The Rise of Super Group: New Revenue Dynamics in Q1
Africa and the Middle East Surpass North America in Revenue Generation
Super Group, the operator of Betway, has made headlines with its impressive financial results for the first quarter, achieving a record revenue of $517 million. This marks a significant increase of 25% compared to $412 million during the same period last year.
The growth trajectory is most evident in regions such as Africa and Europe. Notably, Super Group has also experienced growth in North America, particularly in Canada, showcasing the success of its iGaming initiatives.
A Shifting Revenue Landscape
The burgeoning markets in Africa and the Middle East have now positioned themselves as the largest revenue contributors for Super Group. The African market, led primarily by South Africa, accounted for 39% of total revenue in Q1, a slight rise from last year’s 37%. South Africa alone contributed $203 million—an impressive growth of 34.4%. In contrast, the Middle East saw a downturn, but the overall African market made up for it with strong performance across various nations.
While North America’s revenue from Super Group experienced growth, its share of the total revenue slightly decreased to 35%. In comparison, Europe saw its revenue share increase from 15% to 19%, underscoring an evolving market dynamic. Specifically, North America generated $181 million, up 18.3%, thanks in large part to the Canadian market.
Revenue from Europe surged by 52.4% to $96 million. However, challenges persist in other regions, as Asia-Pacific revenue fell by 15.8% to $32 million, with South and Latin America reporting a 28.9% drop to just $5 million.
Strong Growth in Betway’s Performance
Delving deeper into the numbers, sports betting remains Super Group’s primary revenue driver, with this segment seeing a 25.5% increase, generating $404 million. Meanwhile, the online casino segment outperformed expectations, growing by 34.2% to reach $106 million. Additional revenue streams from brand licensing and external customers contributed $5 million and $2 million, respectively.
The Betway brand emerged as the leading revenue generator, with combined revenues from both sports betting and online casino rising by 32%. The Spin brand, which focuses solely on online casino operations, also reported a 16.4% increase, totaling $199 million.
Profits on the Rise Despite Previous Sales
Turning to expenditures, Super Group saw an uptick in direct and marketing costs, although administrative expenses remained stable. Following adjustments for various costs like depreciation, the pre-tax profit reached $89 million, reflecting a 67.9% increase.
Despite the previous year’s boost from the sale of Digital Gaming Corporation’s (DGC) B2B division, which yielded a $44 million gain, Super Group managed to sustain its growth trajectory. The company paid $30 million in taxes this quarter, resulting in a net profit of $59 million—up 31.1% year-on-year. Factoring in a favorable $17 million effect from foreign currency translations, the net profit balloons to $76 million, representing a staggering 105.4% increase.
EBITDA for the quarter climbed to $107 million, an increase of 46.6%. However, Super Group noted that the comparison includes several factors related to the DGC sale.
Future Outlook
Looking forward, Super Group remains optimistic, maintaining its guidance for the year with expected total revenue around $2.01 billion and adjusted EBITDA projected at $421 million.
CEO Neal Menashe emphasized the strong start to 2025, highlighting impressive revenue growth, a boost in customer acquisition, and effective retention strategies. “Our first-quarter results are a testament to the outstanding betting margins and our strategic focus on optimizing investments across all markets,” he stated.
In conclusion, Super Group’s growth narrative illustrates a transformative shift in revenue dynamics within the gambling industry, particularly as emerging markets begin to challenge traditional powerhouses like North America.