Super Group Q2 Results: CEO Happy with Decision to Exit US Market
Betway parent company Super Group’s CEO Neal Menashe said that he is glad the group concluded to shut its operations in the U.S. sports betting market, as the company reported the highest quarterly ex-US adjusted EBITDA.
Super Group Reports Revenue Growth
Super Group has experienced a rather successful period, as highlighted by the results presented in their Q2 earnings report. Group’s revenue rose by 9% to €414.7 million or 11% to €422.5 million on a constant currency basis, from €380.8 million in the same period last year.
Adjusted EBITDA increased by 8% to €81.9 million from €75.9 million in Q2 2023. The growth was driven by strong performance in Africa and North America, particularly Canada, partially offset by declines in the Middle East and Asia-Pacific markets.
“The second quarter of 2024 was our strongest quarter ever and demonstrates the exceptional progress we continue to make as a business,” said CEO Neal Menashe.
However, the period saw a loss of €0.8 million, including non-cash charges of €36.8 million related to the impairment of DGC assets.
In contrast, Q2 2023 reported a profit of €27.6 million, which included a non-cash charge of €6.1 million related to the change in fair value of option liability.
Super Group also reported a 21% increase in monthly active customers, rising to 4.5 million from 3.7 million in the previous year.
“Given the strength we have seen in the first half of the year, we are confident in raising our ex-US Adjusted EBITDA guidance for the full year 2024 to greater than €300m. Finally, our debt-free balance sheet continues to show strength, and we were pleased to return capital to shareholders through the announcement of our first ever dividend,” stated Super Group’s CFO Alinda van Wyk.
Focus on Key Markets
Last month Super Group announced ceasing sportsbook operations across nine states, including Arizona, Colorado, Indiana, Iowa, New Jersey, Louisiana, Ohio, Pennsylvania, and Virginia. The decision was driven by the lack of a “long-term path to profitability”
Neal Menashe praised that decision stating “I’m glad we have reached a conclusion in shutting the US sports betting market and we continue more generally to optimize our global footprint both in terms of geography and product.”
Menashe also highlighted the company’s focus on the European and African markets: “I’m really excited to welcome English Premier League champions, Manchester City, and South Africa’s Premier Soccer League, now known as the Betway Premiership, to our brand sponsorship portfolio.”
The company’s efforts to expand its global footprint are reflected in the numbers. In Q2 2024, the Africa and Middle East region accounted for 62% of Betway’s revenues, with Europe contributing 18% and North America 16%.
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