Posted on: December 10, 2024, 11:25h.
Last updated on: December 10, 2024, 11:34h.
Shares of Super Group (NYSE: SGHC), the parent company of Betway, rallied Tuesday after the gaming company lifted its 2024 revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA) guidance while also announcing a special dividend.
The company said it now expects 2024 sales of $1.68 billion, up from a prior forecast of $1.63 billion on EBITDA of more than $364.3 million to at least $380.1 million. Super Group increased its 2024 financial guidance six months after telling investors it was pulling out of the US sports market following an internal review.
The operator told shareholders the impetus behind that decision was narrow pathways to profitability in the US, which is a top-heavy sports wagering market dominated by two companies, making it difficult for smaller competitors to gain market share. Super Group told investors in January it would spend less money on US sports wagering activities this year than it had in years past.
Super Group is one of roughly 10 operators to depart the US market over the past couple of years and one of several to do so this year.
Super Group Returning Capital to Investors
The gaming company also told investors it will soon be paying a special dividend.
In light of the company’s performance, Super Group’s Board of Directors has declared a special cash dividend on its ordinary shares of 15¢ per share, payable on 8 January 2025 to shareholders of record as of the close of business on 23 December 2024,” according to a statement.
That followed news of the operator’s first annual payout of 10 cents per share, which was announced in June. On that basis, the stock, which is up 120.50% year to date, yields 1.43%.
“We have consistently said that we will consider returning excess cash to shareholders, and the outstanding performance of the business throughout 2024 alongside the continued strength of our balance sheet, has given us the platform to be able to do this,” said CEO Neal Menashe in the statement.
Super Group Can Thrive Without US Exposure
While the US is the fastest-growing sports betting market in the world, and the one with the most exposure to affluent bettors, Super Group’s improved financial outlook confirms the operator is thriving in other jurisdictions, such as Africa and Canada, and that it may have smart for the company to depart this country.
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.
Super Group has licenses to offer wagering in 25 markets across Africa, the Americas, Asia, and Europe. While the firm left the US, it previously highlighted the resumption of its growth trajectory in Canada.
