Betway, Super Group

US performance improves for Super Group but Q3 profit takes a hit

Growth continued for Betway and Spin parent company Super Group across all geographic frontiers except for the Asia-Pacific region during third quarter trading.

Overall group-wide revenue from across the company’s global business was recorded at €356.9m at the quarter’s end, up 16% from €307.8m in Q3 2022 although the group noted that growth potential had been offset.

Operational EBITDA also rose against 2022 comparatives, with the former climbing 8% from €49.6m to €53.8m. However, although the group remains in the black its profit did fall 70% from €34.9m to €10.6m, and the abovementioned EBITDA figure – although still positive – was also impacted by a €10.3m loss from the US.

Whilst acknowledging some headwinds – North America and the Asia-Pacific remain tricky areas for the group, as was the case in Q2 trading – Super Group is confident enough in its performance that it has reiterated previously stated 2023 guidance.

Alinda van Wyk, Chief Financial Officer of Super Group, said: “For the third quarter, we delivered ex-US Revenue of €348.9m and ex-US Operational EBITDA of €64.1m, which resulted in a strong margin of 18%. 

“We continue to focus on investing for future growth and the further realisation of cost efficiencies. Despite some headwinds experienced this quarter, while tight, we are reaffirming our guidance, assuming a normalised margin for the remainder of the year.”

Segment-by-segment, Betway’s sports betting revenue dropped 30% from €89.7m to €64.6m, whilst revenue from fixed odds contingencies for the online sportsbook jumped 74% from €14.9m to €58m.

Additionally, Betway’s online casino revenue also rose 16% from €57.7m to €68.8m, with Spin also recording a smaller uptick in operations – the brand being an icasino-only operator – by 7% to €150m (Q3 2022: €138.8m). 

This meant that casino was the dominant product for Super Group for yet another quarter, with revenue from this segment dwarfing sports betting at €219m (€196.6m) against €64.6m (€89.7m).

Geographically, although the group did acknowledge the aforementioned loss from the region, North America generated the single largest revenue figure for Super Group at €134m, 8% more than the year prior (€123m).

European revenue also rose from €38m to €54m, a growth rate of 30%, and Africa and Middle East revenue by 30% from €70m to €100m. However, Asia-Pacific revenue continued to fall, this time by 9% from €68.5m to €62m, and Latin American revenue also dropped 13% from €7.7m to €6.7m.

Closing Q3, Super Group ended the quarter with cash and cash equivalents of €245.3m, a drop of 4% from €254.8m. This was attributed to inflows from operating activities amounting to €112.1m, inflows from investing activities of €13.9m, outflows from financing activities of €129.3m and a loss of €6.3 million as a result of foreign currency fluctuations on foreign cash balances.

Neal Menashe, Super Group CEO, said: “Super Group has delivered yet another quarter of solid results, having achieved our highest ever revenue for a third quarter, as well as new all-time highs for both our customer numbers and deposits. 

“I remain encouraged by our very strong customer engagement and continued expansion of our global iGaming offering.”

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