A Record-Breaking Quarter for Revenue – But at a Cost
Super Group, the parent company of Betway, has hit its highest-ever Q3 revenue, raking in €402.9 million. Yet, the celebratory mood was tempered by a 20.3% dip in profit, dropping to €8.5 million compared to €10.6 million in the same quarter last year. While these numbers highlight global growth, the sting of an €11.5 million EBITDA loss in the US has made its mark.
Super Group announced its decision in July to exit the US market, pulling Betway out of nine states after a strategic review indicated the region wasn’t likely to turn profitable in the long term. CEO Neal Menashe explained, “We achieved our strongest third quarter ever,” noting that Africa is now leading revenue, with the continent becoming their top region for the second consecutive quarter.
Africa Takes the Lead as US Bows Out
While the US contributed to some red ink, other markets stepped up. Africa emerged as the revenue star in Q3, accounting for 63% of Betway’s earnings across the Africa-Middle East region, far outpacing Europe (20%) and North America (14%). Betway’s total Q3 revenue was €239.4 million, down slightly from Q2, while Spin, the igaming arm, posted €163.5 million.
Africa’s performance was bolstered by Super Group’s “always-on” Betway brand and Spin’s popularity, both of which are tailored to suit the continent’s booming gaming market. Super Group’s revenue from Africa hit €151.2 million, representing 38% of its total Q3 intake of €402.9 million.
A Closer Look: Revenue Mix and Regional Dynamics
As the company sharpens its focus on key growth regions, Europe remains a solid player, generating €67.4 million in Q3, while North America also held strong at €114.8 million, contributing to 36% of Super Group’s revenue. Notably, Spin’s North American presence has become a standout performer, delivering €100.4 million.
Meanwhile, the Middle East and Asia-Pacific markets saw slight declines. Super Group attributed some of this downtrend to shifting market dynamics, but overall, the company remained buoyed by growth in key areas, as the group’s total monthly active customer base reached 4.7 million, marking a 17% rise year-on-year.
A Cash-Heavy Outlook and Revised Guidance
Super Group wrapped Q3 with a robust €296.6 million in cash and equivalents, up from €241.9 million at the end of 2023. This cash cushion benefited from €159.1 million in operational inflows, a €9.2 million gain from selling B2B Digital Gaming Corporation assets to Games Global, and a favorable €6.7 million boost from foreign currency fluctuations.
Following its solid Q3 performance, Super Group has revised its financial outlook for 2024. CFO Alinda van Wyk noted, “We are focusing on consistent growth in our key markets,” crediting better operational and marketing efficiencies for delivering a margin of 24%—well above the long-term target of 20%. This momentum, along with a “strong October,” has prompted Super Group to increase its FY2024 adjusted EBITDA guidance (excluding the US) to over €345 million, up from the previous €300 million target.
Return to Shareholders and Focus on Growth Markets
With a cash surplus and robust performances outside the US, Super Group is eyeing a potential special dividend for shareholders by year-end, a move CEO Menashe hinted at as part of their growth strategy. He commented, “There is still tremendous potential as we experience super growth across our global casino brands and particularly in Africa.”
In the months to come, Super Group plans to double down on its strongest markets, with a focus on Africa, Europe, and North America. As the company’s US exit strategy takes full effect, this pivot promises new heights in profitability and market presence.
