In an impressive demonstration of resilience and adaptability, Super Group, the parent company of Betway, has reported a remarkable but complex third quarter (Q3) in 2024.
The gaming and sports betting operator announced that while it witnessed a 20.3% year-on-year decline in profits, it also achieved its highest-ever quarterly revenue, totaling €402.9 million. This period has marked a significant shift in Super Group’s revenue dynamics, with Africa now emerging as its largest market.
The Financial Landscape of Q3
For the quarter ending on September 30, Super Group recorded a profit of €8.5 million (£7.1 million/$9.1 million), a decrease from the €10.6 million profit reported during the same period in 2023. This decline in profitability was largely attributed to a significant adjusted EBITDA loss of €11.5 million from the company’s operations in the United States. After a thorough internal review, Super Group made the strategic decision to withdraw from the US sports betting market, shuttering operations across nine states where it had been active.
Despite these setbacks in the US market, excluding American operations, Super Group’s adjusted EBITDA reached €95.3 million, contributing to a total adjusted EBITDA of €83.9 million for Q3—up a staggering 59.8% compared to €52.5 million in Q3 2023. The company’s revenue also experienced a 13% year-on-year increase, indicating robust growth in key regions, particularly Africa.
Africa: The New Revenue Powerhouse
African operations have proven to be a substantial revenue driver for Super Group, accounting for €151.2 million or 38% of total revenue. This shift marks Africa as the leading revenue region for Super Group for the second consecutive quarter. The Betway brand generated significant income, with a total revenue of €239.4 million in Q3—63% of which came from Africa and the Middle East.
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Super Group’s igaming subsidiary, Spin, also had a noteworthy quarter, generating €163.5 million in revenue, with North America emerging as its biggest contributor. However, revenues from Spin in other regions, particularly Asia-Pacific, displayed potential for future growth.
Strategic Adjustments and Future Outlook
Despite navigating challenges like the US exit, CEO Neal Menashe remains optimistic about Super Group’s trajectory. “We achieved our strongest third quarter ever, highlighting the phenomenal progress we are making as a business,” Menashe stated. This optimism is further reflected in Super Group’s plans to return excess cash to shareholders, potentially through a special dividend by the end of 2024.
Additionally, the company boosted its adjusted EBITDA guidance for fiscal year 2024, now forecasting an ex-US adjusted EBITDA greater than €345 million, significantly up from the original €300 million estimate. This ambitious outlook is bolstered by a substantial rise in the company’s cash reserves, which reached €296.6 million, alongside a 17% increase in total monthly active customers to 4.7 million.
