Super Group has posted record Q3 revenue of €402.9m (£335.6m), as the Betway parent company championed sustained growth across Africa as a key driver for the business.
Revenue rose 13% year on year (YoY), with adjusted EBITDA jumping 60% to €83.9m. There was an €11.5m loss in the US related to the group’s exit from the online sports betting market stateside.
The sports betting shutdown has been completed, with bosses noting the total cost amounted to around €36m, down on the previous estimate of €45m.
This included redundancy costs, settlement of existing contracts and “a maximum provision for the wind down of the sportsbook product”.
The New York-listed operator will remain in the US with an igaming-only strategy, keeping operations going in both New Jersey and Pennsylvania.
Management said it will use two brands from its Spin portfolio, including Jackpot City, but that an “ongoing assessment” of the market is/was? now in effect.
Super Group still expects to take a negative €20m EBITDA hit on its igaming-only operations during H2 2024.
EBITDA excluding the US was reported as €95m, with a record EBITDA margin of 24%.
Monthly active customers increased by 17% to 4.7 million, up from four million in the corresponding quarter last year, while profit landed at €8.5m.
Geographically, Africa and the Middle East represented the lion’s share of group revenue at 39% (€151.2m), up from €100m in Q3 2023.
According to the presentation deck, the African continent’s 2024 TAM is more than $5bn, with Super Group live in seven regulated markets and dedicating around 1,000 staff to the region.
The business noted it holds podium positions in South Africa, Ghana, Mozambique, Malawi and Zambia and that it maintains a “significant early mover advantage”.
The Americas, driven by Canada, accounted for 36% of revenue with €150.6m, while Europe revenue increased from €54m to €67.4m.
By vertical, sports betting revenue, excluding the US, increased 4% to €67m thanks to growth in Africa, the UK and Canada.
Online casino revenue, also excluding the US, jumped 17% to €322m, with Africa, Canada and a host of undisclosed European markets boosting the figure.
Super Group said the exit from India did impact both verticals’ revenue. The Asia-Pacific division’s revenue slipped from €62m to €33.7m YoY.
Full-year 2024 ex-US revenue guidance has been set at €1.55bn, while adjusted EBITDA ex-US guidance has been raised to more than €345m.
Neal Menashe, Super Group CEO, said the results demonstrated the group’s “phenomenal progress” as he hinted at a shareholder dividend on the horizon.
“We achieved our strongest third quarter ever, highlighting the phenomenal progress we are making as a business,” the CEO said.
“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.”
Super Group shares were up almost 7% in pre-market trading on the New York Stock Exchange.
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