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.”

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Increasing the levy last October, which was previously at 18%, has caused significant disruption to the Indian gaming sector and led to widespread criticism from the sector. 

The rise was officially implemented in January by regional state governor Arif Mohammed Khan and has been felt across the gambling space including  casino. 

It has also led to calls from the industry for it to be transitioned into a tax on Gross Gaming Revenue rather than deposits, in a bid to secure stability for the industry. However, these have been dismissed by the governance in the region. 

The changes have forced some major operators like Superbet, the parent company of Betway, to hastily exit the market.

Superbet stated upon departing the market: “The newly effective tax rules make the Indian market no longer commercially viable for Super Group.”

Neal Menashe, CEO of Super Group, added at the time: “We are continuously evaluating evolving regulatory landscapes across the many markets we serve. 

“Informed by years of operating our geographically diverse business, we remain confident about the long-term growth opportunities in front of us.”

In order to compare the current tax regime with the economic landscape in previous years, Ernst & Young (EY) and the US-India Strategic Partnership Forum (USISPF) published a report showcasing that India’s gambling sector attracted over $2.6bn in investments in 2019. 

The analysis then adds that there has been no capital raised from domestic or global investors since the 28% GST tax was signed into force almost a year ago. At the latest GST Council meeting however, Nirmala Sitharaman, Minister of Corporate Affairs, justified the levy’s adoption with the apparent increase in revenue from online gambling, which she said jumped by 412% to Rs 6,909 Crore (£628m) in the six months after the new tax threshold was introduced (November-April).

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The move will add Playtech’s roster of in-house casino content to Betway’s South African casino platform, bolstering the service with premium casino games as well as live casino titles produced by the supplier. 

Phillip Superamonien, Country Manager of South Africa at Betway, added: “We are delighted to grow our partnership with Playtech into South Africa. Our already successful partnerships in various markets have provided our players with Playtech’s top-tier gaming content and our superior user experience makes this partnership a perfect fit. 

“We are excited to bring Playtech’s renowned casino and live casino products to our South African customers, expanding our existing suite of games to provide new, exciting, and engaging gaming experiences within a safe and secure environment.”

Playtech has highlighted South Africa as a “key market” following the partnership, heralding the region’s “rapid growth and influential position within the African gaming industry”. 

Diane Crookes, Senior Commercial Director at Playtech, added: “Betway is a brand renowned for delivering an excellent player experience internationally and we are thrilled to extend our successful partnership into the South African market. 

“Our collaborations in multiple key markets have been incredibly successful, and we are confident that South Africa will be no exception. We are confident that Playtech’s innovative products and services will enhance Betway’s player experience even further and we look forward to our continued partnership.”

Through this partnership, Playtech continues to offer its online casino content to major operators across several territories. Last week, the supplier partnered with bet365 to launch an exclusive Spanish-language roulette title, Super Spin Roulette.

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The agreement will see Betway and Chelsea unite in their ambitions to elevate fan engagement through the creation of content, exclusive experiences and a myriad of further activations off the back of the link.

Casper Stylsvig, Chief Revenue Officer at Chelsea Football Club, said: “We are really pleased to welcome Betway as our Official European Betting Partner. Their commitment to creating engaging and memorable experiences for fans aligns perfectly with our values at Chelsea. 

“This partnership will offer our supporters incredible opportunities to connect with the club, from interacting with current and legendary players to enjoying VIP hospitality and behind-the-scenes access. We look forward to a successful and dynamic collaboration with Betway over the coming years.”

The online betting and gaming company’s branding will feature on the LED advertising boards surrounding the pitch during all domestic matches, enhancing its visibility to millions of fans globally. 

Neal Menashe, CEO of Super Group, added on the deal: “We are incredibly proud to partner with the two-time UEFA Champions League winners and the five-time Premier League champions. An amazing achievement. Chelsea is a truly global club with a hugely successful history. This partnership is a super opportunity for Betway to expand its brand and to reward our loyal customers and engage with football fans in new and thrilling ways. We are super excited to work alongside this club.”

It continues a flurry of Premier League partnerships for Betway having previously agreed deals with Nottingham Forest and Manchester City prior to the start of the 2024/25 campaign. 

Menashe emphasised after the Forest deal was announced that “Betway’s customers love football, especially the Premier League, and we leverage partnerships like this to reward them with exclusive opportunities and content”.

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Through a long-term agreement, the Betway brand will be featured virtually on LEDs around the football club’s pitch at the Stadio Renato Dall’Ara, alongside offering customers VIP tickets and exclusive experiences such as meet and greets and play-on-the-pitch opportunities.

In addition, the online sports betting and gaming brand of Super Group will provide an in-depth code of conduct and responsible gaming training to all Bologna players and staff, complementing the club’s existing efforts by covering regulations, education on gambling-related harms and the available tools and support. 

“We are excited to become the ‘Global Betting Partner’ of Bologna FC 1909, a club known for its illustrious history including seven Serie A titles,” commented Neal Menashe, CEO of Super Group.

“With our extensive and varied global sports sponsorship portfolio, we are delighted to once again have an official betting partnership in the world-renowned Italian football league. 

“Our collaboration will strictly follow industry marketing standards and emphasise responsible gambling. We eagerly anticipate supporting Bologna FC in their domestic and European campaigns in the years ahead.” 

Bologna joins a list of football clubs that have secured a partnership with Betway in recent months, including the Premier League’s Nottingham Forest and Manchester City.

Christoph Winterling, Commercial and Marketing Director at Bologna FC 1909, added: “We are thrilled to welcome Betway as our global betting partner. This collaboration highlights our club’s commercial strength and our commitment to delivering unique experiences to our supporters. 

“Partnering with a renowned global brand like Betway is incredibly exciting for us, and we are proud to join their esteemed sports portfolio. We look forward to working together to promote responsible gambling and enhance fan engagement.”

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Through the agreement, Betway’s logo will be featured on LED advertising boards around the football club’s stadium, the City Ground, on all Premier League, FA Cup and Carabao Cup matchdays.

Alongside branding rights, the deal also includes a range of benefits to engage new and existing customers, including tickets, merchandise and ‘play on the pitch’ opportunities. 

Neal Menashe, CEO of Super Group, the parent company of Betway, commented: “We’re thrilled to embark on this partnership with Nottingham Forest, a club with a rich history and a passionate fanbase. 

“Betway’s customers love football, especially the Premier League, and we leverage partnerships like this to reward them with exclusive opportunities and content.”

Betway will also work closely with Nottingham Forest to provide training and initiatives as part of a joint and ongoing commitment to safer gambling. 

Nottingham Forest joins several Premier League teams that have partnered with Betway, including West Ham United, Arsenal, Brighton & Hove Albion and Manchester City.

“We are delighted to welcome Betway as our ‘Official Betting Partner’,” Paul Bell, Chief Operating Officer at Nottingham Forest.

“Their reputation for excellence and commitment to enhancing the fan experience makes them a perfect partner for Nottingham Forest. This partnership will bring new opportunities for our supporters, from matchday experiences to unique fan engagement initiatives. We look forward to working closely with Betway over the coming seasons.”

Earlier this month, Super Group published its Q2 2024 results, calling the financial period its “strongest quarter ever” with revenue reaching an all-time quarterly record of €414.7m.

The group also provided additional information on its exit plan for its US sportsbook product, as well as its maintenance direction for igaming operations in the North American market.

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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.

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Through the agreement, Super Group’s online sports betting and gaming brand will be the football club’s official global betting partner from the start of the 2024/25 season.

To mark the deal, Super Group CEO Neal Menashe and City Football Group CEO Ferran Soriano took part in the opening bell ceremony together at the New York Stock Exchange on July 26.

“We are absolutely delighted to become Manchester City’s Official Global Betting Partner,” commented Menashe on the agreement.

“This agreement cements our place in the top tier of Premier League partners, ensuring that our Betway brand reaches fans in all corners of the globe.”

Throughout the partnership, Man City and Betway will collaborate on several activations and exclusive content opportunities, with the betting brand also featuring across digital and in-stadia assets.

In addition, the two parties will provide training to all players, coaches, management and staff on all relevant codes of conduct relating to betting integrity and responsible gambling. This will be delivered alongside the work the club already does to support players and staff in this area.  

Soriano added: “We are pleased to announce Betway as our Official Global Betting Partner today. 

“As a globally recognised brand, Betway has a strong pedigree and history of working with high-profile brands within the sports space and we’re excited to work together throughout the partnership.”

Alongside Man City, Betway’s sports sponsorship portfolio includes Premier League teams Arsenal, West Ham United and Brighton & Hove Albion, as well as teams in La Liga, the NBA and more.

Super Group will report its financial results for the second quarter of 2024 on August 7.

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Following the completion of an extensive internal review, the parent company of Betway and Spin has stated that, alongside relevant regulators and partners, it will shortly begin the process to fully close its US sportsbook operations in the nine states where it is currently live.

However, the operator’s igaming presence across the US will be maintained, with plans to operate two igaming brands from its Spin portfolio in both New Jersey and Pennsylvania.

Super Group disclosed that it was assessing its US options when the company published its fourth quarter 2023 results earlier this year in March.

Neal Menashe, CEO of Super Group, commented: “As a global business, we constantly evaluate the optimal use of our resources across all markets in which we operate. We have recently concluded an extensive review of our US operations and, at present, we do not see a long-term path to profitability for the sportsbook product.

“The vast majority of Super Group’s revenue is generated in igaming and, in line with that strategy, we will continue to offer our leading casino product in New Jersey and Pennsylvania. We are open to expanding our US footprint if the right investment or strategic opportunities arise.”

Super Group added that during its next quarterly earnings call scheduled for early August, the company’s management will provide information on the expected costs and charges in connection with its US sportsbook operation closure.

“Such costs and charges, while not insignificant, will not have any impact on Super Group’s previously communicated capital allocation or operating plans,” the group explained. 

“Non-US earnings, which have historically been reported separately, will not be negatively impacted by this closure.”

Within Super Group’s Q1 2024 financial statement in May, the operator reported group revenue of €379.3m (Q1 2023: €338.5m), up 12 per cent year-over-year. Excluding US operations, total revenue for the quarter was €374m, up 13 per cent YoY.

Adjusted EBITDA for Q1 improved by 29 per cent YoY to €46.5m (2023: €36.1m), but the group declared an adjusted EBITDA loss for its US operations of €22m (2023: €16.5m loss).

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In response to the strong start to 2024, CEO Neal Manshe stated that the Betway and Spin parent company has a “solid foundation” for the remainder of the year thanks to its “global team’s ongoing focus and investment into core markets that are yielding strong returns”.

However, US operations are still under review, as the region reported an adjusted EBITDA loss of €22m for the period.

Publishing its Q1 results, Super Group declared a 12 per cent increase YoY in revenue to €379.3m (Q1 2023: €338.5m). In constant currency, revenue rose by 17 per cent to €389.3m.

The operator stated that revenue improvements occurred following “growth from Africa and North America (predominantly Canada) markets partially offset by declines from the Middle East and Asia-Pacific market”.

Per region, North America alongside Africa and Middle East tied at 37 per cent of the total revenue share during Q1, followed by Europe at 15 per cent, Asia-Pacific at nine per cent and South/Latin America at two per cent.

Excluding US operations, total revenue for the quarter stood at €374m, up 13 per cent YoY or 17 per cent in constant currency.

Per brand, Betway reported €222m in revenue during the quarter (2023: €198.3m), while Spin had €157.3m in revenue (2023: €140.2m).

Per vertical, online casino revenue stood at €292.2m (2023: €243m), sports betting revenue was €76.9m (2023: €81.5m), brand licensing revenue was €5.9m (2023: €8.8m) and other revenue was €4.3m (2023: €5.24m).

Super Group reported profit for the period was €41m (2023: €1.9m loss), which included “a gain on disposal of the B2B division of Digital Gaming Corporation Limited of €40.1m” in addition to “a non-cash charge of €13.1m related to the increase in fair value of option liability”.

Adjusted EBITDA improved by 29 per cent YoY to €46.5m (2023: €36.1m). Excluding US business, adjusted EBITDA stood at €69m, up 29 per cent YoY (2023: €53m) with a margin of 18 per cent.

While active in nine states, Super Group stated that it is still assessing its US operations, with the region reporting an adjusted EBITDA loss of €22m (2023: €16.5m loss). 

Monthly active customers for the quarter rose by 33 per cent to 4.7 million in comparison to 3.5 million during the same period last year.

Menashe commented: “We’ve had a phenomenal start to the year, continuing our momentum from a strong end to 2023.

“This robust performance has been delivered by our global team’s ongoing focus and investment into core markets that are yielding strong returns, providing us with a solid foundation for the remainder of the year.”

As of March 31, cash and cash equivalents stood at €289.2m (2023: €241.9m). 

The operator noted that a cash increase occurred due to inflows of €69.8m from operating activities, as well as outflows of investing activities of €20.4m and financing activities of €1.7m due to lease payments, in addition to a loss of €0.5m as a result of foreign currency fluctuations on foreign cash balances held over this period.

Post Q1, Super Group has entered into a definitive agreement to assume full control of sportsbook software technology licensed by its software partner, Apricot.

The technology is being acquired for a total consideration of c.€140m, consisting of c.€100m set off against a current loan receivable and an additional €40m payable in two equal instalments over the next two years, of which up to €20m may be paid in ordinary shares of Super Group at its sole discretion. 

In addition, further payments of up to €210m could be made through a contingent earn-out mechanism if sportsbook revenue more than doubles during the earn-out period, which runs through December 31, 2035. This is calculated as a percentage of monthly sportsbook net gaming revenue, ranging from a low single-digit to a high single-digit percentage.

Alinda van Wyk, CFO of Super Group, added: “We achieved record results for a first quarter of €374m of revenue and €69m of adjusted EBITDA, for the ex-US business. 

“Our laser focus on creating a leaner, more efficient operating model has delivered results, with Q1 operating expenses as a percentage of net revenue falling to below 19 per cent. Investment into high-growth areas of the business continues at pace and we remain confident that we are in a strong position to realise our goals set for 2024.”

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