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Shares in Super Group are trading 11% higher today (6 March) after the company reported record revenue of €359.9m and €1.4bn for Q4 and full-year 2023, respectively.

Q4 2023 results

Super Group reported its best performing Q4 ever in 2023, with revenue up 9.4% year-on-year to €359.9m.

That increase came on the back of a significant 38% increase in the operator’s number of monthly average customers, from 3.4 million in Q4 2022 to 4.7 million.

Around 55% of revenue came from the Betway brand with the remaining 45% coming from Spin.

Still, the company saw a significant increase in the proportion of revenue coming from online casino, which grew from 73% in Q4 2022 to 85% in Q4 2023. Online sports betting accounted for the remaining 15%.

That change came about as quarterly sports betting revenue dropped by 39% to €53m, as a result of customer friendly sporting results in October as well as Super Group’s withdrawal from the Indian market.

Growth in online casino revenue, which increased 22% to €289m, was driven by significant growth in Africa, Canada and several European markets, which helped offset the reduction in betting revenue.

Adjusted EBITDA for the quarter was €33.6m, down around 19% year-on-year, as the impact of impairments on goodwill, a change in the fair value of options, market closures and other expenses had a significant impact on the firm’s EBITDA.

Overall, the business declared a loss before tax of €44.9m for the quarter, compared to a profit before tax of €21.1m in Q4 2022.

Full-year results

For full-year 2023, the picture was much the same as Super Group also reported record-high revenue of €1.4bn, up around 11% year-on-year.

Adjusted EBITDA for the year was €198.2m, down 6% year-on-year from €208.5m.

While the business declared a loss before tax in Q4, the business did turn a small profit of €16.8m for the full year, down from €216.5m in 2022.

The significant reduction in profit came following non-cash charges of €28.6m relating to the acquisition of Digital Gaming Corporation’s (DGC) B2B assets, and a further non-cash charge of €35.9m “relating to the impairment of the DGC cash generating unit.”

The comparison with 2022 is also made more stark as in that year, profit included non-cash gains of €246.8m relating to the fair value of warrant and earnout liabilities.

Management commentary and outlook

“We have made tremendous strides in 2023 and are delighted to have achieved an all-time revenue record of €1.4bn, enabling us to comfortably surpass our guidance for the year,” said Super Group CEO Neal Menashe. 

“Q4 2023 was particularly strong. Despite the challenging start, we set record breaking totals for revenue, customer numbers and deposits cementing our position as a growing, cash generative and geographically diverse online sports betting and iGaming operator. 

“iGaming continues to be the largest part of our business, allowing us to manage moments of volatility in the sportsbook to deliver record-breaking results. We are confident that we will achieve the double-digit top-line growth that we are projecting for 2024.”

CFO Alinda van Wyk added: “For the fourth quarter, we delivered ex-US revenue of €352m and ex-US operational EBITDA of €54m, which resulted in our December margin hitting 24%, the strongest ever. 

“To have surpassed our guidance, in the face of multiple headwinds, is indicative of our laser focus on realising cost efficiencies and investing in growth where we can see a clear return. 

“In the US, the operational EBITDA loss was less than expected for the year and we are actively evaluating all of our options.”

For 2024, the business is guiding towards total revenue of €1.55bn, representing a 10% increase year-on-year. 

Adjusted EBITDA is expected to come in at over €280m, representing an adjusted EBITDA margin of more than 18%.

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