Super Group Posts Stable Q1 2023 Results, Praises Growth Investment

Super Group has published its Q1 2023 results, providing insights into its performance during the first three months of the year. The gaming and betting group, which operates the famous Betway brand, saw its revenue remain stable while losses plummeted.

Super Group reported revenue of $364.2 million (converted to USD, current rates). This represents a modest 1% year-on-year increase driven by the growth in the EMEA region. However, revenue declines in the Asia-Pacific region and Ontario prevented the company from experiencing a sharp revenue increase.

Loss after tax was $2.04 million in Q1 2023, which, according to Super Group, “included a non-cash charge of $2.37 million related to the increase in fair value of a liability for a call option granted to a third-party to purchase the B2B division of Digital Gaming Corporation.” For reference, Super Group acquired said division in January 2023.

Super Group noted that the loss after tax of $175.59 million recorded in Q1 2022 included costs associated with Super Group’s partnerships and its 2022 public listing.

Super Group’s operational EBITDA in Q1 2023 was $37.33 million, representing a sharp decline from Q1 2022. The company attributed the decline to a $17.86 million loss in the US.

The gambling giant shared that its monthly active customers in Q1 2023 were 3.5 million, representing a 34% YOY increase.

The company concluded the quarter with $265 million in cash and cash equivalents, which translates to a slight 3.3% YOY decline. Super Group attributed the reduction to various factors, including a loss of $6.56 million because of currency fluctuations.

Super Group’s Leadership Is Satisfied with the Results

Super Group’s chief executive officer, Neal Menashe, commented on the results. He praised his team for delivering “another solid quarter” and added that the company will continue to drive revenue and profit growth.

Menashe noted that March saw Super Group record record-breaking monthly net gaming revenue with an operational EBITDA margin of over 20%. According to him, this is a “strong reminder” of the group’s operating leverage.

We are confident that we will continue to build on another strong quarter across iGaming and sports betting across the world.

Neal Menashe, CEO, Super Group

Meanwhile, Alinda van Wyk, Super Group’s chief financial officer, said that the results highlight the upsides of continued investment in growth.

Our balance sheet remains robust and gives us a very strong foundation to continue to scale our business. We are always optimizing our cost efficiencies, further enhancing future profitability.

Alinda van Wyk, CFO, Super Group

At the beginning of 2023, Super Group finalized the acquisition of the iGaming and online sports betting company DGC.

In other news, a Super Group shareholder just sued Sports Entertainment Acquisition Corp, which allegedly withheld information about its merger with Super Group.