Super Group claims “strongest quarter” in company history as it announces US exit
The operator will be revealing further insights and strategic plans during its upcoming investor day on 18 September.
Key points:
– Super Group raises expected revenue to $2bn and adjusted EBITDA to $480m
– This comes after a record Q2 for the company
– However, Super Group is still planning to exit all US operations
Super Group has raised its full-year revenue and EBITDA guidance after positive results in Q2.
The company revealed that Q2 is expected to be the “strongest quarter in the Group’s history.” Total revenue for the full year is now expected to exceed $2bn, rather than the prior amount of $1.93bn.
As for the adjusted EBITDA, this has risen from the previous amount of $457m to $480m.
Neal Menashe, Super Group CEO, said: “We are very pleased with our performance in the second quarter, reflecting continued momentum and discipline across our core markets and further validating the strength of our operating model and brands.
“We remain focused on driving profitable and sustainable growth through consistent execution and continue to be super-confident in the long-term growth potential of our business.”
This comes as no surprise for anyone who read the Super Group Q1 report from earlier this year, which detailed high levels of growth across the company’s verticals – including a 25% year-on-year revenue increase.
Super Group also revealed its intentions to exit all US iGaming operations. This is due to the evolving regulatory landscape, financial performance and an evaluation into global priorities.
The company currently lists its primary jurisdictions are Europe, the Americas and Africa.
Menashe continued: “This is a difficult decision, particularly because our US team has worked hard and made progress over recent quarters.
Good to know: Super Group is the holding company for Betway and Spin
“Nonetheless, recent regulatory developments combined with ongoing assessment of capital allocation requirements have led us to believe that our stringent hurdle for return on capital will likely not be met in this market any time soon.
“We therefore intend to focus capital and resources on markets where we see the greatest opportunity for scalable, sustainable, profitable super growth, with a disciplined emphasis on operational efficiency.”
Alinda Van Wyk, Super Group CFO, said: “Various strategic exit options are under consideration.
“We are still early in the process but nonetheless would expect to incur a one-time cash restructuring cost of approximately $30m-$40m in connection with such an exit and are actively pursuing multiple efforts to minimize the impact thereof.
“Further details regarding these potential costs will be shared during our second quarter earnings release.”
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