Super Group has reported its highest ever third quarter revenue figure in Q3 2024, as the operator’s turnover surpassed €400m during the period and rose by more than 10% year-over-year.
The parent company of Betway and Spin noted that the performance during the quarter was driven by growth in Africa, Europe and North America, while CEO Neal Menashe added that the group also achieved “super growth” across its global casino brands.
As a result of its performance throughout the year to date, Super Group is increasing its ex-US adjusted EBITDA full-year 2024 guidance to greater than €345m.
New Q3 revenue high
Publishing its Q3 results, the company reported a 13% YoY revenue increase to €402.9m (Q3 2023: €356.9m), its highest revenue recorded ever in the third quarter. In constant currency (cc), revenue rose by 15% to €410.9m.
Super Group noted that the revenue growth was “driven by growth from the Africa, Europe and North America (predominantly Canada) markets partially offset by declines from the Middle East and Asia-Pacific markets”.
Per product, online casino revenue for the company stood at €330.2m at the end of Q3 (2023: €277.1m), sports betting was €67.1m (2023: €64.6m), brand licensing was €3.7m (2023: €8.3m) and other revenue was €1.9m (2023: €6.9m).
Betway revenue stood at €239.4m (2023: €206.4m) while Spin revenue was €163.5m (2023: €150.5m). Monthly active customers during the quarter increased by 17% YoY to 4.7 million (2023: four million).
Revenue per region segment, Africa and Middle East stood at €151.2m (2023: €100.1m), followed by North America with €144.8m (2023: €134.1m), Europe with €67.4m (2023: €54m), Asia-Pacific with €33.7m (2023: €62m) and South/Latin America with €5.8m (2023: €6.7m).
“We achieved our strongest third quarter ever, highlighting the phenomenal progress we are making as a business,” commented Menashe.
“There is still tremendous potential as we experience super growth across our global casino brands, and particularly in Africa which we have scaled to be our largest region for the second quarter running.
“Given our continued strong performance and robust balance sheet, we are exploring ways to return excess cash to shareholders, and intend to discuss with the board a possible further special dividend before the end of the year.”
Regional market updates
Excluding US operations, overall revenue stood at €395m, up 15% YoY, 17% in cc, and by 24% when adjusting for the closure of operations in India. Sports betting revenue increased by 4% (4% cc) to €67m, while online casino revenue rose by 17% (20% cc) to €322m.
Other revenue fell by 45% (43% cc) to €5m mainly due to a decrease in brand licence fees.
Betway had a 59% overall revenue share (2023: 56%) while Spin’s revenue share was 41% (2023: 44%). Online casino overall revenue share stood at 83% (2023: 81%) while online sports betting revenue share was 17% (2023: 19%).
Revenue share per region, Africa had a 39% share (2023: 29%), followed by the Americas with 36% (2023: 39%), Europe with 17% (2023: 16%) and RoW with 8% (2023: 16%).
Specifically in Africa, Super Group stated that it has a “strong competitive advantage across the continent” with a significant local presence and growth opportunities, operational in seven markets with “podium positions” in five of them.
As for the US, the company noted it has completed its exit from the US sportsbook market, which cost approximately €36m, which was €9m lower than its previous estimate of €45m.
Currently, Super Group is also continuing to assess its igaming strategy in the region, as it has planned operations of “two brands from the Spin portfolio (including Jackpot City) in both New Jersey and Pennsylvania”.
Actual Q3 adjusted EBITDA in the US stood at a loss of €11m, comprising a €10.5m loss for igaming and a €0.9m loss incurred during the sportsbook wind down.
Increasing ex-US adjusted EBITDA 2024 guidance
Profit in Q3 was €8.5m, down on Q3 2023’s €10.6m which “included a non-cash charge of €14.2m related to the change in fair value of option liability”.
Adjusted EBITDA rose by 60% YoY to €83.9m (2023: €52.5m). Ex-US adjusted EBITDA increased by 52% to a third quarter record of €95m (2023: €62.8m) with a new margin high of 24%.
As of 30 September, cash and cash equivalents was €296.6m (2023: €241.9m).
Super Group also announced that it is increasing its ex-US adjusted EBITDA full-year 2024 guidance to greater than €345m.
CFO Alinda van Wyk stated: “This quarter was our best ex-US third quarter ever, achieving total revenue of €395m and adjusted EBITDA of €95m.
“We are focusing on consistent growth in our key markets, while striving to maximise operational and marketing cost efficiencies across the group, which resulted in a margin of 24% for the second quarter in a row – well ahead of our long-term target of 20%.
“Following the strong performance of the business over the first three quarters and an early look at a strong October, we are increasing our ex-US Adjusted EBITDA full-year 2024 guidance to be greater than €345m.”
