Super Group posts 7.3% YoY revenue increase in Q1 2022
In its first results as a publicly listed company, operator leans heavily on the Betway brand to prop up the business
Super Group has reported a 7.3% rise in revenue year-on-year (YoY) in Q1 2022, reaching €334.48 (£284.55m), mainly thanks to its Betway brand, which accounted for just over half of the group’s revenue.
Adjusted EBITDA for the parent company of Betway and multi-brand online casinos under the Spin umbrella jumped 14% YoY to €61.5m.
Betway brought in revenue of €186.9m for the company, which equates to 55.9% of the company’s total revenue for the quarter.
The brand performed best in Africa and the Middle East, with the region generating €63.8m in revenue.
North America was still the group’s biggest market bringing in €150.5m, thanks to its brand Spin, which is up 1.4% YoY.
After that came Asia and the Pacific, which brought €79.2m, a 16.6% YoY increase.
Monthly average customers for the quarter increased by 10% YoY, reaching 2.6 million in Q1 2022 compared to 2.4 million in Q1 2021.
The area that saw the biggest decrease was in cash and cash equivalents, which stood at €272.7m by the end of March, a drop from the €293.8m posted on 31 December 2021. However, this is still a 40% YoY increase for the company from the €196.2m reported on 31 March 2021.
The firm paid out €201.5m in costs over this period, including the costs and adjustments made for the business combination and for the company going public in January 2022.
This has consequently led to a loss after tax of €163.2m, a major downturn from the €38.6m profit posted for the same period in 2021.
The first quarter saw Super Group launch both sports betting and casino in Bulgaria.
It also signed nine new partnerships in Q1, including the Milwaukee Bucks, the Stock Car Pro Series Brazil and the Ghana Women’s Football League.
Lastly, Super Group was awarded a licence for its Betway and Spin brands in Ontario.
Alinda Van Wyk, CFO of Super Group, pointed out that the factors surrounding the firm’s SPAC merger last year make it tricky to compare the numbers posted this year to those recorded in 2021.
Van Wyk said: “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.”
Neal Menashe, CEO of Super Group, added: “During the first quarter of 2022, Super Group began operating as a US publicly listed company and continued to expand in both existing and new markets in line with our growth strategy.”
Menashe continued: “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.”
In its earnings call, following the publication of these results, Menashe did say that it could potentially be “tough to meet or exceed our 2022 revenue guidance”.
He went on to say that the business will issue new guidance when it publishes its Q2 results later this year.
Super Group’s stock was down 23.28% on the Nasdaq to $6.23 at the time of writing.