Global digital gaming company Super Group is to assume full control of its Apricot-licensed sportsbook software technology. The parent company of Betway and Spin has announced its decision to purchase the license from its longstanding software partner.
The move will see Super Group take full control of its sportsbook technology, for use in markets all over the world. The company will also have the option to build or buy new properties using the technology in the future.
Super Group’s decision comes at a significant financial cost. The deal has been agreed at c.€140 million, with additional sums payable should certain earn-out parameters be reached.
The company is to pay an upfront fee of c.€100 million for the software, which effectively cancels an outstanding loan owed to the brand. The additional €40 million will be paid in two parts, over the next two years. It has been agreed that up to €20 million can be paid in ordinary Super Group shares.
If revenue from Super Group sportsbooks more than doubles during the earn-out period, which ends on Dec. 31, 2035, the company will also be liable for additional payments that could reach €210 million.
"I’m delighted that we have now concluded terms for the sportsbook – we have been working closely to agree to an equitable deal with a favorable structure for both parties," said Neal Menashe, chief executive officer of Super Group.
"This is an exceptional opportunity for Super Group to take full control of our sportsbook technology, which would enable maximum flexibility for organic growth as well as M&A opportunities. We’ll continue to deliver the best sports betting and gaming experience to our customers around the world as the benefits of this deal are realized.”
Highest revenue recorded in a first quarter
Super Group’s decision to invest in its sportsbook technology platform follows exceptionally strong financial results.
The company recently announced record results for its first quarter, with highlights including a revenue increase of 12% to €379.3 million, from €338.5 million in the same period from the previous year. The jump in revenue has been attributed to expansion from markets in Africa and North America, predominantly Canada.
Profit was also on the rise in the three-month period. The company reported profit of €41 million for the first quarter 2024. This figure included a €40.1 million gain on disposal of the B2B division of Digital Gaming Corporation Limited, as well as a €13.1 million non-cash charge, which was related to the increase in fair value of option liability.
This comes on the heels of a strong finish to 2023, in which Super Group set a yearly revenue record of $458.2 million in Q4.
Rising popularity of Super Group brands
Super Group’s monthly active customers also rose sharply in the first quarter.
The company shared an increase of 33%, reporting 4.7 million monthly active customers during the first quarter of 2024. This is a significant increase from the same period in the previous year, where the company had 3.5 million monthly active customers.
"We achieved record results for a first quarter of €374 million of revenue and €69 million of Adjusted EBITDA, for the ex-U.S. business," said Alinda van Wyk, chief financial officer of Super Group.
"Our laser focus on creating a leaner, more efficient operating model has delivered results, with Q1 operating expenses as a percentage of net revenue falling to below 19%. Investment into high-growth areas of the business continues at pace and we remain confident that we are in a strong position to realize our goals set for 2024."
