SGHC Super Group SGHC Limited

• Revenue of €402.9 million for the third quarter of 2024, representing the highest revenue recorded in a third quarter

• Profit for the three months ended September 30, 2024 of €8.5 million

• Non-GAAP Adjusted EBITDA ex-US of €95.4 million for the three months ended September 30, 2024, a record for a third quarter, was offset by non-GAAP Adjusted EBITDA, US loss of €11.5 million, resulting in total non-GAAP Adjusted EBITDA of €83.9 million

• Unrestricted cash of €296.6 million at September 30, 2024

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 announced third quarter 2024 unaudited consolidated financial results.

Neal Menashe, Chief Executive Officer of Super Group, commented: “We achieved our strongest third quarter ever, highlighting the phenomenal progress we are making as a business. There is still tremendous potential as we experience super growth across our global casino brands, and particularly in Africa which we have scaled to be our largest region for the second quarter running. Given our continued strong performance and robust balance sheet, we are exploring ways to return excess cash to shareholders, and intend to discuss with the board a possible further special dividend before the end of the year.”

Alinda van Wyk, Chief Financial Officer of Super Group, stated: "This quarter was our best ex-US third quarter ever, achieving total revenue of €395 million and Adjusted EBITDA of €95 million. We are focusing on consistent growth in our key markets, while striving to maximize operational and marketing cost efficiencies across the group, which resulted in a margin of 24% for the second quarter in a row – well ahead of our long-term target of 20%. Following the strong performance of the business over the first three quarters and an early look at a strong October, we are increasing our ex-US Adjusted EBITDA full-year 2024 guidance to be greater than €345 million."

Financial Highlights:

• Revenue increased by 13% to €402.9 million for the third quarter of 2024 (constant currency: 15% to €410.9 million) from €356.9 million in the same period of the prior year, driven by growth from the Africa, Europe and North America (predominantly Canada) markets partially offset by declines from the Middle East and Asia-Pacific markets.
• Profit for the period was €8.5 million for the third quarter of 2024. Profit for the period of €10.6 million for the third quarter of 2023 included a non-cash charge of €14.2 million related to the change in fair value of option liability.
• Adjusted EBITDA, a non-GAAP measure, increased by 60% to €83.9 million for the third quarter of 2024 compared to €52.5 million in the third quarter of 2023.
• Monthly Active Customers increased by 17% to 4.7 million during the third quarter of 2024 from 4.0 million in the third quarter of 2023.
• Cash and cash equivalents was €296.6 million at September 30, 2024, up from €241.9 million at December 31, 2023. This net increase during the nine months ended September 30, 2024 was the result of:
  • Inflows from operating activities amounting to €159.1 million;
  • Outflows from investing activities of €59.2 million. This was mainly as a result of further investment in tangible and intangible assets of €63.6 million, predominantly due to the capitalization of expenditure on software, issuance of a loan to Apricot Investments Limited of €10.0 million, deferred consideration paid of €2.5 million relating to the 15 Marketing Limited acquisition and cash paid of €2.0 million for an investment in associate. These outflows were offset in part by €9.2 million of consideration received from the sale of the B2B division of DGC, as well as €9.2 million resulting from receipts of interest and repayment of loans receivable;
  • Outflows from financing activities of €51.9 million, mainly due to dividends paid of €46.1 million and lease payments of €5.7 million; and
  • A gain of €6.7 million as a result of foreign currency fluctuations on foreign cash balances held over this period.

Revenue by Geographical Region for the Three Months Ended September 30, 2024 in € ‘000s:

 

Betway

Spin

Total

Africa and Middle East

150,171

1,000

151,171

Asia-Pacific

5,139

28,577

33,716

Europe

47,018

20,374

67,392

North America

33,796

110,997

144,793

South/Latin America

3,245

2,536

5,781

Total revenue

239,369

163,484

402,853

 

%

%

%

Africa and Middle East

63 %

1 %

38 %

Asia-Pacific

2 %

17 %

8 %

Europe

20 %

12 %

17 %

North America

14 %

68 %

36 %

South/Latin America

1 %

2 %

1 %

Revenue by Geographical Region for the Three Months Ended September 30, 2023 in € ‘000s:

 

Betway

Spin

Total

Africa and Middle East

99,381

673

100,054

Asia-Pacific

35,014

26,968

61,982

Europe

34,823

19,197

54,020

North America

33,645

100,443

134,088

South/Latin America

3,538

3,206

6,744

Total revenue

206,401

150,487

356,888

 

%

%

%

Africa and Middle East

48 %

0 %

28 %

Asia-Pacific

17 %

18 %

17 %

Europe

17 %

13 %

15 %

North America

16 %

67 %

38 %

South/Latin America

2 %

2 %

2 %

Revenue by Geographical Region for the Nine Months Ended September 30, 2024 in € ‘000s:

 

Betway

Spin

Total

Africa and Middle East

442,201

2,283

444,484

Asia-Pacific

19,805

85,971

105,776

Europe

130,937

59,623

190,560

North America

104,408

331,369

435,777

South/Latin America

10,233

10,021

20,254

Total revenue

707,584

489,267

1,196,851

 

%

%

%

Africa and Middle East

62 %

0 %

37 %

Asia-Pacific

3 %

18 %

9 %

Europe

19 %

12 %

16 %

North America

15 %

68 %

36 %

South/Latin America

1 %

2 %

2 %

Revenue by Geographical Region for the Nine Months Ended September 30, 2023 in € ‘000s:

 

Betway

Spin

Total

Africa and Middle East

296,834

1,425

298,259

Asia-Pacific

111,205

77,888

189,093

Europe

105,831

61,143

166,974

North America

108,889

292,510

401,399

South/Latin America

10,871

9,602

20,473

Total revenue

633,630

442,568

1,076,198

 

%

%

%

Africa and Middle East

46 %

0 %

27 %

Asia-Pacific

18 %

18 %

18 %

Europe

17 %

14 %

16 %

North America

17 %

66 %

37 %

South/Latin America

2 %

2 %

2 %

Revenue by product line for the Three Months Ended September 30, 2024 in € ‘000s:

 

Betway

Spin

Total

Online casino1

166,878

163,281

330,159

Sports betting1

67,136

—

67,136

Brand licensing2

3,653

—

3,653

Other3

1,702

203

1,905

Total revenue

239,369

163,484

402,853

Revenue by product line for the Three Months Ended September 30, 2023 in € ‘000s:

 

Betway

Spin

Total

Online casino1

126,891

150,215

277,106

Sports betting1

64,566

—

64,566

Brand licensing2

8,294

—

8,294

Other3

6,650

272

6,922

Total revenue

206,401

150,487

356,888

Revenue by product line for the Nine Months Ended September 30, 2024 in € ‘000s:

 

Betway

Spin

Total

Online casino1

460,909

488,385

949,294

Sports betting1

224,485

60

224,545

Brand licensing2

14,781

—

14,781

Other3

7,409

822

8,231

Total revenue

707,584

489,267

1,196,851

Revenue by product line for the Nine Months Ended September 30, 2023 in € ‘000s:

 

Betway

Spin

Total

Online casino1

350,711

441,812

792,523

Sports betting1

240,213

44

240,257

Brand licensing2

25,441

—

25,441

Other3

17,265

712

17,977

Total revenue

633,630

442,568

1,076,198

 

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’.

2 Brand licensing revenues are within the scope of IFRS 15 ‘Revenue from Contracts with Customers’.

3 Other relates to profit share, royalties 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, Adjusted EBITDA, ex-US, Adjusted EBITDA, US 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. Adjusted EBITDA is EBITDA adjusted for RSU expense, change in fair value of options, unrealized foreign exchange, gain on disposal of business, impairment of assets, US sportsbook closure, market closure and other adjustments. Adjusted EBITDA, ex-US is Adjusted EBITDA relating to the rest the group, excluding Digital Gaming Corporation ('DGC'). Adjusted EBITDA, US is Adjusted EBITDA relating to the DGC. 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 provide additional perspective on the financial performance of our core business, 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, other than revenue on a constant currency basis, 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 after taxation to EBITDA and Adjusted EBITDA

for the Three and Nine Months Ended September 30, in € ‘000s:

 

Three Months Ended September 30

 

Nine Months Ended September 30

 

 

2024

 

2023

 

2024

 

2023

 

Profit for the period

8,464

 

10,626

 

48,528

 

36,262

 

Income tax expense

14,390

 

4,748

 

43,489

 

25,387

 

Finance income

(2,345

)

(2,535

)

(8,017

)

(5,800

)

Finance expense

2,051

 

695

 

4,722

 

1,779

 

Depreciation and amortization expense

18,822

 

19,848

 

60,548

 

61,603

 

EBITDA

41,382

 

33,382

 

149,270

 

119,231

 

Change in fair value of options

—

 

14,217

 

12,838

 

22,495

 

RSU expense

973

 

5,803

 

8,123

 

14,429

 

Unrealized foreign exchange

3,047

 

(907

)

7,792

 

3,168

 

US Sportsbook closure

32,749

 

—

 

32,749

 

—

 

Market closure

5,414

 

—

 

5,834

 

—

 

Gain on disposal of business

—

 

—

 

(40,135

)

—

 

Impairment of assets

—

 

—

 

36,775

 

—

 

Other adjustments1

355

 

9

 

(1,049

)

5,370

 

Adjusted EBITDA

83,920

 

52,504

 

212,197

 

164,693

 

 

 

 

 

 

 

 

Adjusted EBITDA, ex-US

95,376

 

62,826

 

262,314

 

203,988

 

Adjusted EBITDA, US

(11,456

)

(10,322

)

(50,117

)

(39,295

)

   

1 Adjusted EBITDA has been restated for the prior period presented to include other adjustments. Other adjustments in 2023 includes bad debt and SOX implementation fees relating to new acquisitions.

   

Webcast Details

The Company will host a webcast at 8:30 a.m. ET today to discuss the third 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. Listed on the New York Stock Exchange (NYSE ticker: SGHC), the Group is licensed in multiple jurisdictions, with leading positions in key markets throughout Europe, the Americas and Africa. The Group’s successful sports betting and online gaming offerings are underpinned by its scale and leading technology, enabling fast and effective entry into new markets. Super Group has been ranked no. 6 in the EGR Power 50 for the last two years. For more information, visit www.supergroup.com.

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, Super Group’s intention to pay a possible special dividend, including the expected timing of such dividend, expectations and projections of market opportunity, growth and profitability, and expectations for the remainder of 2024, including ex-US Adjusted EBITDA guidance for the full year 2024.

These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “pipeline,” "possible," “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) changes in the competitive and regulated industries in which Super Group operates; (iii) variations in operating performance across competitors; (iv) changes in laws and regulations affecting Super Group’s business; (v) Super Group’s inability to meet or exceed its financial projections; (vi) changes in general economic conditions; (vii) changes in domestic and foreign business, market, financial, political and legal conditions; (viii) the ability of Super Group’s customers to deposit funds in order to participate in Super Group’s gaming products; (ix) Super Group’s ability, and the ability of Super Group’s key executives, certain employees, significant shareholders or other applicable individuals, to comply with regulatory requirements or successfully obtain a license or permit required in a particular regulated jurisdiction, or maintain, renew or expand existing licenses; (x) the effectiveness of 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; (xi) 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; (xii) Super Group's ability to protect or enforce its 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; (xiii) compliance with applicable data protection and privacy laws in Super Group’s collection, storage and use, including sharing and international transfers, of personal data; (xiv) failures, errors, defects or disruptions in Super Group’s information technology and other systems and platforms; (xv) 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; (xvi) Super Group’s ability to maintain and grow its market share, including its ability to enter new markets and acquire and retain paying customers; (xvii) the success, including win or hold rates, of existing and future online betting and gaming products; (xiii) competition within the broader entertainment industry; (xix) Super Group’s reliance on strategic relationships with land based casinos, sports teams, event planners, local licensing partners and advertisers; (xx) events or media coverage relating to, or the popularity of, online betting and gaming industry; (xxi) trading, liability management and pricing risk related to Super Group’s participation in the sports betting and gaming industry; (xxii) accessibility to the services of banks, credit card issuers and payment processing services providers due to the nature of Super Group’s business; (xxiii) the regulatory approvals related to proposed acquisitions and the integration of the acquired businesses; and (xxiv) 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 and Nine Months Ended September 30, 2024 and 2023 (€ in '000s, except for shares and profit per share)

 

Three Months Ended September 30

 

 

Nine Months Ended September 30

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Revenue

402,853

 

 

356,888

 

 

1,196,851

 

 

1,076,198

 

Direct and marketing expenses

(320,474

)

 

(270,839

)

 

(923,601

)

 

(823,879

)

General and administrative expenses

(41,367

)

 

(38,810

)

 

(119,335

)

 

(113,262

)

Other operating income

95

 

 

360

 

 

4,407

 

 

2,669

 

Gain on disposal of business

—

 

 

—

 

 

40,135

 

 

—

 

Depreciation and amortization expense

(18,822

)

 

(19,848

)

 

(60,548

)

 

(61,603

)

Impairment of assets

—

 

 

—

 

 

(36,775

)

 

—

 

Finance income

2,345

 

 

2,535

 

 

8,017

 

 

5,800

 

Finance expense

(2,051

)

 

(695

)

 

(4,722

)

 

(1,779

)

Change in fair value of options

—

 

 

(14,217

)

 

(12,838

)

 

(22,495

)

Share of post-tax profit of equity accounted associate

275

 

 

—

 

 

426

 

 

—

 

Profit before taxation

22,854

 

 

15,374

 

 

92,017

 

 

61,649

 

Income tax expense

(14,390

)

 

(4,748

)

 

(43,489

)

 

(25,387

)

Profit for the period

8,464

 

 

10,626

 

 

48,528

 

 

36,262

 

 

 

 

 

 

 

 

 

 

 

Profit / (loss) for the period attributable to:

 

 

 

 

 

 

 

 

 

Owners of the parent

8,360

 

 

9,876

 

 

48,650

 

 

34,050

 

Non-controlling interest

104

 

 

750

 

 

(122

)

 

2,212

 

 

8,464

 

 

10,626

 

 

48,528

 

 

36,262

 

Other comprehensive income items that may be reclassified subsequently to profit

 

 

 

 

 

 

 

 

 

Foreign currency translation

3,556

 

 

5,251

 

 

19,211

 

 

4,459

 

Other comprehensive income for the period

3,556

 

 

5,251

 

 

19,211

 

 

4,459

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive profit for the period

12,020

 

 

15,877

 

 

67,739

 

 

40,721

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive profit / (loss) for the period attributable to:

 

 

 

 

 

 

 

 

 

Owners of the parent

11,916

 

 

15,127

 

 

67,861

 

 

38,509

 

Non-controlling interest

104

 

 

750

 

 

(122

)

 

2,212

 

 

12,020

 

 

15,877

 

 

67,739

 

 

40,721

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding, basic

502,015,727

 

 

498,360,431

 

 

501,345,672

 

 

498,336,881

 

Weighted average shares outstanding, diluted

504,156,731

 

 

500,333,127

 

 

503,001,771

 

 

500,478,521

 

 

 

 

 

 

 

 

 

 

 

Profit per share, basic (cents)

1.67

 

 

1.98

 

 

9.70

 

 

6.83

 

Profit per share, diluted (cents)

1.66

 

 

1.97

 

 

9.67

 

 

6.80

 

Super Group (SGHC) Limited Consolidated Statements of Financial Position as at September 30, 2024 and December 31, 2023 (€ in '000s)

 

 

Unaudited

 

 

 

 

2024

 

 

2023

 

ASSETS

 

 

 

 

Non‐current assets

 

 

 

 

Intangible assets

 

163,965

 

 

193,395

 

Goodwill

 

89,458

 

 

94,915

 

Property, plant and equipment

 

16,742

 

 

17,406

 

Right-of-use assets

 

65,998

 

 

24,866

 

Deferred tax assets

 

43,150

 

 

36,703

 

Regulatory deposits

 

12,923

 

 

11,951

 

Loans receivable

 

48

 

 

89,090

 

Investment in associate

 

2,579

 

 

—

 

Financial assets, including derivative

 

452

 

 

174

 

Prepayment for sportsbook software1

 

102,437

 

 

—

 

 

 

497,752

 

 

468,500

 

Current assets

 

 

 

 

Trade and other receivables

 

142,874

 

 

154,615

 

Loans receivable

 

5,093

 

 

6,719

 

Income tax receivables

 

380

 

 

12,535

 

Restricted cash

 

37,910

 

 

38,287

 

Cash and cash equivalents

 

296,626

 

 

241,923

 

Assets held for sale

 

—

 

 

38,292

 

 

 

482,883

 

 

492,371

 

TOTAL ASSETS

 

980,635

 

 

960,871

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

Lease liabilities

 

64,997

 

 

23,919

 

Deferred tax liability

 

2,258

 

 

4,684

 

Derivative financial instruments

 

2,058

 

 

2,056

 

Provisions

 

1,078

 

 

—

 

Contingent consideration

 

—

 

 

322

 

 

 

70,391

 

 

30,981

 

Current liabilities

 

 

 

 

Lease liabilities

 

5,320

 

 

5,226

 

Interest-bearing loans and borrowings

 

32

 

 

87

 

Deferred and contingent consideration

 

338

 

 

2,392

 

Trade and other payables

 

241,672

 

 

195,392

 

Customer liabilities

 

57,072

 

 

67,592

 

Provisions

 

6,987

 

 

44,826

 

Income tax payables

 

30,913

 

 

25,840

 

Derivative liability associated with assets held for sale

 

—

 

 

42,600

 

Liabilities associated with assets held for sale

 

—

 

 

7,140

 

 

 

342,334

 

 

391,095

 

TOTAL LIABILITIES

 

412,725

 

 

422,076

 

EQUITY

 

 

 

 

Issued capital

 

289,753

 

 

289,753

 

Treasury shares

 

(2,632

)

 

(2,632

)

Accumulated other comprehensive profit / (deficit)

 

11,788

 

 

(7,424

)

Retained profit

 

250,668

 

 

240,618

 

Equity attributable to owners of the parent

 

549,577

 

 

520,315

 

Non-controlling interest

 

18,333

 

 

18,480

 

SHAREHOLDERS' EQUITY

 

567,910

 

 

538,795

 

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

 

980,635

 

 

960,871

 

1 The Prepayment for sportsbook software relates to a reclassification of the loan receivable from Apricot Investments Limited. This reclassification has been made to reflect the latest position with regards to the proposed acquisition of the Sportsbook Technology Platform.

 

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