First quarter difficulties encountered across North America have continued through April-June for Super Group, with the Asia-Pacific region also tracking significant declines through Q2 and H1.
Headline figures saw the Betway and Spin operator’s revenue nudge ahead 19 per cent to €380.8m (2022: €320.8m), with Europe, Africa and the Middle East cited as key growth points.
This partially offset declines felt across North America, predominantly in Canada due to regulatory changes in Ontario, and Asia-Pacific markets.
Operational EBITDA stood at €70m, up 30.59 per cent from €53.6m declared last year. This consisted of €82.6m in non-US income coupled with a stateside loss of €12.6m.
“We remain confident in our business model and focused in our search for future growth opportunities”
Neal Menashe, Chief Executive Officer of Super Group
In addition, monthly active customers increased 40 per cent to 3.7 million (2022: 2.7 million), with cash and cash equivalents closing at €228.7m, down 11.41 per cent from Q2 2022’s €254.8m.
This decline was attributed to inflows from operating activities of €53.2m, inflows from investing activities of €54.1m, outflows from financing activities of €125.2m and a loss of €8.1m was a result of foreign currency fluctuations.
“Super Group has delivered financial results that reflect our ongoing focus on both an optimised global footprint and investment in long-term growth,” commented Neal Menashe, Chief Executive Officer of Super Group.
“This quarter’s strong revenue performance has delivered enhanced economies of scale in multiple markets, resulting in significant year-over-year growth in operational EBITDA, ex-US.
“We remain confident in our business model and focused in our search for future growth opportunities in the global online casino and sports betting industry.”
A product breakdown saw Betway remain the group’s biggest earner, drawing in revenue of €228.93m (€178.69m), whilst Spin reported revenue of €151.85m (€142.12m).
“Achieving scale in each of our markets, combined with driving cost efficiencies throughout the business remain our focus for long-term growth”
Alinda van Wyk, Chief Financial Officer of Super Group
Online casino remains the largest segment by revenue courtesy of a 9.46 per cent uptick to €223.64m (2022: €204.31m), while sports betting closed at €143m, up 29.2 per cent from €110.68 year-on-year.
Geographically, Betway once again hit hurdles with Asia, with revenue down 10.69 per cent from €69.11m to €77.38m. North America followed suit with a 3.53 per cent decline to €137.1m (2022: €142.12m).
It was a case of familiarity in Europe, where revenue rose 87.24 per cent to €57.12m (2022: €30.5m), with Africa and the Middle East up 73.54 per cent and Latin American fractionally down to €7.11m (2022: €7.21m).
“Our second quarter results, ex-US included record revenue and solid Operational EBITDA of €82.6m,” explained Alinda van Wyk, Chief Financial Officer of Super Group.
“Our monthly active customer numbers continue to show momentum reaching 3.7 million which we believe is a key driver for future growth.
“Achieving scale in each of our markets, combined with driving cost efficiencies throughout the business remain our focus for long-term growth and bringing us back to consistent ex-US EBITDA margin from operations of greater than 20 per cent.
“With regards to the US, the business is tracking in-line with expectations and we are confident in our strategy.”
For the first six months of the year, revenue increased 9.76 per cent to €719.31m (2022: €655.29m), however, profit for the period and operational EBITDA declined 81 per cent and 10.35 per cent to €25.63m (2022: €135.33m) and €103.97 (2022: €114.41m).