a significant improvement from the €163m loss in Q1 2022, largely attributed to the costs of becoming a public entity.
Q1 operational EBITDA stood at €35m, reflecting the €51.4m operational EBITDA outside of the US, as Super Group reported a €16.6m loss from US activities. The figure shows a decline from the €63.0 million seen in Q1 2022.
Alinda van Wyk, CFO of Super Group commented: “Our results for the quarter demonstrate the benefits of our continued investment in growth. Our balance sheet remains robust and gives us a very strong foundation to continue to scale our business. We are always optimizing our costs efficiencies, further enhancing future profitability.”