Super Group, the parent company of Betway and Spin, has released its first quarterly results as a U.S. public company, reporting revenue growth of 7% to €334.5 million (USD 357.6M) for the first quarter of 2022, driven by growth in African and Asia-Pacific markets. This was partially offset by adverse impacts from tightening regulation, and in some cases, ceasing in some European markets, according to the firm, which added that revenue was also impacted by continued shutdowns from the COVID pandemic in many markets which resulted in increased gaming activity.
Loss after tax for the first quarter of 2022 was €163.2 million (USD 174.6 million) compared to a profit of €38.6 million in the same period of the prior year. This result was affected by costs and adjustments related to the business combination with Sports Entertainment Acquisition Corporation (SEAH), a publicly-traded special purpose acquisition company (SPAC), and the following listing on the New York Stock Exchange on January 28.
Neal Menashe, CEO of Super Group, commented in a release issued May 25: “During the first quarter of 2022, Super Group began operating as a U.S. publicly listed company and continued to expand in both existing and new markets in line with our growth strategy. Our team has become accustomed to navigating the business through changing and challenging environments, and we believe the strategies that we are executing on will enable us to continue doing so as we take Super Group from strength to strength.”
“The results for the first quarter of 2022 reflected revenue growth and strong cash generation but were challenged on a period over period comparative basis due to industry and economic headwinds and costs related to our business combination and listing as a public company in January," stated Alinda van Wyk, CFO of Super Group. “Despite tough period over period comparisons, Super Group experienced revenue growth and a period over period 39% increase in cash and cash equivalents.”
EBITDA, a non-GAAP measure, decreased to a loss of €138.2 million (USD 147.9M) in the first quarter of 2022 compared to earnings of €64.1 million in the same period from the prior year. Adjusted EBITDA, which excludes transaction costs, share listing expense, changes in valuations of warrants and earn-out liabilities, gains on derivative contracts and bargain purchases, increased 14% to €61.5 million compared to €54.0 million in the same period from the prior year.
Monthly Average Customers for the quarter increased 10% to 2.6 million despite closure and restrictions in certain European countries and the first quarter of 2021 benefiting from a resurgence of the COVID pandemic.
During the first quarter, Super Group increased its regulated market presence through the launch of both a sports betting and casino offering in Bulgaria. Also, nine new partnerships were signed during the period, including the Milwaukee Bucks, the Stock Car Pro Series Brazil and the Ghana Women’s Football League. As of March 31, Super Group had over 70 brand partnerships in over 20 jurisdictions.
In Ontario, registration has been awarded for the Betway brand, and SGHC anticipates imminent registration for the Spin brands. Currently, Betway and Spin continue to operate in Ontario with the knowledge of the regulator.
Earlier this month, Super Group appointed Natara Holloway and Jonathan Jossel, Chief Executive Officer of Plaza Hotel & Casino, to its Board of Directors.