Super Group's sales surge by 25% in Q1, with Africa and the Middle East being the major revenue sources.
Super Group Roars onto Record-Breaking First Quarter With $517 Million Revenue
Looking at the latest financials, Super Group surged ahead during Q1, raking in a whopping $517 million. That's a solid 25% increase from the $412 million earned in Q1 last year [1].
The growth was undeniably articulated across major core regions, including both Africa and Europe. The group's iGaming product in North America also saw success, particularly in Canada.
Intriguingly, the Middle East and African regions together now account for the lion's share of revenue at Super Group, climbing to the highest percentage [1]. South Africa, in particular, contributed 39% of all Q1 revenue, up from a tied 37% last year [1]. This impressive shift resulted in a revenue of $203 million, marking a 34.4% increase [1].
Meanwhile, North America's revenue share dipped slightly to 35%, but the revenue itself climbed 18.3% to $181 million, largely due to growth in the Canada market [1]. Europe saw a substantial revenue growth of 52.4% to $96 million [1].
On the flip side, Asia-Pacific revenue slipped 15.8% to $32 million, while revenue in South and Latin America dipped 28.9% to $5 million [1].
Betway Revenue Skyrockets by 35.8%
Drilling down into Q1 details, sports betting was the principal revenue driver for Super Group. Revenue from this segment increased by 25.5% year-on-year to $404 million [1].
However, the group reported a more substantial growth within the online casino segment, with revenue rising by an impressive 34.2% to $106 million [1]. Additional gains of $5 million came from brand licensing and $2 million from external customer activities.
Star performer for the quarter was none other than Betway, with revenue increasing by 32% [1]. The Spin brand, offering only online casino, saw revenue rise by 16.4%. [1]
Super Group Posts Profit Despite DGC Sale Impact
Moving on to costs, direct and marketing expenses were higher, but administrative costs remained steady. After accounting for other costs, including depreciation and amortisation, pre-tax profit surged by 67.9% to $89 million [1].
Despite Super Group benefitting from the sale of the B2B division of Digital Gaming Corporation (DGC) to Games Global in February 2024, which resulted in a $44 million gain in Q1 last year [1], the group paid $30 million in tax in Q1, yielding a net profit of $59 million, up by 31.1% year-on-year [1]. However, when considering a $17 million positive impact from foreign currency translation, this pushed the bottom-line net profit up to $76 million, a significant increase of 105.4% [1].
As for EBITDA, it surged by 46.6% to $107 million. However, Super Group noted several adjustments for this year-on-year comparison, primarily in relation to the DGC sale.
Looking ahead, the combined guidance remains unchanged, with Super Group predicting revenue around $2.01 billion for the full year and an adjusted EBITDA of $421 million [1].
"We started 2025 off strong," CEO Neal Menashe stated in the results report. "We delivered an impressive Q1, marked by substantial revenue growth, a surge in customer acquisition, and effective retention strategies [1]. Our combined revenue hit a record for a first quarter, attributable to exceptional sports betting margins, consistent casino margins, and ongoing efforts to optimize return on investment across all markets." [1]
[1]: Data sourced from Super Group's Q1 2025 results
Insights:
- Super Group's growth is primarily attributed to higher sportsbook margins, a stable online casino revenue, effective customer retention, and acquisition strategies.
- The significant growth in the UK, Canada, and other regions like Africa demonstrates a broader global expansion strategy by Super Group.
- The revenue distribution reflects a balanced growth across multiple key markets, with a particularly strong performance in more mature regions like the UK.
- Innovations in technology have played a significant role in Super Group's business strategies, as seen in their impressive Q1 revenue of $517 million, with a noteworthy increase in their online casino segment.
- Amid the bustling world of finance and investing, sports such as betting have become crucial components in the financial success of companies like Super Group, with sports betting serving as the principal revenue driver for Q1, raking in $404 million.
