Revenue for Betway was up 7.6% year-on-year in Q2 to €246.3m, with the brand performing particularly well in Africa and Middle East (€152.8m). Europe was the brand’s second best region as revenue hit €45m, up 23%.
North America was Spin’s strongest region, recording €112m in revenue during Q2. The casino-focused brand’s revenue across all regions came in at €168.5m, an increase of 11% from 2023.
Monthly active customers were also up by 21% in the second quarter to 4.5 million as icasino accounted for a clear majority (78%) of the overall revenue.
Growth in Africa and Middle East region, which accounted for €153.6m in the second quarter, helped drive the uptick in the group’s performance. Alongside North America, the two markets accounted for 73% of the group revenue during the three-month period, with North America bringing in €150.1m.
Super Group pulled its Betway sportsbook brand from the US in July, with an adjusted EBITDA loss of €16.4m relating to the disposal was recorded in Q2.
“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,” group CEO Neal Menashe said.
Super Group plans to reinvest in US igaming
Speaking to analysts, Super Group president and CCO Richard Hasson said the firm would look to reinvest up to €40m in the US annually if it continues to reap returns in the two states were its igaming business Spin remains live.
However, Hasson confirmed the group would keep a close eye on US performance by setting monthly net win targets to ensure continued profitability.
He said €40m was the most it would invest in the US each year, and the firm would pivot away from other markets where profitability suffers.
Super Group’s igaming offering remains live in New Jersey and Pennsylvania despite its sports betting business withdrawing from US in July. An extensive review concluded the betting arm did not have a long-term path to profitability.
Germany has become “onerous” as players flock to black market
Hasson reiterated plans to streamline Super Group’s focus on key markets. “In the past we were homed in on too many countries,” he said. “We closed a few of them and that allowed us to focus on the other ones. That’s the same process we went through with the US sportsbook.”
“In some markets there are regulations are a big part of it, in the UK they seem to be easing up a little bit, whereas the Netherlands was far worse so we decided not to go for it.
“The one that’s probably been the worst was Germany. there they have done done all the [regulatory] work, but it’s so onerous the customer is just going to the black market and we can’t compete as we could in the past. I think over time the regulator will understand and be more reasonable with those that are regulated.”
DGC impairment hits bottom line but EBTIDA increases
In terms of the bottom line, adjusted EBITDA increased 8% to €81.9m, compared to €75.9m in Q2 2023, while the group closed June off with €306.8m in its cash reserves. This was buoyed by €104.5m from operating activities during the first six months of the year.
The firm also reported capex outgoings of €42.9m from its reserves during H1.
Losses for Q2 came in at €0.8m, including €36.8m relating to impaired Digital Gaming Corporation assets.
Chief financial officer Alinda van Wyk said the growth was down to a continued focus on key markets and significant progress in realising cost efficiencies.
Original article: https://igamingbusiness.com/finance/quarterly-results/super-group-q2-2024/
