Super Group posts record Q1 revenue, driven by Africa and North America growth

Betway operator Super Group revealed its financial results for the first quarter of 2024, announcing its highest-ever Q1 revenue of €379.3 million ($407.6 million) and a significant step towards fully acquiring its sportsbook technology platform.

The Q1 revenue marked a 5.4% increase from the previous quarter's €359.9 million and a 12.1% rise from €338.5 million in the same period in 2023. Super Group credited this growth to expanding operations in Africa and North America, with revenue surging 58.9% and 8.2%, respectively. However, decreases were noted in the Middle East and Asia-Pacific markets.

Super Group announced a Q1 profit of €41 million ($44.3 million), inclusive of a pre-tax gain of €40.1 million from the sale of Digital Gaming Corporation's B2B division. Adjusted EBITDA for Q1 reached €46.5 million, marking a 28.8% increase from the same period last year and a 38.4% surge from Q4 2023.

Neal Menashe, Super Group's CEO, expressed satisfaction with the company's performance, highlighting the operator's strategic priorities. 

“This robust performance has been delivered by our global team’s ongoing focus and investment into core markets that are yielding strong returns, providing us with a solid foundation for the remainder of the year,” Menashe said.

In a significant move, Super Group also unveiled plans to fully acquire its sportsbook software technology, currently licensed by Apricot. The deal, valued at €140 million ($151 million), includes additional payments of up to €210 million based on future sportsbook revenue milestones. Super Group will pay an initial €100 million through the cancellation of an outstanding loan, with the remaining €40 million distributed over the next two years.

Menashe emphasized the strategic importance of the acquisition: “This is an exceptional opportunity for Super Group to take full control of our sportsbook technology, which would enable maximum flexibility for organic growth as well as M&A opportunities."

The deal is subject to regulatory approvals and is expected to be completed within six to 12 months.

Betway, under Super Group's umbrella, reported a Q1 revenue of €222 million ($239.5 million), driven by a robust performance in its online casino segment, which offset declines in sports betting and brand licensing revenue.

Looking ahead, Super Group remains optimistic, aiming for double-digit top-line growth in 2024 and anticipating a total revenue increase of 10% to €1.6 billion, excluding the US market.

Chief Financial Officer Alinda van Wyk underscored the company's focus on efficiency and investment in high-growth areas, expressing confidence in achieving its 2024 goals. "Our laser focus on creating a leaner, more efficient operating model has delivered results, with Q1 operating expenses as a percentage of net revenue falling to below 19%," Wyk said.