Super Group Q2 revenue dips 10% as Africa and Asia continue to grow
Betway and Spin parent company points to macroeconomic impact on online casino as core reason for overall downturn
Super Group has reported a 10% year-on-year (YoY) downturn in Q2 2022 revenue as the operator highlighted a decrease in casino revenue driven by “inflationary factors on disposable income”.
The parent company of Betway and multi-brand casino operator Spin recorded €320.8m in revenue compared to €355.2m for Q2 2021.
Super Group pointed to the difficult macroeconomic environment, coupled with 2021 being bolstered by Covid-19 lockdowns, as the core reasons for the downturn.
Casino revenue amounted to €204.3m for Q2, a fall of 11% YoY from €231.1m.
The New York-listed company posted €110.7m in sports betting revenue during the period, representing a slight increase of 5.2% from Q2 2021’s €105.2m.
Elsewhere, brand licensing revenue decreased by 66.9% from €17.5m to €5.8m with the business noting renegotiated contract terms as the reason for the slip.
Breaking down the revenue by geographic region, North America continued to represent the lion’s share of income.
North America accounted for 44% of revenue after returning €142.1m which is supported by its presence in Canada, as well as its launch into the US via its Digital Gaming Corp. partnership.
Europe continued to slip in significance, amounting to just 10% of group revenue with €30.5m.
Elsewhere, Africa and the Middle East continues to be a budding segment for the operator, increasing its revenue share to 20% from 15% and returning €54.9m.
Asia represented 24% of total group revenue after posting €79.8m during the period.
Adjusted EBITDA dropped by 30% from €90.8m in Q2 2021 to €63.6m during the reporting period.
Post-tax profit was significantly boosted by non-cash adjustments relating to its public listing via its SPAC merger.
Post-tax profit for the period amounted to €298.6m compared to €63.9m in 2021 due to a €219.3m adjustment for fair value gains of earnout liabilities and €64m of fair value gains of warrant liabilities
Cash available at the end of Q2 stood at €220m due to the use of cash reserves to redeem shares of part of the group’s SPAC merger.
Monthly average customers increased by 3% to 2.7 million during the second quarter.
Neal Menashe, Super Group CEO, said: “The current macro environment may provide near term headwinds but Super Group’s balance sheet remains strong and our business remains fundamentally sound.
“By investing in our global business, we continue to focus on organic and strategic growth opportunities in pursuit of long-term sustainable profits.”
CFO Alinda van Wyk echoed Menashe’s comments and pointed to growth in users during the reporting period.
Van Wyk said: “Despite some current challenges, we have increased monthly active users, while focusing on financial discipline to maintain profitability and we continue to invest in the future growth of Super Group.”
Super Group’s share price was up 3.5% to $5.66 at the time of writing, which followed a 12% gain yesterday.