Posted on: January 12, 2024, 03:58h.
Last updated on: January 12, 2024, 04:32h.
Betway parent Super Group (NYSE: SGHC) reiterated 2023 revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA) forecasts Friday at the 26th Annual Needham Growth Conference.
The sportsbook operator said it expects to have posted sales of $1.48 billion on EBITDA of $263.27 million in its non-US operations last year.
For the year, we set annual records for both deposits and net gaming revenue, and during the fourth quarter, we achieved a new record for unique monthly active customers, reflecting consistent customer engagement and our leading position in key markets,” said CEO Neal Menashe in a statement.
Shares of Super Group traded slightly lower Friday on what was broadly a weak day for gaming equities. The company will deliver fourth-quarter results in March.
Super Group to Pare US Spending
Amid an increasingly competitive environment for sportsbook operators in the US, Super Group added that its net EBITDA investment in this country for 2024 will be less than the previously forecast $76.78 million. The operator didn’t provide a reason for the lower capital outlay view.
Super Group is more than two years removed from its debut as a public firm following a merger with a special purpose acquisition company (SPAC). With shares of so many de-SPAC-ed companies faltering, including several in the gaming industry, Super Group hasn’t been immune to that trend. The stock has shed almost 28% over the past 90 days and is off 13.56% since the start of 2024.
Integral to the operator’s 2024 outlook is the point that it sees growth in Canada, a market that was previously a drag on results, returning.
“The growth in Africa continues and has resumed in Canada — this growth has more than offset the impact of regulatory changes in India,” added Menashe in the statement.
Super Group Has Potential for Rebound
Super Group’s decision to cut US spending could prove fruitful because it hasn’t amassed significant market share here, and the savings could be redirected to markets where the operator and its brands are more widely recognized.
The Betway brand is well-known in markets outside the US, and its Spin unit is a popular online casino provider in several regions outside this country.
“The group is licensed in 25 jurisdictions, with leading positions in key markets throughout Europe, the Americas, and Africa. The group’s successful sports betting and online gaming offerings are underpinned by its scale and leading technology, enabling fast and effective entry into new markets,” according to a previously issued statement.
