Super Group Reports Financial Results for First Quarter 2024
Super Group (SGHC) reported record revenue of €379.3 million for the first quarter of 2024, with a profit of €41.0 million, driven by growth in Africa and North America markets. The company achieved a 12% revenue increase, with Adjusted EBITDA reaching €46.5 million. Monthly Active Customers saw a 33% increase to 4.7 million. Cash and cash equivalents stood at €289.2 million as of March 31, 2024. The company continues to invest in high-growth areas while maintaining a lean operating model.
Record revenue of €379.3 million for Q1 2024.
Profit of €41.0 million driven by growth in Africa and North America.
12% revenue increase with Adjusted EBITDA at €46.5 million.
33% increase in Monthly Active Customers to 4.7 million.
Cash and cash equivalents of €289.2 million as of March 31, 2024.
Continued investment in high-growth areas with a focus on efficiency.
Loss for the period in the US amounted to €22.3 million.
Non-cash charge of €13.1 million for change in fair value of option liability.
Declines in revenue from the Middle East and Asia-Pacific markets.
Insights
The results unveiled by Super Group for Q1 2024 underscore a robust growth trajectory, particularly noting a 12% year-over-year increase in revenue to €379.3 million. This gain is pronounced when considering the constant currency growth rate of 17%, suggesting that the company has effectively mitigated currency fluctuation impacts. The reported profit of €41.0 million, while significant, must be observed with the understanding that a substantial portion, €40.1 million, stems from the sale of the B2B division of Digital Gaming Corporation Limited (DGC). Such one-time gains can inflate profit figures and are not indicative of recurring operational strength.
However, the expansion of Monthly Active Customers by 33% is a telling indicator of market penetration and potential for sustainable revenue streams. The geographical revenue breakdown signals a strong foothold in Africa, the Middle East and North America which collectively account for the majority of the revenue. The company's liquidity position also appears robust with a €289.2 million cache, marking a substantial increase from the end of the previous fiscal year.
From an investment standpoint, the Adjusted EBITDA growth to €46.5 million, up by 29%, is a key performance metric that strips away certain non-operational items, offering a clearer view of operating profitability. It's noteworthy that Adjusted EBITDA for the US registered a loss, which may warrant investor caution regarding market-specific uncertainties or investment phase costs in the region.
Understanding the market dynamics where Super Group operates is important for predicting the sustainability of its growth. The company's increased revenue from Africa and North America has eclipsed the decline seen in the Middle East and Asia-Pacific markets. Such geographic performance variability necessitates investor attention, especially as it may point to differential marketing effectiveness, regulatory changes, or competitive pressures in these regions.
On the product side, the revenue composition from online casino and sports betting reveals consumer preferences and market trends. The apparent dominance of online casino revenues, accounting for the lion's share of the revenue split, could be reflective of broader industry trends towards online gaming platforms over traditional sports betting, which may influence long-term strategic decisions within the company.
When examining Super Group's disclosure, it is essential to dissect the non-GAAP financial measures such as Adjusted EBITDA. While these measures offer additional lenses to assess the company's performance, they are not standardized across the industry and can vary from company to company. Investors should thus employ caution and seek to understand the specific adjustments made. This is particularly true with measures like the change in fair value of option liability, which has a significant non-cash impact on the company's financials.
Furthermore, the reliance on strategic disposals, such as the DGC's B2B division, can introduce volatility into the financial results. As regulatory landscapes evolve, especially concerning online gaming and betting, the company's performance across different regions may be affected. It is advisable for investors to stay attuned to such changes as they can have material impacts on the company's operations and by extension, its financial outcomes.
-
Revenue of
€379.3 million for the first quarter of 2024, representing the highest revenue recorded in a first quarter -
Profit for the three months ended March 31, 2024 of
€41.0 million , including a pre-tax gain of€40.1 million relating to the sale of the B2B division of DGC and a non-cash charge of€13.1 million for change in fair value of option liability -
Non-GAAP Adjusted EBITDA ex-US of
€68.7 million and a loss of€22.3 million from the US amounted to Adjusted EBITDA of€46.5 million -
Unrestricted cash was
€289.2 million as at March 31, 2024
Neal Menashe, Chief Executive Officer of Super Group, 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.”
Alinda van Wyk, Chief Financial Officer of Super Group, stated: "We achieved record results for a first quarter of
Financial Highlights:
-
Revenue increased by
12% to€379.3 million for the first quarter 2024 (constant currency:17% to€389.3 million ) from€338.5 million in the same period from the prior year driven by growth fromAfrica andNorth America (predominantlyCanada ) markets partially offset by declines from theMiddle East andAsia-Pacific market. -
Profit for the period was
€41.0 million for the first quarter 2024, which included a gain on disposal of the B2B division of Digital Gaming Corporation Limited ("DGC") of€40.1 million as well as a non-cash charge of€13.1 million related to the increase in fair value of option liability. Loss for the period of€1.9 million for the first quarter of 2023 included the non-cash charge of€2.2 million related to the change in fair value of option liability. -
Adjusted EBITDA, a non-GAAP measure, increased
29% to€46.5 million for the first quarter 2024 compared to€36.1 million in the first quarter of 2023. -
Monthly Active Customers increased
33% to 4.7 million during the first quarter of 2024 from 3.5 million in the first quarter of 2023. -
Cash and cash equivalents was
€289.2 million at March 31, 2024, up from€241.9 million at December 31, 2023. This net increase during the first quarter 2024 was the result of:-
Inflows from operating activities amounting to
€69.8 million ; -
Outflows from investing activities of
€20.4 million . This was mainly as a result of further investment in tangible and intangible assets of€20.6 million , predominantly due to the capitalization expenditure on software, issuance of loan to Apricot Investments Limited of€10.0 million and deferred consideration paid of€2.1 million relating to the 15 Marketing Limited acquisition. These were offset in part by€9.2 million consideration received from the sale of the B2B division of DGC, as well as€3.7 million resulting from receipts of interest and repayment of loans receivable; -
Outflows from financing activities of
€1.7 million due to lease payments; and -
A loss of
€0.5 million as a result of foreign currency fluctuations on foreign cash balances held over this period.
-
Inflows from operating activities amounting to
Revenue by Geographical Region for the Three Months Ended March 31, 2024 in € ‘000s: |
|||
Betway |
Spin |
Total |
|
|
139,274 |
396 |
139,670 |
|
7,927 |
27,115 |
35,042 |
|
39,006 |
18,620 |
57,626 |
|
32,298 |
108,596 |
140,894 |
South/ |
3,453 |
2,566 |
6,019 |
Total revenue |
221,958 |
157,293 |
379,251 |
|
% |
% |
% |
|
61 % |
0 % |
37 % |
|
4 % |
17 % |
9 % |
|
18 % |
12 % |
15 % |
|
15 % |
69 % |
37 % |
South/ |
2 % |
2 % |
2 % |
Revenue by Geographical Region for the Three Months Ended March 31, 2023 in € ‘000s: |
|||
Betway |
Spin |
Total |
|
|
87,424 |
455 |
87,879 |
|
35,048 |
22,949 |
57,997 |
|
34,489 |
21,338 |
55,827 |
|
37,655 |
92,550 |
130,205 |
South/ |
3,676 |
2,937 |
6,613 |
Total revenue |
198,292 |
140,229 |
338,521 |
|
% |
% |
% |
|
44 % |
0 % |
26 % |
|
18 % |
16 % |
17 % |
|
17 % |
15 % |
16 % |
|
19 % |
67 % |
39 % |
South/ |
2 % |
2 % |
2 % |
Revenue by product line for the Three Months Ended March 31, 2024 in € ‘000s: |
|||
|
Betway |
Spin |
Total |
Online casino1 |
135,304 |
156,858 |
292,162 |
Sports betting1 |
76,842 |
60 |
76,902 |
Brand licensing2 |
5,870 |
— |
5,870 |
Other3 |
3,942 |
375 |
4,317 |
Total revenue |
221,958 |
157,293 |
379,251 |
Revenue by product line for the Three Months Ended March 31, 2023 in € ‘000s:
|
|||
Betway |
Spin |
Total |
|
Online casino1 |
102,995 |
139,975 |
242,970 |
Sports betting1 |
81,432 |
45 |
81,477 |
Brand licensing2 |
8,832 |
— |
8,832 |
Other3 |
5,033 |
209 |
5,242 |
Total revenue |
198,292 |
140,229 |
338,521 |
1 |
Sports betting and online casino revenues are not within the scope of IFRS 15 ‘Revenue from Contracts with Customers’ and are treated as derivatives under IFRS 9 ‘Financial Instruments’. Fixed Odds Contingencies has been reclassified from sports in the prior period to online casino in order to align to the current year classification. Fixed Odds Contingencies are casino style games in respect of which the odds are agreed at the time of the bet and accepted under the sports licenses in certain jurisdictions. |
||
2 |
Brand licensing revenues are within the scope of IFRS 15 ‘Revenue from Contracts with Customers’. |
||
3 |
Other relates mainly to DGC usage fee income as well as profit share and outsource fees from external customers. |
Non-GAAP Financial Information
This press release includes non-GAAP financial information not presented in accordance with the International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board.
EBITDA, Adjusted EBITDA and revenue on a constant currency basis 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, finance income, finance expense and income tax expense/credit. Adjusted EBITDA is EBITDA adjusted for market closure costs, adjusted RSU expense, change in fair value of option liabilities, unrealized foreign currency gains and losses, gain on disposal of business and other adjustments. Constant currency revenue growth is calculated by translating non-Euro performance for 2023 and 2024 using 2023 exchange rates.
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 to the non-GAAP financial measures used in this press release and supplemental materials 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.
Reconciliation of Profit / (Loss) after taxation to EBITDA and Adjusted EBITDA for the three months ended March 31, in € ‘000s: |
||||
|
2024 |
|
2023 |
|
Profit / (loss) for the period |
40,964 |
|
(1,924 |
) |
Income tax expense |
7,745 |
|
6,437 |
|
Finance income |
(3,069 |
) |
(1,195 |
) |
Finance expense |
1,238 |
|
547 |
|
Depreciation and amortization expense |
19,902 |
|
21,445 |
|
EBITDA |
66,780 |
|
25,310 |
|
Market closure |
326 |
|
— |
|
Change in fair value of option |
13,106 |
|
2,191 |
|
RSU expense1 |
3,718 |
|
4,140 |
|
Unrealized foreign exchange1 |
3,126 |
|
3,111 |
|
Gain on disposal of business |
(40,135 |
) |
— |
|
Other adjustments1 |
(462 |
) |
1,315 |
|
Adjusted EBITDA |
46,459 |
|
36,067 |
|
|
|
|
||
Adjusted EBITDA, ex-US |
68,749 |
|
52,543 |
|
Adjusted EBITDA, US |
(22,290 |
) |
(16,476 |
) |
1 |
Adjusted EBITDA has been restated for the prior period presented to include unrealized foreign exchange movements, additional RSU expenses and other adjustments. |
Webcast Details
The Company will host a webcast at 8:30 a.m. ET today to discuss the first quarter 2024 financial results. Participants may access the live webcast and supplemental earnings presentation on the events & presentations page of the Super Group Investor Relations website at: https://investors.sghc.com/events-and-presentations/default.aspx.
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
Source: Super Group
Forward-Looking Statements
Certain statements made in this press release are “forward looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995.
These forward-looking statements include, but are not limited to, expectations and timing related to market entries and expansion, projections of market opportunity, growth and profitability of expected growth of Super Group’s customer base, expansion into new markets and expectations for the remainder of 2024.
These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “pipeline,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: (i) the ability to implement business plans, forecasts and other expectations, and identify and realize additional opportunities; (ii) the ability to maintain the listing of Super Group’s securities on a national securities exchange; (iii) changes in the competitive and regulated industries in which Super Group operates; (iv) variations in operating performance across competitors; (v) changes in laws and regulations affecting Super Group’s business; (vi) Super Group’s inability to meet or exceed its financial projections; (vii) changes in general economic conditions; (viii) changes in domestic and foreign business, market, financial, political and legal conditions; (ix) future global, regional or local economic and market conditions affecting the sports betting and gaming industry; (x) changes in existing laws and regulations, or their interpretation or enforcement, or the regulatory climate with respect to the sports betting and gaming industry; (xi) the ability of Super Group’s customers to deposit funds in order to participate in Super Group’s gaming products; (xii) compliance with regulatory requirements in a particular regulated jurisdiction, or Super Group’s ability to successfully obtain a license or permit applied for in a particular regulated jurisdiction, or maintain, renew or expand existing licenses; (xiii) the technological solutions Super Group has in place to block customers in certain jurisdictions, including jurisdictions where Super Group’s business is illegal, or which are sanctioned by countries in which Super Group operates from accessing its offerings; (xiv) Super Group’s ability to restrict and manage betting limits at the individual customer level based on individual customer profiles and risk level to the enterprise; (xv) the ability by Super Group’s key executives, certain employees or other individuals related to the business, including significant shareholders, to obtain the necessary licenses or comply with individual regulatory obligations in certain jurisdictions; (xvi) protection or enforcement of Super Group’s intellectual property rights, the confidentiality of its trade secrets and confidential information, or the costs involved in protecting or enforcing Super Group’s intellectual property rights and confidential information; (xvii) compliance with applicable data protection and privacy laws in Super Group’s collection, storage and use, including sharing and international transfers, of personal data; (xviii) failures, errors, defects or disruptions in Super Group’s information technology and other systems and platforms; (xix) Super Group’s ability to develop new products, services, and solutions, bring them to market in a timely manner, and make enhancements to its platform; (xx) Super Group’s ability to maintain and grow its market share, including its ability to enter new markets and acquire and retain paying customers; (xxi) the success, including win or hold rates, of existing and future online betting and gaming products; (xxii) competition within the broader entertainment industry; (xxiii) Super Group’s reliance on strategic relationships with land based casinos, sports teams, event planners, local licensing partners and advertisers; (xxiv) events or media coverage relating to, or the popularity of, online betting and gaming industry; (xxv) trading, liability management and pricing risk related to Super Group’s participation in the sports betting and gaming industry; (xxvi) accessibility to the services of banks, credit card issuers and payment processing services providers due to the nature of Super Group’s business; (xxvii) the regulatory approvals related to proposed acquisitions and the integration of the acquired businesses; and (xxviii) other risks and uncertainties indicated from time to time for Super Group including those under the heading “Risk Factors” in our Annual Report on Form 20-F filed with the SEC on April 25, 2024, and in Super Group’s other filings with the SEC. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in other documents filed or that may be filed by Super Group from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Super Group assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Super Group does not give any assurance that it will achieve its expectations.
Super Group (SGHC) Limited Unaudited Consolidated Statements of Profit or Loss and Other Comprehensive Income for the three months ended March 31, 2024 and 2023 (€ in '000s, except for shares and profit (loss) per share) |
|||||
|
2024 |
|
|
2023 |
|
Revenue |
379,251 |
|
|
338,521 |
|
Direct and marketing expenses |
(303,890 |
) |
|
(275,710 |
) |
General and administrative expenses |
(39,202 |
) |
|
(36,591 |
) |
Other operating income |
3,592 |
|
|
1,281 |
|
Gain on disposal of business |
40,135 |
|
|
— |
|
Depreciation and amortization expense |
(19,902 |
) |
|
(21,445 |
) |
Finance income |
3,069 |
|
|
1,195 |
|
Finance expense |
(1,238 |
) |
|
(547 |
) |
Change in fair value of option |
(13,106 |
) |
|
(2,191 |
) |
Profit before taxation |
48,709 |
|
|
4,513 |
|
Income tax expense |
(7,746 |
) |
|
(6,437 |
) |
Profit / (loss) for the period |
40,964 |
|
|
(1,924 |
) |
|
|
|
|
||
Profit / (loss) for the period attributable to: |
|
|
|
||
Owners of the parent |
41,176 |
|
|
(2,406 |
) |
Non-controlling interest |
(212 |
) |
|
482 |
|
|
40,964 |
|
|
(1,924 |
) |
Other comprehensive income items that may be reclassified subsequently to profit |
|
|
|
||
Foreign currency translation |
6,112 |
|
|
(1,982 |
) |
Other comprehensive income / (expense) for the period |
6,112 |
|
|
(1,982 |
) |
|
|
|
|
||
Total comprehensive profit / (loss) for the period |
47,076 |
|
|
(3,906 |
) |
|
|
|
|
||
Total comprehensive profit / (loss) for the period attributable to: |
|
|
|
||
Owners of the parent |
47,288 |
|
|
(4,388 |
) |
Non-controlling interest |
(212 |
) |
|
482 |
|
|
47,076 |
|
|
(3,906 |
) |
|
|
|
|
||
Weighted average shares outstanding, basic |
500,566,918 |
|
|
498,154,854 |
|
Weighted average shares outstanding, diluted |
501,937,886 |
|
|
498,154,854 |
|
|
|
|
|
||
Profit / (loss) per share, basic (cents) |
8.23 |
|
|
(0.48 |
) |
Profit / (loss) per share, diluted (cents) |
8.20 |
|
|
(0.48 |
) |
Super Group (SGHC) Limited Consolidated Statements of Financial Position as at March 31, 2024 and December 31, 2023 (€ in '000s) |
||||
|
Unaudited |
|
||
|
2024 |
|
2023 |
|
ASSETS |
|
|
||
Non‐current assets |
|
|
||
Intangible assets |
193,091 |
|
193,395 |
|
Goodwill |
96,035 |
|
94,915 |
|
Property, plant and equipment |
17,327 |
|
17,406 |
|
Right-of-use assets |
23,224 |
|
24,866 |
|
Deferred tax assets |
35,368 |
|
36,703 |
|
Regulatory deposits |
12,501 |
|
11,951 |
|
Loans receivable |
99,092 |
|
89,090 |
|
Investments in non-listed equity |
174 |
|
174 |
|
|
476,812 |
|
468,500 |
|
Current assets |
|
|
||
Trade and other receivables |
133,681 |
|
154,615 |
|
| Loans receivable | 6,087 |
6,719 |
||
Income tax receivables |
17,230 |
|
12,535 |
|
Restricted cash |
37,745 |
|
38,287 |
|
Cash and cash equivalents |
289,185 |
|
241,923 |
|
Assets held for sale |
— |
|
38,292 |
|
|
483,928 |
|
492,371 |
|
TOTAL ASSETS |
960,740 |
|
960,871 |
|
|
|
|
||
Non-Current liabilities |
|
|
||
Lease liabilities |
22,451 |
|
23,919 |
|
Deferred tax liability |
3,582 |
|
4,684 |
|
Derivative financial instruments |
2,056 |
|
2,056 |
|
Deferred and contingent consideration |
327 |
322 |
||
|
28,416 |
|
30,981 |
|
Current liabilities |
|
|
||
Lease liabilities |
5,425 |
|
5,226 |
|
Interest-bearing loans and borrowings |
68 |
|
87 |
|
Deferred and contingent consideration |
305 |
|
2,392 |
|
Trade and other payables |
232,776 |
|
195,392 |
|
Customer liabilities |
57,585 |
|
67,592 |
|
Provisions |
8,432 |
|
44,826 |
|
Income tax payables |
38,145 |
|
25,840 |
|
Derivative liability associated with assets held for sale |
— |
|
42,600 |
|
Liabilities associated with assets held for sale |
— |
|
7,140 |
|
|
342,736 |
|
391,095 |
|
TOTAL LIABILITIES |
371,152 |
|
422,076 |
|
EQUITY |
|
|
||
Issued capital |
289,753 |
|
289,753 |
|
Treasury stock |
(2,632 |
) |
(2,632 |
) |
Foreign exchange reserve |
(1,312 |
) |
(7,424 |
) |
Retained profit |
285,511 |
|
240,618 |
|
Equity attributable to owners of the parent |
571,320 |
|
520,315 |
|
Non-controlling Interest |
18,268 |
|
18,480 |
|
SHAREHOLDERS' EQUITY |
589,588 |
|
538,795 |
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
960,740 |
|
960,871 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240507230573/en/
Investors:
investors@sghc.com
Media:
media@sghc.com
Source: Super Group
FAQ
What was Super Group's revenue for the first quarter of 2024?
Super Group reported revenue of €379.3 million for the first quarter of 2024.
What was the Adjusted EBITDA for Super Group in Q1 2024?
Super Group's Adjusted EBITDA for the first quarter of 2024 was €46.5 million.
How many Monthly Active Customers did Super Group have in Q1 2024?
Super Group saw a 33% increase in Monthly Active Customers to 4.7 million in the first quarter of 2024.
What was the Cash and cash equivalents amount for Super Group as of March 31, 2024?
Super Group had Cash and cash equivalents of €289.2 million as of March 31, 2024.
In which regions did Super Group experience revenue growth in Q1 2024?
Super Group experienced revenue growth in Africa and North America markets in the first quarter of 2024.
