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Super Group hits €1bn mark in 2023

| By Richard Mulligan
Super Group achieved its highest-ever revenue for a third quarter, but profitability is still being constrained by its US operations.

Super Group, the owner of Betway and Spin, saw revenue increase by 16% year-on-year to €356.9m ($380.6m/£310.4m) for the third quarter. This was, it said, driven by growth from Africa & Middle East, European and North American markets. Revenue was up 27% to €390.8m by constant currency.

North America remains its largest market, accounting for 38% of revenue. However, this figure was down from the 40% it comprised in Q2 2022. In dollar terms, North American revenue was up 9% year-on-year to €134.0m despite a slight fall within its Spin segment. Africa & Middle East now accounts for 28% of business, compared to just 23% a year ago.

However, those gains were partially offset by declines from the South/Latin America and Asia-Pacific markets.

Online casino remains by far Super Group’s largest segment, worth 62% of the total. Online casino revenue grew by 12% year-on-year to €219.0m.

Super Group’s global monthly active customers increased 44% to 4.0 million during the period from 2.7 million in the third quarter of 2022.

Neal Menashe, chief executive of Super Group, 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.”

Marketing costs continue to hamper Super Group

While revenue grew by 16%, business expenses also soared. Direct and marketing expenses during the period were up 19% year-on-year to $270.8m. This segment of expenditure therefore accounts for 76% of Super Group’s total revenue, compared to 74% in Q2 2022.

Operational EBITDA was €53.8m for the third quarter 2023, which was up 8% year-on-year. The measure for the third quarter 2023 was comprised of €64.1m ex-US and a loss of €10.3m in the US.

Profit for the period was €10.6m, which included a non-cash charge of €14.2m related to Digital Gaming Corporation (DGC), which it acquired in January 2023. The charge was for an increase in fair value of a liability for a call option granted to a third-party to purchase the B2B division of DGC. The profit figure was well down on Q3 2023, although the prior period included the positive impact of non-cash adjustments of €22.0m.

Alinda van Wyk, chief financial officer of Super Group, said: “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.”

Super Group hits €1bn milestone

Super Group reached more than €1bn of revenue during the first nine months of the year. Revenue of €1.08bn was up 11% compared to the same period in 2022. North American revenue is down 3% year-on-year to $401.3m.

Operational and adjusted EBITDA was similar for 2023 compared to 2023. EBITDA and profitability comparisons shed little light due to a number of one-off items, such as the costs of Super Group’s listing on the New York Stock Exchange in 2022.

In October 2023, Super Group announced that it had ceased providing any services to the Indian market due to changes to the Indian goods and services tax. However, it said the withdrawal would not impact financial forecasts for the year.

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