Super Group: Q3 2022 Results in Line with Full-Year Guidance

Super Group Limited (SGHC), the operating subsidiary of Super Group’s online gaming brands Betway and Spin, released its report for the third quarter of 2022, posting a 2% decrease in revenue and more than a 30% decrease in profit year-over-year.

Revenue Took a Slight Hit But Remained Robust

For the three months ended September 30, 2022, SGHC posted revenue of €307.8 million ($316.3 million) and registered a slight decrease from €312.6 million ($321.2 million) for the respective three-month period in 2021.

The company attributed the result to the decline in its online casino net revenue and brand license fee income, which were partially offset by an increase in revenue from sports betting. The decline marked the second consecutive quarter with a decrease year-over-year, following the 10% drop registered in the second quarter.

Quarter-over-quarter, Q3 2022 registered a decrease of 4% from €320.8 million ($329.6 million) in Q2 2022, which together with the result in Q1 2022 accounted for €963.1 million ($989.6 million) for the nine months ended September 30, 2022.

Considering the trading update issued by the company earlier this month in which it maintained its full year’s 2022 revenue guidance of between €1.15 billion ($1.18 billion) and €1.28 billion ($1.32 billion), a Q4 2022 revenue of €186.9 million ($192 million) would do the job, while a revenue exceeding €316.9 million ($325.6 million) will mark an improvement on the guidance.

Profit, EBITDA, Adjusted EBITDA, Cash Balance

Q3 2022 resulted in €34.9 million ($35.9 million) in profit after tax to register a 30.9% drop from €50.5 million ($51.9 million) posted in the respective quarter of 2021. On a sequential basis, the result means a massive 88% drop from €298.6 million ($306.8 million) in Q2 2022 but the second-quarter result was positively impacted by €283.3 million ($291.1 million) of non-cash fair value gains.

Year-over-year, the decreases in EBITDA at €60.9 million ($62.6 million) and adjusted EBITDA at €56.1 million ($57.6 million) were 19.8% and 26%, respectively. Adjusted EBITDA for the first nine months of 2022 was €181.2 million ($186.2 million), leaving SGHC within reach of its full-year guidance of between €200 million ($205.5 million) and €215 million ($220.9 million).

The business saw the monthly average customer number increase to 2.7 million in the quarter, up 7% from 2.5 million in Q3 2021. The number excluded customers of Jumpman Gaming – the company SGHC acquired a majority ownership interest in September.

SGHC had cash and cash equivalents of €266 million ($273.3 million) at the end of the quarter, up from €220 million ($226 million) in Q2 but posting a decrease of 9.5% from €293.8 million ($301.9 million) as of December 31, 2021.