15.03.2023

by Kamil Pyziak

Super Group reports slight decrease in revenue in 2022

Super Group, Betway’s parent company, is expected to have revenues of €1.29 billion (£1.13 billion/$1.38 billion) in 2022. The group reported decreases in several sectors of its activity.

Decrease in revenue of Super Group

Super Group revenue decreased by 2.1% year-on-year. Revenue of on line casinos increased 5.4% year-on-year to €269.3 million. Revenue of sports betting amounted to €439 million, up 12.2% year-on-year. The remaining revenue amounted to €41 million – it is a decrease by 42.2% year-on-year.

Direct expenses cost Super Group 473 million euros, up slightly from 455 million euros in 2021. Marketing costs, meanwhile, declined slightly, at 344 million euros (351 million euros in 2021). General and administrative expenses also increased, amounting to 270 million euros.

Gross income for 2022 was €233.7 million, an increase of 3.4%. After financial income of €2.2 million, financial expenses of €920,000 and depreciation and amortization expenses of €65.7 million, earnings before interest, taxes, depreciation and amortization (EBITDA) reached €298.1 million, down 5.2%.

The quarter ended on December 31, 2022, generated revenue of €329 million for the group, down 3.5% from the fourth quarter of 2021.

Most of the revenue (€209 million), was generated by on line casino activity. Sports betting generated €113 million in revenue, while €7 million came from other income.

Direct expenses for the quarter amounted to €120 million, an increase of €2 million compared to the fourth quarter of 2021. Marketing costs also remained relatively stable, rising by €1 million to €95 million. General and administrative expenses, meanwhile, reached €72 million, a significant increase of 24.1%.

Profit before taxes totaled 38.2 million euros in the fourth quarter, down 38.8% year-on-year. Financial income of €1 million, financial expenses of €86,000 and amortization expenses of €18.8 million generated EBITDA of €56.1 million, down 32.5%.

Focus on the American market

The group has made a number of strategic moves over the past months. A $4.75 billion merger with SEAC was completed in January 2022. In June, meanwhile, four of Super Group’s brands – including major gaming brand Spin – received approval to launch in Ontario.

In early January of this year, Super Group received approval to begin operations in the U.S. after acquiring Betway’s local operations. Neal Menashe, CEO of Super Group, said the company is determined to expand its global reach – especially in the U.S.

“Super Group is a leading global pure-play sports betting and on line casino company seeking to continually optimise and grow our global footprint, including in the US”, Menashe said.

“We continue to efficiently invest in our brand, enhance our technology platform and benefit from our consistent cash generation. “We feel we are well positioned to apply our well tested strategies to the US markets and capitalise on what we see as a multi-year investment opportunity – he added.

Alinda van Wyk, Super Group’s CFO, acknowledged that future investments will focus on the areas of technology and marketing: Super Group remains financially strong, and we continue to run our business profitably while investing in technology and marketing to support future growth” van Wyk said. “We remain focused on operating more efficiently in 2023 in order to improve scale and our operating margins going forward.”, she added.

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