Super Group Reports Strong Second-Quarter Results
The enormous company expressed gratitude for the expansion of its client base during the second quarter.
The company’s second-quarter income reached €380.8 million (£324.6 million/$413.9 million), a rise of 18.7% compared to the same period last year, exceeding the level of the second quarter of 2022.
Excluding the U.S. operations, income for the quarter reached €374 million, a rise of 16.0%, establishing a new record for the company.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) reached €70 million, a rise of 32.6% year-over-year. Excluding the U.S. operations, this figure reached €82.6 million, a rise of 54.2%.
During the company’s second-quarter earnings call, the company’s CFO Alinda van Wyk highlighted several new quarterly records achieved by the company, including a new monthly record of 3.9 million active clients in April.
She stated, “We set several new records, including the highest total EBITDA revenue for the quarter.” “We have more clients than ever before, which will be a key driver of future business growth.”
The company’s CEO Neal Menashe stated the company has been steadily growing, particularly in terms of its client base.
He stated, “We have experienced continued growth in our client base, with strong momentum continuing from the first quarter.” “April was exceptional, setting a new monthly record of 3.9 million active clients.”
“This quarter, we achieved a new record of 3.7 million average monthly active clients, compared to 2 million in the second quarter of 2022.”
In the last twelve months, income has risen by 40% to €7 million.
Menashe also highlighted that ongoing investments in acquiring new clients are a key strength.
Betway’s operations in Africa and the Middle East propelled overall income growth.
Looking at Super Group’s two divisions, Betway and Spin, Betway contributed €228.9 million to total revenue. This represents a 28.1% increase from the same period last year. Spin accounted for the remaining €151.8 million, a 6.8% increase.
Geographically, the majority of income – €110.3 million – originated from operations in Africa and the Middle East. Of this, Betway contributed €110 million. In the report, Super Group noted that growth in Africa and the Middle East drove overall income growth.
Menashe asserted that Africa continued to perform well in the quarter, despite some unfavorable currency fluctuations.
Super Group’s North American business was the second-largest source of revenue, generating €137.1 million.
Net profit for the second quarter decreased by €271 million year-on-year.
Direct and marketing expenditures for the quarter totaled €277.3 million, a 22.8% increase year-on-year. General and administrative expenses were €37.8 million, and depreciation and amortization expenses were €20.3 million.
After taking into account other operating income of €1 million, operating profit for the quarter was €46.3 million, a 3.2% increase.
Other costs, including finance costs and fair value changes in options, totaled €6.6 million. This was partially offset by €2 million in financial income, resulting in a pre-tax profit of €41.7 million.
The second quarter of 2022 saw Super Group achieve a commendable performance, generating a pre-tax profit of €304.1 million. While this figure fell slightly short of the corresponding period in the previous year, it still represents a positive outcome. After accounting for €14.2 million in taxes, the company recorded a net profit of €27.5 million.
North America played a significant role in Super Group’s business during the first six months of the year. The region contributed €267.3 million in revenue, while Africa and the Middle East generated €198.2 million.
Super Group’s first half of the year was marked by robust growth, with revenue increasing by 9.7% compared to the same period in the previous year. The company is also making strides in the US market, having acquired Digital Gaming Corporation in January.
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