Super Group sees Africa emerge as biggest revenue contributor in Q3 as it navigates Betway’s US exit

Betway owner Super Group posted a 20.3% drop in profit over Q3, despite the company reporting revenue of €402.9 million, its highest ever total for the period. Its revenue mix is evolving, with Africa now its largest region in terms of revenue.

In the three-month period to 30 September, Super Group accumulated profit of €8.5 million (£7.1 million/$9.1 million), falling short of the €10.6 million it generated in the same quarter of 2023.

Super Group attributed the decrease to an €11.5 million adjusted EBITDA loss from the US. In July, Super Group announced it had decided to withdraw from the US sports betting market after an extensive internal review, closing its sportsbook operations in the nine states it was live in with the company failing to see a long-term path to profitability.

Excluding the US, Super Group posted an adjusted EBITDA of €95.3 million, meaning the group’s total adjusted EBITDA for Q3 stood at €83.9 million, 59.8% ahead of the €52.5 million generated in Q3 2023 as well as narrowly higher than the €81.9 million seen in Q2.

Global focus drives topline growth for Super Group in Q3

Despite the US losses and drop in profits, Super Group’s growth in Europe and Africa, as well as success with Canada in North America, drove the company to a 13% year-on-year increase in Q3 revenue, also offsetting declines in the Middle East and Asia-Pacific markets.

Super Group’s global focus contributed to its best Q3 revenue performance to date says CEO Neal Menashe

However, revenue was narrowly behind the €414.7 million reported in Q2, which Super Group described as its “strongest quarter ever”.

CEO Neal Menashe believes Super Group is set up for future success, revealing the company is exploring ways to return excess cash to shareholders through a special dividend before the end of 2024.

“We achieved our strongest third quarter ever, highlighting the phenomenal progress we are making as a business,” Menashe 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.”

Africa leading the way for Super Group in Q3

Betway’s total revenue for Q3 was €239.4 million, 2.8% behind the €246.2 million reported in Q2. A vast majority (63%) of that revenue came from its Africa and Middle East activities, followed by Europe with 20%. North America, meanwhile, accounted for 14%, while Asia-Pacific (2%) and LatAm (1%) also chipped in.

Spin, Super Group’s igaming business, posted total revenue of €163.5 million, again marginally short of Q2’s figure of €168.5 million.

Over a third (68%) of Spin’s revenue came from North America, while Asia-Pacific was responsible for 17%. In fact, Spin’s activities in North America were Super Group’s highest revenue generator across its businesses and regions with €100.4 million.

Across both Spin and Betway, Africa was responsible for €151.2 million in revenue, 38% of the €402.9 million total. North America followed closely behind with €114.8 million, 36% of the company’s entire Q3 revenue. Europe, meanwhile, accounted for 17% with €67.4 million.

Super Group ups FY24 EBITDA forecast

Across the first three quarters of this year, Super Group has generated a profit of €48.5 million, 33.8% ahead of the €36.3 million it had accumulated at the same point of 2023.

Additionally, the company’s adjusted EBITDA for the nine months ending 30 September was €212.2 million, again 28.8% higher than the €164.7 million made across the nine months prior to the end of Q3 2023.

It means Super Group ended Q3 with €296.6 million in cash and cash equivalents, which stood at €241.9 million as of the end of 2023.

Super Group attributed that rise to inflows from operating activities of €159.1 million, as well as €9.2 million from the sale of its B2B Digital Gaming Corporation assets to Games Global in February. The operator also benefitted from a €6.7 million gain stemming from foreign currency fluctuations on foreign cash balances over that period.

Super Group’s total monthly active customers was 4.7 million, a 17% increase on Q3 2023 and ahead of the 4.5 million seen in Q2 of this year.

The growth in customer base, as well improved efficiency in the business, has led to Super Group raising its ex-US adjusted EBITDA guidance for FY2024, which previously sat at €300 million.

“We are focusing on consistent growth in our key markets, while striving to maximise 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%,” explained Super Group chief financial officer Alinda van Wyk.

“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.”