Super Group’s CEO Neal Menashe has called the second quarter of 2024 the operator’s “strongest quarter ever” with revenue reaching an all-time quarterly record.
CFO Alinda van Wyk noted that the Betway and Spin parent company “achieved new quarterly records for the ex-US business” across total revenue and adjusted EBITDA, adding that ex-US adjusted EBITDA guidance for the full year has been raised.
Super Group also provided additional information on its exit plan for its US sportsbook product, which the company announced last month, as well as its maintenance direction for igaming operations in the market.
Revenue growth
Publishing its financial results, Super Group declared revenue of €414.7m, an all-time quarterly record as well as a 9% increase year-over-year (Q2 2023: €380.8m). In constant currency, revenue rose by 11% YoY to €422.5m.
The company stated that the quarter’s performance was “driven by growth from the Africa and North America (predominantly Canada) markets partially offset by declines from the Middle East and Asia-Pacific markets”.
Per region, Africa and Middle East revenue stood at €153.6m for the quarter (2023: €110.3m), followed by North America at €150.1m (2023: €137.1m), Europe at €65.5m (2023: €57.1m), Asia-Pacific at €37m (2023: €69.1m) and South/Latin America at €8.5m (2023: €7.1m).
Per product line, online casino operations revenue stood at €323.2m (2023: €272.4m), sports betting revenue came in at €84.3m (2023: €94.2m), brand licensing revenue was €5.3m (2023: €8.3m) and other revenue was €2m (2023: €5.8m).
Splitting up revenue per brand, Betway operations generated €246.3m (2023: €228.9m) while Spin operations produced €168.5m (2023: €151.9m). Monthly active customers rose by 21% YoY in Q2 to 4.5 million (2023: 3.7 million).
The Q2 results come a month after Super Group announced that it would be undertaking an exit plan for its US sportsbook product.
Menashe commented: “The second quarter of 2024 was our strongest quarter ever and demonstrates the exceptional progress we continue to make as a business. I’m glad we have reached a conclusion in shutting the US sports betting market and we continue more generally to optimise our global footprint both in terms of geography and product.
“I’m really excited to welcome English Premier League champions, Manchester City, and South Africa’s Premier Soccer League, now known as the Betway Premiership, to our brand sponsorship portfolio. Our outlook for the remainder of the year is strong, and we look forward to making 2024 a super year for Super Group.”
Ex-US adjusted EBITDA guidance raised
Super Group reported a loss for Q2 of €0.8m, which the company said “includes non-cash charges of €36.8m relating to the impairment of DGC-related assets”. Profit for the period of €27.6m “included a non-cash charge of €6.1m related to the change in fair value of option liability”.
Meanwhile, adjusted EBITDA rose by 8% YoY to €81.9m (2023: €75.9m). Ex-US adjusted EBITDA reached its highest quarterly figure to date of €98.3m (2023: €88.4m). Adjusted EBITDA from the US stood at a loss of €16.4m (2023: €12.5m loss).
As of 30 June 2024, cash and cash equivalents were €306.8m, a net increase on the same six-month period the previous year (2023: €241.9m).
Van Wyk stated: “We achieved new quarterly records for the ex-US business for both total revenue of €408m and adjusted EBITDA of €98m. The continued focus of growth in key markets, along with the significant progress made on realising cost efficiencies, contributed to a strong second quarter ex-US EBITDA margin of 24%.
“Given the strength we have seen in the first half of the year, we are confident in raising our ex-US adjusted EBITDA guidance for the full year 2024 to greater than €300m. Finally, our debt-free balance sheet continues to show strength, and we were pleased to return capital to shareholders through the announcement of our first ever dividend.”
US igaming expansion still possible
Super Group also provided additional information on its exit plan for its US sportsbook, announced in July, as well as its maintenance direction for its igaming operations.
For igaming, two brands from the Spin portfolio, including Jackpot City, will operate in the US states of New Jersey and Pennsylvania.
The company added that it will have the “ability to expand igaming footprint for appropriate opportunities”.
Meanwhile, Super Group’s sportsbook product will be shut down across the US – Arizona, Colorado, Indiana, Iowa, Louisiana, New Jersey, Ohio, Pennsylvania and Virginia – and costs for this process are not expected to exceed €45m.
This cost includes “redundancy costs, settlement of existing contracts and a maximum provision for the wind down of the sportsbook product”.
However, Super Group noted this figure is subject to change and that an updated number will be provided in its next quarterly update.
The company stated that H1 actual adjusted EBITDA for the US – igaming and sportsbook – stood at a loss of €39m, while H2 adjusted EBITDA of igaming-only – excluding any ongoing sportsbook costs pre-shutdown – is expected to be a loss of €20m.