Super Group is exiting the U.S. sports betting market at a good time for the gaming operator.
The sports betting and iGaming company that owns brands Betway and Spin announced a record €414 million ($452 million) in revenue in the second quarter of 2024, up 9% year-over-year.
Ex-U.S. business generated €408 million ($445 million) in revenue and produced a record Adjusted EBITDA of €98 million ($107 million). That figure from the three months ending June 30 represented 11% year-over-year growth and a margin of 24%.
Average unique monthly active customers grew 21% to 4.5 million in the non-U.S. markets.
“The second quarter of 2024 was our strongest quarter ever and demonstrates the exceptional progress we continue to make as a business,” Super Group CEO Neal Menashe said. “I'm glad we have reached a conclusion in shutting the U.S. sports betting market and we continue more generally to optimize our global footprint both in terms of geography and product.”
Parting ways
So why is a gaming company that’s on solid ground leaving the U.S. sports betting market? Menashe said the company wasn’t “happy with the status quo,” and 80% of Super Group’s revenue comes from online casinos.
Two Super Group brands will continue iGaming operations in Pennsylvania and New Jersey. Menashe said the company hopes to continue expanding online casinos into some of the other legal U.S. markets.
Sports betting operations will cease in Arizona, Colorado, New Jersey, Pennsylvania, Iowa, Louisiana, Indiana, Ohio, and Virginia. Menashe said the U.S. shutdown cost won’t exceed €45 million ($50 million), and selling off licenses in some U.S. states could offset those losses.
Super Group, the parent company of Betway and Spin, says the plan to shut down its online sportsbook in the U.S. (albeit while maintaining iGaming operations in NJ and PA) is expected to cost no more than €45M, or about US$50M. pic.twitter.com/TnVTphFxi0
— Geoff Zochodne (@GeoffZochodne) August 7, 2024
With sports betting ending, Super Group says U.S. losses are expected to fall from €30 million to €20 million in the second half of 2024.
Eyes on Alberta
Super Group is enjoying success in Canada. The province of Ontario is producing strong iGaming growth and year-over-year increases in customers and deposits.
Alberta is close to expanding gaming regulations and offerings. If the government in the Western province does allow private-sector operators, Menashe said Super Group is “super ready for it.”
“Everything we’ve done in Ontario, we’ve learned how to do it better,” Menashe said. “The teams are ready when Alberta regulates.”
Looking ahead
The record second quarter, a clear U.S. exit strategy, improved cost efficiencies, and new branding deals have Super Group bullish on the future.
“Given the strength we have seen in the first half of the year, we are confident in raising our ex-U.S. Adjusted EBITDA guidance for the full year 2024 to greater than €300 million,” Super Group CFO Alinda van Wyk said. “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."
Super Group’s sportsbook Betway recently announced a branding-exposure deal with English Premier League reigning champion Manchester City, giving the betting company its fourth partner in the world’s most popular soccer league.
“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,” Menashe said. “Our outlook for the remainder of the year is strong, and we look forward to making 2024 a super year for Super Group."
