SGHC Super Group SGHC Limited

• Revenue of €414.7 million for the second quarter of 2024 - an all-time quarterly record
• Loss for the three months ended June 30, 2024 of €0.8 million includes non-cash charges of €36.8 million relating to the impairment of DGC related assets
• Non-GAAP Adjusted EBITDA ex-US of €98.3 million for the three months ended June 30, 2024 is the highest quarterly ex-US adjusted EBITDA to date, offset by a non-GAAP Adjusted EBITDA loss of €16.4 million from the US, resulting in total non-GAAP Adjusted EBITDA of €81.9 million
• Unrestricted cash of €306.8 million at June 30, 2024

Super Group (SGHC) Limited (NYSE: SGHC) (“SGHC” or “Super Group”), the parent company of Betway, a leading online sports betting and gaming business, and Spin, the multi-brand online casino, today announced second quarter 2024 unaudited consolidated financial results.

Neal Menashe, Chief Executive Officer of Super Group, commented: “The second quarter of 2024 was our strongest quarter ever and demonstrates the exceptional progress we continue to make as a business. I'm glad we have reached a conclusion in shutting the US sports betting market and we continue more generally to optimize our global footprint both in terms of geography and product. I'm really excited to welcome English Premier League champions, Manchester City, and South Africa’s Premier Soccer League, now known as the Betway Premiership, to our brand sponsorship portfolio. Our outlook for the remainder of the year is strong, and we look forward to making 2024 a super year for Super Group.”

Alinda van Wyk, Chief Financial Officer of Super Group, stated: "We achieved new quarterly records for the ex-US business for both total revenue of €408 million and Adjusted EBITDA of €98 million. The continued focus of growth in key markets, along with the significant progress made on realizing cost efficiencies, contributed to a strong second quarter ex-US EBITDA margin of 24%. Given the strength we have seen in the first half of the year, we are confident in raising our ex-US Adjusted EBITDA guidance for the full year 2024 to greater than €300m. Finally, our debt-free balance sheet continues to show strength, and we were pleased to return capital to shareholders through the announcement of our first ever dividend."

Financial Highlights:

• Revenue increased by 9% to €414.7 million for the second quarter of 2024 (constant currency: 11% to €422.5 million) from €380.8 million in the same period of the prior year, driven by growth from the Africa and North America (predominantly Canada) markets partially offset by declines from the Middle East and Asia-Pacific markets.

• Loss for the period was €0.8 million for the second quarter of 2024 and includes non-cash charges of €36.8 million relating to the impairment of DGC related assets. Profit for the period of €27.6 million for the second quarter of 2023 included a non-cash charge of €6.1 million related to the change in fair value of option liability.

• Adjusted EBITDA, a non-GAAP measure, increased by 8% to €81.9 million for the second quarter 2024 compared to €75.9 million in the second quarter of 2023.

• Monthly Active Customers increased by 21% to 4.5 million during the second quarter of 2024 from 3.7 million in the second quarter of 2023.

• Cash and cash equivalents was €306.8 million at June 30, 2024, up from €241.9 million at December 31, 2023. This net increase during the six months ended June 30, 2024 was the result of:

• Inflows from operating activities amounting to €104.5 million;

• Outflows from investing activities of €42.9 million. This was mainly as a result of further investment in tangible and intangible assets of €44.8 million, predominantly due to the capitalization of expenditure on software, issuance of a loan to Apricot Investments Limited of €10.0 million, deferred consideration paid of €2.1 million relating to the 15 Marketing Limited acquisition and cash paid of €2.0 million for an investment in associate. These outflows were offset in part by €9.2 million of consideration received from the sale of the B2B division of DGC, as well as €6.3 million resulting from receipts of interest and repayment of loans receivable;

• Outflows from financing activities of €3.7 million, mainly due to lease payments; and

• A gain of €7.0 million as a result of foreign currency fluctuations on foreign cash balances held over this period.

Revenue by Geographical Region for the Three Months Ended June 30, 2024 in € ‘000s:

 

Betway

Spin

Total

Africa and Middle East

152,767

876

153,643

Asia-Pacific

6,740

30,278

37,018

Europe

44,914

20,629

65,543

North America

38,314

111,775

150,089

South/Latin America

3,515

4,938

8,453

Total revenue

246,250

168,496

414,746

 

%

%

%

Africa and Middle East

62 %

1 %

37 %

Asia-Pacific

3 %

18 %

9 %

Europe

18 %

12 %

16 %

North America

16 %

66 %

36 %

South/Latin America

1 %

3 %

2 %

Revenue by Geographical Region for the Three Months Ended June 30, 2023 in € ‘000s:

 

Betway

Spin

Total

Africa and Middle East

110,029

298

110,327

Asia-Pacific

41,142

27,973

69,115

Europe

36,519

20,608

57,127

North America

37,590

99,514

137,104

South/Latin America

3,657

3,459

7,116

Total revenue

228,937

151,852

380,789

 

%

%

%

Africa and Middle East

48 %

0 %

29 %

Asia-Pacific

18 %

18 %

18 %

Europe

16 %

14 %

15 %

North America

16 %

66 %

36 %

South/Latin America

2 %

2 %

2 %

Revenue by Geographical Region for the Six Months Ended June 30, 2024 in € ‘000s:

 

Betway

Spin

Total

Africa and Middle East

292,030

1,283

293,313

Asia-Pacific

14,666

57,393

72,059

Europe

83,919

39,249

123,168

North America

70,612

220,372

290,984

South/Latin America

6,988

7,485

14,473

Total revenue

468,215

325,782

793,997

 

%

%

%

Africa and Middle East

63 %

0 %

36 %

Asia-Pacific

3 %

18 %

9 %

Europe

18 %

12 %

16 %

North America

15 %

68 %

37 %

South/Latin America

1 %

2 %

2 %

Revenue by Geographical Region for the Six Months Ended June 30, 2023 in € ‘000s:

 

Betway

Spin

Total

Africa and Middle East

197,453

752

198,205

Asia-Pacific

76,190

50,922

127,112

Europe

71,008

41,946

112,954

North America

75,245

192,065

267,310

South/Latin America

7,333

6,396

13,729

Total revenue

427,229

292,081

719,310

 

%

%

%

Africa and Middle East

46 %

0 %

28 %

Asia-Pacific

17 %

18 %

17 %

Europe

17 %

14 %

16 %

North America

18 %

66 %

37 %

South/Latin America

2 %

2 %

2 %

Revenue by product line for the Three Months Ended June 30, 2024 in € ‘000s:

 

Betway

Spin

Total

Online casino1

154,903

168,252

323,155

Sports betting1

84,319

—

84,319

Brand licensing2

5,263

—

5,263

Other3

1,765

244

2,009

Total revenue

246,250

168,496

414,746

Revenue by product line for the Three Months Ended June 30, 2023 in € ‘000s:

 

Betway

Spin

Total

Online casino1

120,819

151,620

272,439

Sports betting1

94,221

1

94,222

Brand licensing2

8,316

—

8,316

Other3

5,581

231

5,812

Total revenue

228,937

151,852

380,789

 

1 Sports betting and online casino revenues are not within the scope of IFRS 15 ‘Revenue from Contracts with Customers’ and are treated as derivatives under IFRS 9 ‘Financial Instruments’. Fixed Odds Contingencies has been reclassified from sports betting in the prior period to online casino in order to align to the current year classification. Fixed Odds Contingencies are casino style games in respect of which the odds are agreed at the time of the bet and accepted under the sports licenses in certain jurisdictions.

2 Brand licensing revenues are within the scope of IFRS 15 ‘Revenue from Contracts with Customers’.

3 Other relates mainly to DGC usage fee income as well as profit share and outsource fees from external customers.

Revenue by product line for the Six Months Ended June 30, 2024 in € ‘000s:

 

Betway

Spin

Total

Online casino1

294,031

325,103

619,134

Sports betting1

157,349

60

157,409

Brand licensing2

11,128

—

11,128

Other3

5,707

619

6,326

Total revenue

468,215

325,782

793,997

Revenue by product line for the Six Months Ended June 30, 2023 in € ‘000s:

 

Betway

Spin

Total

Online casino1

223,813

291,595

515,408

Sports betting1

175,653

46

175,699

Brand licensing2

17,148

—

17,148

Other3

10,615

440

11,055

Total revenue

427,229

292,081

719,310

 

1 Sports betting and online casino revenues are not within the scope of IFRS 15 ‘Revenue from Contracts with Customers’ and are treated as derivatives under IFRS 9 ‘Financial Instruments’. Fixed Odds Contingencies has been reclassified from sports betting in the prior period to online casino in order to align to the current year classification. Fixed Odds Contingencies are casino style games in respect of which the odds are agreed at the time of the bet and accepted under the sports licenses in certain jurisdictions.

2 Brand licensing revenues are within the scope of IFRS 15 ‘Revenue from Contracts with Customers’.

3 Other relates to profit share, royalties and outsource fees from external customers.

Non-GAAP Financial Information

This press release includes non-GAAP financial information not presented in accordance with the International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board.

EBITDA, Adjusted EBITDA and revenue on a constant currency basis are non-GAAP company-specific performance measures that Super Group uses to supplement the Company’s results presented in accordance with IFRS. EBITDA is defined as profit before depreciation, amortization, finance income, finance expense and income tax expense. Adjusted EBITDA is EBITDA adjusted for RSU expense, change in fair value of options, unrealized foreign exchange, gain on disposal business, impairment of assets and other adjustments. Constant currency revenue growth is calculated by translating non-Euro performance for 2023 and 2024 using 2023 exchange rates.

Super Group believes that these non-GAAP measures are useful in evaluating the Company’s operating performance as they are similar to measures reported by the Company’s public competitors and are regularly used by securities analysts, institutional investors and other interested parties in analyzing operating performance and prospects.

Management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with IFRS. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses that are required by IFRS to be recorded in Super Group’s financial statements. In order to compensate for these limitations, management presents non-GAAP financial measures together with IFRS results. Non-GAAP measures should be considered in addition to results and guidance prepared in accordance with IFRS, but should not be considered a substitute for, or superior to, IFRS results.

Reconciliation tables of the most comparable IFRS financial measure to the non-GAAP financial measures used in this press release, other than revenue on a constant currency basis, and supplemental materials are included below. Super Group urges investors to review the reconciliation and not to rely on any single financial measure to evaluate its business. In addition, other companies, including companies in our industry, may calculate similarly named non-GAAP measures differently than we do, which limits their usefulness in comparing our financial results with theirs.

Reconciliation of (Loss) / Profit after taxation to EBITDA and Adjusted EBITDA

for the Three and Six Months Ended June 30, in € ‘000s:

 

Three Months Ended June 30

Six Months Ended June 30

 

2024

 

2023

 

2024

 

2023

 

(Loss) / Profit for the period

(805

)

27,559

 

40,067

 

25,636

 

Income tax expense

21,355

 

14,203

 

29,099

 

20,640

 

Finance income

(2,534

)

(2,070

)

(5,672

)

(3,266

)

Finance expense

1,364

 

537

 

2,671

 

1,084

 

Depreciation and amortization expense

21,823

 

20,311

 

41,725

 

41,755

 

EBITDA

41,203

 

60,540

 

107,890

 

85,849

 

Change in fair value of options

(268

)

6,087

 

12,838

 

8,278

 

RSU expense1

3,432

 

3,262

 

7,150

 

7,402

 

Unrealized foreign exchange1

1,619

 

783

 

4,745

 

3,894

 

Gain on disposal of business

—

 

—

 

(40,135

)

—

 

Impairment of assets

36,775

 

—

 

—

 

—

 

Other adjustments1,2

(848

)

5,195

 

(983

)

6,495

 

Adjusted EBITDA

81,913

 

75,867

 

91,505

 

111,918

 

 

 

 

 

 

Adjusted EBITDA, ex-US

98,286

 

88,365

 

166,942

 

140,891

 

Adjusted EBITDA, US

(16,373

)

(12,498

)

(38,662

)

(28,973

)

 

1 Adjusted EBITDA has been restated for the prior period presented to include unrealized foreign exchange movements, additional RSU expenses and other adjustments.

2 Other adjustments in 2023 includes non-recurring bad debt and SOX implementation fees relating to new acquisitions.

Webcast Details

The Company will host a webcast at 8:30 a.m. ET today to discuss the second quarter 2024 financial results. Participants may access the live webcast and supplemental earnings presentation on the events & presentations page of the Super Group Investor Relations website at: https://investors.sghc.com/events-and-presentations/default.aspx.

About Super Group (SGHC) Limited

Super Group (SGHC) Limited is the holding company for leading global online sports betting and gaming businesses: Betway, a premier online sports betting brand, and Spin, a multi-brand online casino offering. The group is licensed in multiple jurisdictions, with leading positions in key markets throughout Europe, the Americas and Africa. The group’s sports betting and online gaming offerings are underpinned by its scale and leading technology, enabling fast and effective entry into new markets. Its proprietary marketing and data analytics engine empowers it to responsibly provide a unique and personalized customer experience. Super Group has been ranked no.6 in the EGR Power 50 for the last two years. For more information, visit www.sghc.com.

Source: Super Group

Forward-Looking Statements

Certain statements made in this press release are “forward looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995.

These forward-looking statements include, but are not limited to, expectations and projections of market opportunity, growth and profitability, expansion into new markets and expectations for the remainder of 2024, including ex-US Adjusted EBITDA guidance for 2024.

These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “pipeline,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: (i) the ability to implement business plans, forecasts and other expectations, and identify and realize additional opportunities; (ii) the ability to maintain the listing of Super Group’s securities on a national securities exchange; (iii) changes in the competitive and regulated industries in which Super Group operates; (iv) variations in operating performance across competitors; (v) changes in laws and regulations affecting Super Group’s business; (vi) Super Group’s inability to meet or exceed its financial projections; (vii) changes in general economic conditions; (viii) changes in domestic and foreign business, market, financial, political and legal conditions; (ix) future global, regional or local economic and market conditions affecting the sports betting and gaming industry; (x) changes in existing laws and regulations, or their interpretation or enforcement, or the regulatory climate with respect to the sports betting and gaming industry; (xi) the ability of Super Group’s customers to deposit funds in order to participate in Super Group’s gaming products; (xii) compliance with regulatory requirements in a particular regulated jurisdiction, or Super Group’s ability to successfully obtain a license or permit applied for in a particular regulated jurisdiction, or maintain, renew or expand existing licenses; (xiii) the technological solutions Super Group has in place to block customers in certain jurisdictions, including jurisdictions where Super Group’s business is illegal, or which are sanctioned by countries in which Super Group operates from accessing its offerings; (xiv) Super Group’s ability to restrict and manage betting limits at the individual customer level based on individual customer profiles and risk level to the enterprise; (xv) the ability by Super Group’s key executives, certain employees or other individuals related to the business, including significant shareholders, to obtain the necessary licenses or comply with individual regulatory obligations in certain jurisdictions; (xvi) protection or enforcement of Super Group’s intellectual property rights, the confidentiality of its trade secrets and confidential information, or the costs involved in protecting or enforcing Super Group’s intellectual property rights and confidential information; (xvii) compliance with applicable data protection and privacy laws in Super Group’s collection, storage and use, including sharing and international transfers, of personal data; (xviii) failures, errors, defects or disruptions in Super Group’s information technology and other systems and platforms; (xix) Super Group’s ability to develop new products, services, and solutions, bring them to market in a timely manner, and make enhancements to its platform; (xx) Super Group’s ability to maintain and grow its market share, including its ability to enter new markets and acquire and retain paying customers; (xxi) the success, including win or hold rates, of existing and future online betting and gaming products; (xxii) competition within the broader entertainment industry; (xxiii) Super Group’s reliance on strategic relationships with land based casinos, sports teams, event planners, local licensing partners and advertisers; (xxiv) events or media coverage relating to, or the popularity of, online betting and gaming industry; (xxv) trading, liability management and pricing risk related to Super Group’s participation in the sports betting and gaming industry; (xxvi) accessibility to the services of banks, credit card issuers and payment processing services providers due to the nature of Super Group’s business; (xxvii) the regulatory approvals related to proposed acquisitions and the integration of the acquired businesses; and (xxviii) other risks and uncertainties indicated from time to time for Super Group including those under the heading “Risk Factors” in our Annual Report on Form 20-F filed with the SEC on April 25, 2024, and in Super Group’s other filings with the SEC. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in other documents filed or that may be filed by Super Group from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Super Group assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Super Group does not give any assurance that it will achieve its expectations.

Super Group (SGHC) Limited

Unaudited Consolidated Statements of Profit or Loss and Other Comprehensive Income

for the Three and Six Months Ended June 30, 2024 and 2023

(€ in '000s, except for shares and (loss) / profit per share)

 

 

Three Months Ended June 30

 

Six Months Ended June 30

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Revenue

414,746

 

 

380,789

 

 

793,997

 

 

719,310

 

Direct and marketing expenses

(299,243

)

 

(277,329

)

 

(603,127

)

 

(553,039

)

General and administrative expenses

(38,664

)

 

(37,861

)

 

(77,965

)

 

(74,453

)

Other operating income

720

 

 

1,028

 

 

4,312

 

 

2,309

 

Gain on disposal of business

—

 

 

—

 

 

40,135

 

 

—

 

Depreciation and amortization expense

(21,823

)

 

(20,311

)

 

(41,725

)

 

(41,755

)

Impairment of assets

(36,775

)

 

—

 

 

(36,775

)

 

—

 

Finance income

2,534

 

 

2,070

 

 

5,672

 

 

3,266

 

Finance expense

(1,364

)

 

(537

)

 

(2,671

)

 

(1,084

)

Change in fair value of options

268

 

 

(6,087

)

 

(12,838

)

 

(8,278

)

Share of post-tax profit of equity accounted associate

151

 

 

—

 

 

151

 

 

—

 

Profit before taxation

20,550

 

 

41,762

 

 

69,166

 

 

46,276

 

Income tax expense

(21,355

)

 

(14,203

)

 

(29,099

)

 

(20,640

)

(Loss) / Profit for the period

(805

)

 

27,559

 

 

40,067

 

 

25,636

 

 

 

 

 

 

 

 

 

(Loss) / Profit for the period attributable to:

 

 

 

 

 

 

 

Owners of the parent

(791

)

 

26,578

 

 

40,293

 

 

24,173

 

Non-controlling interest

(14

)

 

981

 

 

(226

)

 

1,463

 

 

(805

)

 

27,559

 

 

40,067

 

 

25,636

 

Other comprehensive income items that may be reclassified subsequently to profit

 

 

 

 

 

 

 

Foreign currency translation

9,543

 

 

1,190

 

 

15,655

 

 

(792

)

Other comprehensive income / (expense) for the period

9,543

 

 

1,190

 

 

15,655

 

 

(792

)

 

 

 

 

 

 

 

 

Total comprehensive profit for the period

8,738

 

 

28,749

 

 

55,722

 

 

24,844

 

 

 

 

 

 

 

 

 

Total comprehensive profit for the period attributable to:

 

 

 

 

 

 

 

Owners of the parent

8,752

 

 

27,768

 

 

55,948

 

 

23,381

 

Non-controlling interest

(14

)

 

981

 

 

(226

)

 

1,463

 

 

8,738

 

 

28,749

 

 

55,722

 

 

24,844

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding, basic

501,447,006

 

 

498,517,588

 

 

501,006,962

 

 

498,337,223

 

Weighted average shares outstanding, diluted

501,447,006

 

 

499,544,535

 

 

503,615,557

 

 

499,394,699

 

 

 

 

 

 

 

 

 

(Loss) / Profit per share, basic (cents)

(0.16

)

 

5.33

 

 

8.04

 

 

4.85

 

(Loss) / Profit per share, diluted (cents)

(0.16

)

 

5.32

 

 

8.00

 

 

4.84

 

Super Group (SGHC) Limited

Consolidated Statements of Financial Position

as at June 30, 2024 and December 31, 2023

(€ in '000s)

 

 

 

Unaudited

 

 

 

 

2024

 

2023

ASSETS

 

 

 

 

Non‐current assets

 

 

 

 

Intangible assets

 

164,865

 

193,395

Goodwill

 

89,527

 

94,915

Property, plant and equipment

 

17,252

 

17,406

Right-of-use assets

 

22,728

 

24,866

Deferred tax assets

 

42,146

 

36,703

Regulatory deposits

 

12,448

 

11,951

Loans receivable

 

1,094

 

89,090

Investment in associate

 

2,255

 

—

Financial assets, including derivative

 

447

 

174

Prepayment for sportsbook software1

 

102,437

 

—

 

 

455,199

 

468,500

Current assets

 

 

 

 

Trade and other receivables

 

132,772

 

154,615

Loans receivable

 

1,664

 

6,719

Income tax receivables

 

11,008

 

12,535

Restricted cash

 

37,580

 

38,287

Cash and cash equivalents

 

306,792

 

241,923

Assets held for sale

 

—

 

38,292

 

 

489,816

 

492,371

TOTAL ASSETS

 

945,015

 

960,871

 

 

 

 

 

Non-current liabilities

 

 

 

 

Lease liabilities

 

22,270

 

23,919

Deferred tax liability

 

2,936

 

4,684

Derivative financial instruments

 

2,057

 

2,056

Contingent consideration

 

330

 

322

 

 

27,593

 

30,981

Current liabilities

 

 

 

 

Lease liabilities

 

5,552

 

5,226

Interest-bearing loans and borrowings

 

36

 

87

Deferred and contingent consideration

 

308

 

2,392

Trade and other payables

 

227,757

 

195,392

Customer liabilities

 

56,368

 

67,592

Provisions

 

7,566

 

44,826

Income tax payables

 

18,178

 

25,840

Dividends payable2

 

46,725

 

—

Derivative liability associated with assets held for sale

 

—

 

42,600

Liabilities associated with assets held for sale

 

—

 

7,140

 

 

362,490

 

391,095

TOTAL LIABILITIES

 

390,083

 

422,076

EQUITY

 

 

 

 

Issued capital

 

289,753

 

289,753

Treasury shares

 

(2,632)

 

(2,632)

Accumulated other comprehensive profit / (deficit)

 

8,231

 

(7,424)

Retained profit

 

241,339

 

240,618

Equity attributable to owners of the parent

 

536,691

 

520,315

Non-controlling Interest

 

18,241

 

18,480

SHAREHOLDERS' EQUITY

 

554,932

 

538,795

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

 

945,015

 

960,871

 

1 Prepayment for sportsbook software arose as a result of a reclassification of the loan receivable from Apricot Investments Limited

2 The Company expects that any distributions made during the current tax year will be treated as dividends for US federal income tax purposes

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240807173636/en/

Investors: investors@sghc.com

Media: media@sghc.com