Super Group projects 2023 revenue of $1.48 billion, U.S. spending to fall in 2024
Betway parent Super Group (NYSE: SGHC) reiterated its 2023 revenue and earnings before interest, taxes, depreciation and amortization (EBITDA) guidance at the 26th Annual Needham Growth Conference on Friday.
The sports betting operator said its operations outside the U.S. had revenue of $1.48 billion and EBITDA of $263.27 million last year.
This year, we set annual records for both deposits and net gaming revenue, and in Q4 we set new records for unique monthly active customers, demonstrating continued customer engagement and our presence in key markets leadership," CEO Neil Menashe said in a statement.
Shares in Supergroup edged lower on Friday in a day of broad weakness for gaming stocks. The company will report fourth-quarter results in March.
Supergroup wants to cut U.S. spending
In an increasingly competitive environment for sports betting operators in the United States, Super Group added that its net EBITDA investment in the country in 2024 will be lower than its previous forecast of $76.78 million. The operator did not give a reason for the reduction in capital spending.
It's been more than two years since Super Group first went public as a public company after merging with a special purpose acquisition company (SPAC). Super Group has not been immune to the trend as the share prices of numerous SPAC-destroying companies, including several gaming industry, have plummeted. The stock has lost nearly 28% over the past 90 days and has lost 13.56% since the start of 2024.
A key part of the operator's 2024 forecast is a return to growth in Canada, a market that had previously weighed on results.
"Growth continues in Africa and is picking up again in Canada, which is more than enough to offset the impact of regulatory changes in India," Menashe added in the statement.
Super Group has upside potential
Super Group's decision to cut spending in the U.S. is likely to bear fruit, as the company has yet to gain significant market share in the U.S. and the savings could be plowed back into markets where the operator and its brand gain greater recognition.
The Betway brand is well-known in markets outside the United States, and its Spin division is a popular online casino operator in several regions outside the United States.
“The Group is licensed in 25 jurisdictions and holds leading positions in key markets in Europe, the Americas and Africa. The Group’s successful sports betting and online gaming products are underpinned by its scale and leading technology, allowing it to enter quickly and efficiently New markets.”
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Source: www.casino.org
