Excluding US operations, revenue was €374.0m for the quarter, a rise of 16.0% and a record for Super Group.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) was €70.0m, up by 32.6% year-on-year. Excluding the US, this was €82.6m, up 54.2%.
On Super Group’s Q2 earnings call Alinda van Wyk, chief financial officer highlighted Super Group’s new quarterly records, which included an all-time monthly high of 3.9 million active customers in April.
“We set multiple new records, including our highest EBITDA total revenue in a quarter,” she said. “Our customer numbers are stronger than ever and will be a key driver of future growth in our business.”
Neal Menashe, chief executive of Super Group said there had been steady quarter-on-quarter growth, particularly in its customer base.
“We experienced continued growth of our customer base with strong momentum continuing on from where quarter one left off,” he said. “April was really good, with a new monthly record of 3.9 million active customers in the month.
“For the quarter, we achieved a new record of 3.7 million average active customers per month, compared to 2.7 million in the prior year quarter, a 40% increase.”
Menashe also pointed to “consistent investment” in new customer acquisition as a point of strength.
Betway African and Middle Eastern performance boosts overall revenue
Looking at Super Group’s two businesses, Betway and Spin, Betway accounted for €228.9m of the total revenue. This was a rise of 28.1%. Spin made up the remaining €151.8m, ticking up by 6.8%.
When considering the revenue by location, much of it – €110.3m – came from operations in Africa and the Middle East. Betway accounted for €110.0m of this alone. In the report, Super Group noted that growth in the Africa and Middle East segment aided the overall revenue.
Menashe declared that Africa continued to be a “strong performer” during the quarter, “despite some adverse currency fluctuations”.
The second-highest revenue contributor came from Super Group’s North America operations, at €137.1m.
Q2 net profit dives €271.0m comparably
Direct and marketing expenses for the quarter totalled at €277.3m, up by 22.8% yearly. General and administrative expenses were €37.8m, while depreciation and amortisation expenses were €20.3m.
After factoring in other operating income at €1.0m, the operating profit for the quarter was €46.3m, up by 3.2%.
Other costs, consisting of finance expenses and change in fair value of option, totaled at €6.6m. Finance income at €2.0m offset this slightly, bringing the pre-tax profit to €41.7m.
In Q2 2022, Super Group recorded €219.3m in change in fair value of earnout liability. This boosted the pre-tax profit for that period to €304.1m, resulting in a major difference of €262.4m when compared to Q2 2023.
Super Group paid €14.2m in tax during the quarter, bringing the total net profit to €27.5m for Q2. This was a drop of €271.0m.
North American operations improve half-year revenue
Turning to the six months to 30 June, revenue stood at €719.3m, up by 9.7% yearly.
Betway accounted for €427.2m of this while Spin made up €292.0m.
While Africa and the Middle East beat out North America as the highest revenue contributor in Q2, this is a different story when considering H1 as a whole. North America accounted for €267.3m of the total revenue during the six months, while Africa and the Middle East generated €198.2m.
In January, Super Group acquired Digital Gaming Corporation, the online sports betting business that owns Betway in the US. At the time, Super Group said this would allow it to launch in the US.
Following expenses – the highest of which was direct and marketing expenses at €553.0m – the operating profit was €52.3m, down 24.0%.
Finance income at €3.2m was affected slightly by €1.0m in finance expense. After €8.2m in change in fair value of option, the pre-tax profit was €46.2m.
In total, Super Group paid €20.6m in tax during the quarter. This left the net profit at €25.6m, declining by 81.0%
Original article: https://igamingbusiness.com/finance/super-group-lauds-enriched-customer-base-in-q2/
