Super Group posts Q3 revenue down by 2% amid decreases in online casino and brand license fee income

Online sports betting and gaming company Super Group has reported its third-quarter financial results. Revenue for the period amounted to €307.8 million ($319 million), decreasing by 2% over the same period in the prior year; while profit after tax came at €34.9 million ($36.2 million), down from a profit of €50.5 million ($52.3 million) in Q3 2021.

The Betway and Spin parent company attributed the Q3 revenue decrease to a decline in online casino net revenue and brand license fee income, which was partially offset by an increase in sports betting net revenue. As for EBITDA in the quarter, it amounted to €60.9 million ($63.2 million), down from €75.9 million in the same period for the prior year.

Despite the declines, Neal Menashe, CEO of Super Group, commented on the results in positive terms: “Super Group’s online-only business model and ongoing focus on improved customer experience through enhanced global technology platforms continue to ensure optimal customer engagement and value.” 

“Together with effective investment in our brands and efficient allocation of our capital, this provides us with a sound path for long-term growth,” he added. Revenue from Betway accounted for €168.1 million ($174.4 million) of Q3's total; while revenue from multi-brand casino offering Spin made up the remaining €139 million ($144.2 million).

The company saw a 7% increase in Monthly Average Customers for the quarter, amounting to 2.7 million, excluding customers of Jumpman Gaming. Super Group acquired a majority ownership interest in Jumpman on September 1.

Cash and cash equivalents were €266 million ($275.9 million) as of September 30 and €293.8 million ($304.7 million) as of December 31, 2021, a net reduction in cash of about €30 million. In terms of expenses, direct and marketing costs grew year-on-year, along with general and administrative expenses.

Alinda van Wyk, CFO of Super Group, stated: “Super Group remains financially strong and we continue to optimize our global footprint and operate more efficiently to leverage our scale. We remain focused on investing in technology and marketing, as well as other opportunities that will provide us with long-term growth and profitability.”

For the year-to-date period, revenue stands at €963.1 million ($999.3 million), 1.6% less than in the first nine months of the past year. Operating profit for the period amounted to €99 million ($102.7 million).

Earlier this month, Super Group reiterated its initial 2022 full-year guidance. The company expects between €1.15 billion and €1.28 billion ($1.19 billion and $1.33 billion) for revenue and between €200 million and €215 million ($207.5 million and $223.1 million) for EBITDA.

See the full Super Group results for Q3 here.