by Adam Dworak

Super Group Surpasses Revenue Expectations with a Record €1.4 Billion in 2023

Super Group (SGHC) Limited, the powerhouse behind the acclaimed online sports betting brand Betway and the multi-brand online casino Spin, has proudly announced an unprecedented financial performance for the fiscal year of 2023.

The company not only exceeded its revenue forecasts but also set a new all-time high with a staggering €1.4 billion in annual revenue. This achievement underscores Super Group’s dominant position in the iGaming and online sports betting sectors, highlighting its resilience and strategic prowess in navigating the dynamic market landscapes.

Q4 Highlights: A Quarter of Records

The final quarter of 2023 was particularly noteworthy for Super Group, as it reported the highest quarterly revenue in the company’s history at €359.9 million. However, it was not without its challenges, as the company faced a loss before tax of €44.9 million during the same period. These figures were significantly influenced by non-cash charges related to the fair value adjustments of option liabilities and an impairment of goodwill. Despite these setbacks, the operational EBITDA ex-US stood at a robust €54.0 million for the quarter, showcasing the company’s operational efficiency and cost management.

Full-Year Financials: Sturdy Growth Amidst Volatility

For the full year, Super Group’s revenue saw an 11% increase from the previous year, reaching an impressive €1.4 billion. This growth was partly attributed to constant currency adjustments, which painted an even more favorable picture at a 19% increase to €1.5 billion. The profit before tax for the year was reported at €16.8 million, a figure impacted by various non-cash charges, including adjustments related to the acquisition of Digital Gaming Corporation Limited (DGC) in January 2023.

Operational EBITDA for 2023 was a commendable €197.3 million, with the ex-US segment contributing a significant €254.7 million, surpassing the company’s initial guidance. This performance underscores Super Group’s effective cost control measures and its ability to capitalize on growth opportunities. Furthermore, the company’s customer base saw a remarkable 43% increase, with monthly average customers rising to 4.0 million in 2023 from 2.8 million in the previous year.

Executive Insights

Neal Menashe, CEO of Super Group, expressed his satisfaction with the company’s performance, stating, “We have made tremendous strides in 2023 and are delighted to have achieved an all-time revenue record of €1.4 billion, enabling us to comfortably surpass our guidance for the year. Q4 2023 was particularly strong. Despite the challenging start, we set record breaking totals for revenue, customer numbers and deposits cementing our position as a growing, cash generative and geographically diverse online sports betting and iGaming operator. iGaming continues to be the largest part of our business, allowing us to manage moments of volatility in the sportsbook to deliver record-breaking results. We are confident that we will achieve the double-digit top-line growth that we are projecting for 2024.”

Alinda van Wyk, CFO of Super Group, also reflected on the company’s achievements, particularly noting the strong performance in the ex-US markets. “For the fourth quarter, we delivered ex-US Revenue of €352 million and ex-US Operational EBITDA of €54 million, which resulted in our December margin hitting 24%, the strongest ever. To have surpassed our guidance, in the face of multiple headwinds, is indicative of our laser focus on realizing cost efficiencies and investing in growth where we can see a clear return. In the US, the operational EBITDA loss was less than expected for the year and we are actively evaluating all of our options.”

Our Comment on the Article

Super Group’s record-breaking performance in 2023 is a testament to the company’s strategic agility and its ability to navigate the complex and ever-changing landscape of the iGaming and online sports betting industry. Despite facing significant non-cash charges and other financial headwinds, the company not only exceeded its revenue guidance but also reinforced its position as a leading, growth-oriented operator in the global market. As Super Group continues to expand its geographical footprint and enhance its product offerings, it is well-positioned to maintain its growth trajectory and deliver value to its stakeholders in the coming years.

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