Super Group, the parent company of Betway and Spin, has announced its “strongest quarter ever” for Q2 of 2024. The company saw record revenue of €414.7 million ($452.4 million) in the quarter, representing a 9% increase year-over-year (YoY) from €380.8 million ($415.42 million) in the same period of 2023.
On a constant currency basis, this growth is even more pronounced at 11%, with revenue rising to €422.5 million ($460.91 million). However, the company reported a net loss of €0.8 million ($0.87 million) for the quarter, primarily driven by non-cash charges amounting to €36.8 million ($40.15 million) “related to the impairment of Digital Gaming Corporation (DGC) assets.”
In contrast, the second quarter of 2023 saw a profit of €27.6 million ($30.11 million), which included a €6.1 million ($6.65 million) non-cash charge associated with changes in the fair value of option liability.
Super Group’s Adjusted EBITDA increased by 8% to €81.9 million ($89.35 million), up from €75.9 million ($82.8 million) in Q2 2023. Excluding the US market, Adjusted EBITDA reached a record €98.3 million ($107.24 million), the highest quarterly figure to date, driven by strong performance in key international markets. However, this was offset by an Adjusted EBITDA loss of €16.4 million ($17.89 million) from its US operations.
The company’s revenue growth was primarily driven by its operations in Africa and North America (predominantly Canada), with these regions accounting for 37% and 36% of the total revenue, respectively. south a and the Middle East reported a revenue of €153.6 million ($167.56 million), a substantial increase from €110.3 million ($120.33 million) in Q2 2023. North America followed with €150.1 million ($163.74 million), up from €137.1 million ($149.56 million).
Conversely, revenue from the Asia-Pacific region declined significantly to €37 million ($40.36 million), down from €69.1 million ($75.38 million) in the same period last year, reflecting challenges in this market. Europe contributed €65.5 million ($71.45 million), up from €57.1 million ($62.29 million) in Q2 2023, while South and Latin America generated €8.5 million ($9.27 million), a slight increase from €7.1 million ($7.75 million).
By product line, online casino operations continued to dominate, generating €323.2 million in revenue, a notable rise from €272.4 million ($297.16 million) in Q2 2023. Sports betting revenue, however, declined to €84.3 million from €94.2 million ($102.76 million), while brand licensing and other revenues also saw decreases.
Super Group’s CEO, Neal Menashe, said: “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 optimize our global footprint both in terms of geography and product.”
The quarter also marked key developments in Super Group’s brand sponsorship portfolio, including partnerships with English Premier League champions Manchester City and South Africa’s Premier Soccer League, now rebranded as the Betway Premiership.
Chief Financial Officer Alinda van Wyk emphasized the company’s operational efficiency and market focus, particularly outside the US. “We achieved new quarterly records for the ex-US business for both total revenue of €408 million ($445.09 million) and Adjusted EBITDA of €98 million ($106.91 million). The continued focus on growth in key markets, along with the significant progress made on realizing cost efficiencies, contributed to a strong second quarter ex-US EBITDA margin of 24%.”
Given the strong performance in the first half of 2024, Super Group has raised its ex-US Adjusted EBITDA guidance for the full year to over €300 million ($327.27 million). Super Group’s strategic decision to exit the US sports betting market, announced last month, was a major highlight of the quarter.
The company confirmed that it would wind down its sportsbook operations across several US states, including Arizona, Colorado, Indiana, Iowa, Louisiana, New Jersey, Ohio, Pennsylvania, and Virginia. The total cost associated with this exit is not expected to exceed €45 million, covering redundancy costs, settlement of existing contracts, and provisions for the wind-down process.
Despite the exit from sports betting, Super Group remains committed to its US iGaming operations. Two brands from the Spin portfolio, including Jackpot City, will continue to operate in New Jersey and Pennsylvania, with potential for further expansion depending on market conditions.
Super Group President and Chief Commercial Officer Richard Hasson mentioned the company’s intent to reinvest up to €40 million ($49 million) annually into its US iGaming business if it continues to perform well. “We see significant opportunities in the US iGaming sector, and we are prepared to make substantial investments to capitalize on these opportunities,” said Hasson.
As of June 30, 2024, Super Group reported unrestricted cash of €306.8 million ($334.69 million), up from €241.9 million ($263.89 million) at the end of 2023. The net increase was attributed to strong inflows from operating activities, amounting to €104.5 million ($114 million).
Van Wyk concluded: “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.”