Super Group Gears Up for Landmark Acquisition amidst Q1 Success

Super Group, the parent company of Betway and Spin, has reported its highest first-quarter revenue for the beginning of 2024, signaling a robust year start. Super Group management was optimistic regarding the company’s prospects, expressing confidence in the long-term benefits of ongoing investments, which should help maintain stellar performance in core markets.

Most Metrics Enjoyed Substantial Growth

According to Super Group’s Q1 results, the company experienced a 12% year-over-year increase in revenue to €379.3 million ($407.68 million), with revenue rising by 17% in constant currency to €389.3 million ($418.42 million). Robust performances in Africa and North America were significant revenue drivers, although declines in the Middle East and Asia-Pacific markets partially offset this stellar growth.

Regionally, North America, Africa, and the Middle East accounted for 37% of the total revenue share during Q1, followed by Europe at 15%, Asia-Pacific at 9%, and South/Latin America at 2%. Betway reported €222 million ($238.60 million) in revenue during the quarter, while Spin contributed €157.3 million ($169.06 million). Online casino revenue was the highest vertical, at €292.2 million ($314.05 million), followed by sports betting revenue at €76.9 million ($82.65 million).

“We achieved record results for a first quarter… Our laser focus on creating a leaner, more efficient operating model has delivered results.”

Alinda van Wyk, Super Group CFO

The company reported a Q1 profit of €41 million ($44.07 million), significantly improving on the €1.9 million ($2.04 million) loss in the previous year. Adjusted EBITDA also saw a 29% year-over-year improvement to €46.5 million ($49.98 million), growing 18%. Despite the positive results, US operations are still under review, with the region reporting an adjusted EBITDA loss of €22 million ($23.65 million) for Q1.

Sustainability and Efficiency Remain a Primary Focus

Looking ahead, Super Group has entered into a definitive agreement to acquire complete control of sportsbook software technology licensed by its software partner, Apricot. The technology acquisition is valued at approximately €140 million ($150.48 million) and should further bolster Super Group’s market position, enhancing competitiveness and making the company more resistant to industry pressures.

The deal with Apricot also contains provisions for additional payments of up to €210 million ($225.71 million) via an earn-out mechanism, contingent upon sportsbook revenue more than doubling during the earn-out period, spanning until 31 December 2035. This addition should encourage Apricot to integrate its business and work with Super Group to stay ahead of the competition.

“Investment into high-growth areas of the business continues at pace, and we remain confident that we are in a strong position to realize our goals set for 2024.”

Alinda van Wyk, Super Group CFO

Super Group has reiterated its focus on creating a leaner, more efficient operating model that can swiftly adapt to shifting industry dynamics and take advantage of emerging trends. The company’s stellar Q1 performance sets a robust foundation for future growth, ensuring Super Group remains at the forefront of innovation and retains its impressive momentum.