Sports betting giant Super Group has released impressive financial results for the second quarter of 2024. The company is redirecting its operations to markets with the greatest potential for sustainable profitability. Thus, Super Group revealed significant growth in both revenue and adjusted EBITDA, excluding operations in the United States
Exit from the American market
Super Group has decided to exit the US sports betting market, keeping only its iGaming operations in New Jersey and Pennsylvania. This strategy reflects the search for more profitable and stable markets, part of the commitment to focus on areas with more attractive profit margins. So, instead of betting on risky expansion, the company focuses on regions where it already has a solid and profitable base.
Significant financial results
The company’s total revenue, excluding the US, reached €408 million, an increase of 9% year-on-year. Adjusted EBITDA, also excluding American operations, reached a record €98 million, growing 11%. Additionally, Super Group raised its non-US adjusted EBITDA forecast to over €300 million, signaling optimism for the future.
Investments and expansion
Even with the exit from the US sports betting market, Super Group has not completely abandoned the region. The company announced that it intends to invest around €40 million in the American market in 2025, focusing mainly on growing iGaming operations in New Jersey and Pennsylvania.
Additionally, Super Group is evaluating the sale of sports betting licenses in some states and shows interest in expanding to Latin American markets, with an emphasis on Mexico and Brazil.
Positive highlights and challenges
But despite solid financial results, Super Group faces some challenges:
- Costs of around €45 million for closing US sports betting operations
- Regulatory changes in the United Kingdom, Canada and the Netherlands have negatively impacted its operations.
Super Group is confident in its ability to maintain EBITDA margins of over 20% and its revenue forecast for the second half of 2024. The company is also focused on optimizing marketing spend to achieve greater operational efficiency.
Positive points regarding Super Group:
- Have a healthy financial situation
- Have no debts
- Have cash of €307 million.
- $1.69 billion in market capitalization
- Revenue growth in the last twelve months (until the first quarter of 2024) of 13.93%
- 45.96% gross profit margin
*EBITDA stands for “Earnings Before Interest, Taxes, Depreciation, and Amortization.”
