Super Group maintains 2022 targets despite Q3 slowdown

Super Group maintains 2022 targets despite Q3 slowdown

 Super Group Inc (SGHC) continues to navigate against macro headwinds impacting the performance of its flagship Betway and Spin brands across global jurisdictions.

Publishing its Q3 trading update, the NYSE online gambling group registered corporate revenues of €308m, down 2% on 2021 comparative results of €312m.

The decline in headline revenues was primarily attributed to the slowdown of the Spin online casino brand failing to match its like-for-like revenue performance in North American markets.

Meanwhile, the Betway brand saw a 4% uptick in revenues to €168m, despite generating lower than anticipated fees from brand licences totalling €5.5m (Q3 2021: €16.6m).

Period trading saw SGHC’s Africa and Middle East unit continue to register growth of €70m (+11%) but corporate performance was stunted in the markets of Asia (-9%) and North America (-6%).

Positive KPIs saw monthly average customers increase by 7% to 2.7 million, up from 2.5 million registered in 2021 – results excluding customers of Jumpman Gaming, a new asset acquired on September 1, 2022.

Q3 adjusted EBITDA stood at €56m, down 25% on Q3 2021 earnings of €77m as SGHC accounts carry a fair value option of €22m allocated as a reward for Verno Holdings, the holding company of Jumpman Gaming.

Group profits after tax stood at €34.8m (Q3 2021: €50m ), in which SGHC accounted for a doubling in tax income to €10.6m.

CEO Neal Menashe commented: “Super Group’s online-only business model and ongoing focus on improved customer experience through enhanced global technology platforms continues to ensure optimal customer engagement and value.

“Together with effective investment in our brands and efficient allocation of our capital, this provides us with a sound path for long-term growth.”

SGHC leadership cited confidence in delivering its revenue target range of €1.15bn and €1.28bn, as year-to-date revenues stand at €963m.

The group’s YTD adjusted EBITDA is tracking at €181m, on target to achieve its full-year EBITDA range of €200m-to-€215m.

Signing-off accounts. CFO Alinda van Wyk stated: “Super Group remains financially strong and we continue to optimize our global footprint and operate more efficiently to leverage our scale.

“We remain focused on investing into technology and marketing, as well as other opportunities that will provide us with long-term growth and profitability.”

Source: SBC News