Super Group has stated it achieved an all-time revenue record in 2023 of €1.4bn, with igaming remaining the largest part of its business.
The NYSE group – which operates Betway and Spin – had a “particularly strong” fourth quarter according to CEO Neal Menashe, while a 10 per cent year-over-year increase in revenue is also being forecasted for the year ahead.
However, in the US, Super Group has stated that it is “currently assessing a range of options” and expects 2024’s adjusted EBITDA loss to not exceed 2023’s figure, which was a loss of over €57m.
Super Group all-time highs
Publishing its financial results, Super Group declared a Q4 revenue of €359.9m, a nine per cent improvement in comparison to €329.1m reported in the same period the previous year. The revenue figure was also the highest amount the company has recorded in Q4. Constant currency, revenue rose by 15 per cent to €378.4m.
Excluding US businesses, Q4 revenue stood at €352m, with net revenue reaching a new high of €341m.
Online casino operations continued to be the biggest contributor towards overall Q4 revenue at 85 per cent, with online sports betting operations making up the remaining 15 per cent.
Sports betting revenue fell by 39 per cent to €53m due to customer-friendly sports results in October causing “an unprecedented negative sports margin”, as well as the closure of the Indian market.
Online casino revenue improved by 22 per cent to €289m after growth in Africa, Canada and several European markets being offset by the closure of the Indian market. Other revenue rose by 44 per cent to €11m.
Betway operations generated 55 per cent of the total revenue during the quarter, while Spin operations had a 45 per cent share. Per region, 42 per cent of total revenue came from the Americas, followed by Africa at 33 per cent, Europe at 17 per cent and RoW at eight per cent.
For the full year, Super Group’s revenue came in at a record amount of €1.4bn, up 11 per cent YoY (2022: €1.3bn). Constant currency, revenue grew by 19 per cent to €1.5bn. Excluding US operations, revenue surpassed guidance of €1.35bn by €56m to €1.41bn (2022: €1.3bn).
Excluding-US, 78 per cent (€1.07bn) of net revenue came from online casino operations, while 22 per cent (€295m) came from sports betting.
“We have made tremendous strides in 2023 and are delighted to have achieved an all-time revenue record of €1.4bn, enabling us to comfortably surpass our guidance for the year,” commented Menashe.
US EBITDA loss
Super Group reported a loss before tax in Q4 of €44.9m (Q4 2022: €21.1m profit), affected by €35.9m non-cash charges relating to the impairment of the Digital Gaming Corporation cash-generating unit, as well as €6.1m (2022: €15.1m) after an increase in the fair value of a liability for a call option granted to a third party for the purchase of the DGC B2B division.
For the full year, profit before tax stood at €16.8m (2022: €216.5m), affected by non-cash charges of €28.6m connecting to an increase in the fair value of a liability for a call option granted to a third party for the DGC B2B purchase, as well as a €35.9m non-cash charge relating to the impairment of the DGC cash-generating unit.
Super Group noted that in 2022, “profit included non-cash gains of €246.8m relating to the fair value of warrant and earnout liabilities and related foreign exchange movements, partially offset by share listing expenses of €126.3m and an adjusted RSU expense of €25.4m”.
In Q4, operational EBITDA was €36.2m (Q4 2022: €42.3m) with a €54m profit ex-US and a €17.8m loss in the US. Across 2023, operational EBITDA was €197.3m (2022: €208.5m) with a €254.7m profit ex-US and €57.4m loss in the US.
Monthly average customers for Q4 was 4.7 million, up 38 per cent YoY (Q4 2022: 3.4 million). For the full year, monthly average customers rose by 43 per cent to four million (2022: 2.8 million).
As of December 31, 2023, Super Group noted that unrestricted cash was €241.9m, down when compared to 2022’s €254.8m due to the DGC acquisition and related technology strategies.
CFO Alinda van Wyk stated: “For the fourth quarter, we delivered ex-US Revenue of €352m and ex-US operational EBITDA of €54m, which resulted in our December margin hitting 24 per cent, the strongest ever.
“To have surpassed our guidance, in the face of multiple headwinds, is indicative of our laser focus on realising cost efficiencies and investing in growth where we can see a clear return. In the US, the operational EBITDA loss was less than expected for the year and we are actively evaluating all of our options.”
‘Assessing’ options in US
Looking forward, Super Group has published its 2024 revenue and adjusted EBITDA guidance for operations ex-US and in the US.
Ex-US, Super Group has set a revenue guidance of €1.55bn for 2024, a 10 per cent increase YoY. Net revenue is expected to improve by 12 per cent, while the brand licence fee is expected to average €1.3m per month.
Excluding US operations, adjusted EBITDA guidance is expected to be less than €280m with a margin of less than 18 per cent following strong marketing investments in new and existing markets, as well as a continued optimisation of costs and investment into technology, AI and enhanced processes.
In the US, Super Group is “currently assessing a range of options” and expects adjusted EBITDA loss to not exceed 2023’s figure.
Menashe concluded: “Q4 2023 was particularly strong. Despite the challenging start, we set record-breaking totals for revenue, customer numbers and deposits cementing our position as a growing, cash-generative and geographically diverse online sports betting and igaming operator.
“Igaming continues to be the largest part of our business, allowing us to manage moments of volatility in the sportsbook to deliver record-breaking results. We are confident that we will achieve the double-digit top-line growth that we are projecting for 2024.”
