Super Group Files Its Annual Report on Form 20-F

Rhea-AI Summary

Super Group (SGHC) Limited has filed its annual report on Form 20-F for the year ended December 31, 2022. This report includes audited financial results and adjustments from preliminary results previously announced on March 14, 2023. Key adjustments include a €15.1 million increase in a derivative liability related to the B2B division sale and an additional lease expense of €2.1 million. These adjustments reduced profit before tax but did not affect revenue, Operational EBITDA, or cash. The final reported revenue was €1,292.2 million with a profit before tax of €216.5 million, indicating significant performance despite adjustments. The report highlights Super Group's strong position within the online sports betting and gaming sectors.

Positive

• Final revenue for 2022 was €1,292.2 million.
• Profit before tax for the year reached €216.5 million.

Negative

• Profit before tax was reduced by €15.1 million due to an increase in derivative liability.
• An additional lease expense of €2.1 million further impacted profit before tax.

NEW YORK--(BUSINESS WIRE)-- Super Group (SGHC) Limited (NYSE: SGHC) (“SGHC” or “Super Group”), the parent company of Betway, a leading online sports betting and gaming business, and Spin, the multi-brand online casino, today filed its annual report on Form 20-F for the year ended December 31, 2022 (the "2022 Annual Report”) with the U.S. Securities and Exchange Commission (the "SEC"). Super Group previously announced preliminary financial results in a press release issued on March 14, 2023, which noted that the results were subject to change upon completion of the audit of Super Group’s financial statements for the year ended December 31, 2022.

The audited financial results disclosed in the 2022 Annual Report include two adjustments to the preliminary financial results: (1) the recording of an increase in fair value of €15.1 million in a derivative liability associated with the option agreement to sell the B2B division of Digital Gaming Corporation as of December 31, 2022, which resulted in a reduction in profit before tax of that amount for the three months and year ended December 31, 2022; and (2) in accordance with IFRS 16, Super Group recognized additional lease expense, which reduced profit before tax by €2.1 million for each of the three months and year ended December 31, 2022. The lease expense adjustment also reduced Adjusted EBITDA by €0.7 million.

Revenue, Operational EBITDA and Cash were not impacted by either of these adjustments.

The below table illustrates the changes between the preliminary results included in the March 14, 2023 press release and the audited financial statements included in the 2022 Annual Report:

		Three Months Ended December 31, 2022						Twelve Months Ended December 31, 2022
(€ in thousands)		Preliminary		Change		Final		Preliminary		Change		Final
Revenue		329,096		-		329,096		1,292,210		-		1,292,210
Profit before tax		38,297		(17,228)		21,069		233,740		(17,231)		216,509
EBITDA		56,133		(15,805)		40,328		298,168		(15,806)		282,361
Adjusted EBITDA		17,985		(678)		17,307		199,218		(679)		198,539
Operational EBITDA		42,312		-		42,312		208,461		-		208,461

The 2022 Annual Report can be accessed by visiting either the SEC's website at www.sec.gov or Super Group's investor relations website at https://investors.sghc.com/overview/default.aspx.

Non-GAAP Financial Information 
This press release includes non-GAAP financial information not presented in accordance with the International Financial Reporting Standards (“IFRS”).

EBITDA, Adjusted EBITDA and Operational EBITDA are non-GAAP company-specific performance measures that Super Group uses to supplement the Company’s results presented in accordance with IFRS. EBITDA is defined as profit before depreciation, amortization, financial income, financial expense and income tax expense/credit. Adjusted EBITDA is defined as EBITDA less gain on derivative contracts and gain on bargain purchase plus transaction costs, share-based payment expense, and fair value adjustments on warrant liabilities and earnout liabilities and associated foreign exchange movements. Operational EBITDA is Adjusted EBITDA further adjusted to exclude unrealized foreign currency gains and losses and other non-recurring adjustments outside of the current year’s operations as may be deemed appropriate by the company’s audit committee.

Super Group believes that these non-GAAP measures are useful in evaluating the Company’s operating performance as they are similar to measures reported by the Company’s public competitors and are regularly used by securities analysts, institutional investors and other interested parties in analyzing operating performance and prospects.

Management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with IFRS. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses that are required by IFRS to be recorded in Super Group’s financial statements. In order to compensate for these limitations, management presents non-GAAP financial measures together with IFRS results. Non-GAAP measures should be considered in addition to results and guidance prepared in accordance with IFRS, but should not be considered a substitute for, or superior to, IFRS results.

Reconciliation tables of the most comparable IFRS financial measure (revised in accordance with the adjustments described above) to the non-GAAP financial measures used in this press release are included below. Super Group urges investors to review the reconciliation and not to rely on any single financial measure to evaluate its business. In addition, other companies, including companies in our industry, may calculate similarly named non-GAAP measures differently than we do, which limits their usefulness in comparing our financial results with theirs.

About Super Group (SGHC) Limited 
Super Group (SGHC) Limited is the holding company for leading global online sports betting and gaming businesses: Betway, a premier online sports betting brand, and Spin, a multi-brand online casino offering. The group is licensed in multiple jurisdictions, with leading positions in key markets throughout Europe, the Americas and Africa. The group’s sports betting and online gaming offerings are underpinned by its scale and leading technology, enabling fast and effective entry into new markets. Its proprietary marketing and data analytics engine empowers it to responsibly provide a unique and personalized customer experience. For more information, visit www.sghc.com.

Reconciliation of Profit before tax to EBITDA and Adjusted EBITDA and Operational EBITDA:

		For the three months ended December 31,		For the twelve months ended December 31,
		2022	2021	2022	2021
Revenue		329,096	341,050	1,292,210	1,320,658
Profit before tax		21,069	62,592	216,509	225,908
Finance income		(970)	(291)	(2,222)	(1,312)
Finance expense		407	329	1,345	6,370
Depreciation and amortization expense		19,822	20,574	66,729	83,560
EBITDA		40,328	83,204	282,361	314,526
Transaction fees		1,358	7,107	22,969	7,107
Gain on derivative contracts		-	(15,830)	(4,148)	(15,830)
Gain on bargain purchase		-	(5,688)	-	(16,349)
Share based payment expense		-	-	126,252	-
Foreign exchange on revaluation of warrants and earnouts		(4,696)	-	25,047	-
Change in fair value of warrant liability		(773)	-	(34,518)	-
Change in fair value of earnout liability		(45,140)	-	(237,354)	-
Change in fair value of options		15,691	-	(6,292)	-
RSU expense		10,539	-	24,222	-
Adjusted EBITDA		17,307	68,793	198,539	289,454
Unrealized foreign exchange		22,149	(2,941)	2,643	(3,167)
Consolidation entries and audit journals		361	(1,234)	(7,278)	(2,279)
Pre-acquisition profit/(loss)		(1,367)	(53)	(1,162)	14,647
Non recurring and non current operating adjustments		3,863	5,008	15,719	4,107
Operational EBITDA		42,312	69,572	208,461	302,761

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230426005963/en/

Investors:

investors@sghc.com

Media:

media@sghc.com

Source: Super Group

FAQ

What are the final financial results for Super Group (SGHC) in 2022?

Super Group's final revenue for 2022 was €1,292.2 million, with a profit before tax of €216.5 million.

How did the adjustments in the annual report affect Super Group's profits?

The adjustments reduced Super Group's profit before tax by a total of €17.2 million due to a derivative liability increase and additional lease expenses.

When was Super Group's annual report filed?

Super Group filed its annual report on Form 20-F on April 26, 2023.

Where can I find Super Group's 2022 Annual Report?

The report can be accessed on the SEC's website or Super Group's investor relations website.