Super Group Reaffirms 2023 Revenue, EBITDA Guidance, Reignites Betway Sponsorship Debate
Super Group (NYSE: SGHC), the parent company of Betway, recently reaffirmed its 2023 revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA) forecasts at the 26th Annual Needham Growth Conference. The sportsbook operator anticipates revenues of $1.48 billion and an EBITDA of $263.27 million from its non-US operations for the previous year.
CEO Neal Menashe expressed, “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.”
Nevertheless, Super Group’s shares experienced a slight decline on Friday amidst an overall weak gaming equities market. The company is slated to announce its fourth-quarter results in March.
In light of the increasingly competitive US sportsbook industry, Super Group disclosed that its net EBITDA investment in the country for 2024 will be lower than the previously estimated $76.78 million. The company did not provide a specific reason for the reduced capital outlay view.
Following its merger with a special purpose acquisition company (SPAC) over two years ago, Super Group’s stock has encountered challenges, declining by nearly 28% over the past 90 days and 13.56% since the beginning of 2024.
However, the management is optimistic about growth in Canada, which is expected to offset the impact of regulatory changes in India. Menashe remarked that “growth in Africa continues and has resumed in Canada.”
Super Group’s decision to reduce US spending could be beneficial, as the company has not captured a significant market share in the country. Moreover, the savings from the reduced investment could be redirected to markets where the operator and its brands hold greater recognition.
The debate around the company’s sponsorship deals, such as Betway’s presence in international sports, has also been reignited. Despite its challenges in the US market, the Betway brand remains prominent outside the country. The company’s successful sports betting and online gaming offerings are supported by its scale and leading technology, enabling rapid entry into new markets.
Overall, Super Group’s reaffirmed guidance and strategic adjustments could position the company for a potential rebound. As the company seeks to strengthen its foothold in international markets, the debate surrounding its sponsorship agreements, including Betway’s involvement in sports, continues to be a topic of interest.