Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Super Group (SGHC) Limited, and emphasizes the importance of using these recommendations in conjunction with other analytical tools like Zacks Rank for making informed investment decisions [1][4][9]. Group 1: Brokerage Recommendations - Super Group (SGHC) has an average brokerage recommendation (ABR) of 1.25, indicating a consensus between Strong Buy and Buy, with 75% of recommendations being Strong Buy and 25% being Buy [2][12]. - The article highlights that brokerage firms often exhibit a positive bias in their ratings due to vested interests, which can mislead investors [5][9]. - It is suggested that the ABR should not be the sole basis for investment decisions, as studies indicate limited success in using brokerage recommendations for predicting stock price increases [4][6]. Group 2: Zacks Rank - Zacks Rank categorizes stocks into five groups based on earnings estimate revisions, with a strong correlation to near-term stock price movements, making it a more reliable tool than ABR [7][10]. - The Zacks Consensus Estimate for Super Group (SGHC) has increased by 22.5% over the past month to $0.29, reflecting analysts' optimism about the company's earnings prospects [12][13]. - The Zacks Rank for Super Group (SGHC) is currently 2 (Buy), which aligns with the positive ABR, suggesting it may serve as a useful guide for investors [13].

Financial Data and Key Metrics Changes - Total revenue excluding the US reached an all-time high of €1.66 billion, growing 18% year-over-year [8] - Adjusted EBITDA excluding the US also set a record at €391 million, a 53% year-over-year increase, with a margin of 24% [8] - For Q4, total revenue excluding the US grew 38% year-over-year to €487 million, while adjusted EBITDA grew 152% year-over-year to €129 million, achieving a margin of 26% [9] Business Line Data and Key Metrics Changes - The US business saw revenue grow by 64% year-over-year to €14 million in Q4, with total investment for the quarter at €11 million, bringing the full year total to €61 million [12][13] - The company set new customer records, including a daily record of just under 2.2 million customers and an average of 5.3 million unique monthly active customers [10] Market Data and Key Metrics Changes - Growth in existing markets was emphasized, with a focus on profitability in new markets [30] - The company is seeing good growth in several European markets, while Germany has not performed well due to regulatory issues [38] Company Strategy and Development Direction - The company aims to refine its global footprint and focus on key growth markets while enhancing product and technology [7] - A shift to an iGaming-only strategy in the US is expected to lead to reduced investment and a path to profitability [13] - The company plans to increase its minimum quarterly dividend target to $0.04 per share, reflecting confidence in its business [15] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving robust growth in 2025, with expectations for total revenue to grow above 10% year-over-year to at least €1.83 billion [17] - The company is focused on sustainable growth supported by ongoing marketing investments [18] Other Important Information - The company finished the quarter with unrestricted cash of €356 million and no debt [14] - A special cash dividend of $0.15 per share was announced, totaling over $125 million returned to shareholders [15] Q&A Session Summary Question: Marketing spend for 2025 - Management confirmed that marketing spend is budgeted at 23% of revenue for 2025, which is expected to yield good returns [22][23] Question: Dividend increase and future special dividends - Management expressed satisfaction with the increased quarterly dividend and indicated a desire to exceed last year's total dividend, contingent on business conditions [24][25] Question: Growth opportunities in key markets - Management stated that growth is primarily from existing markets, with a focus on sustained profitability and product enhancements [30][31] Question: 2025 revenue guidance and performance - Management clarified that the guidance reflects a double-digit increase in revenue and adjusted EBITDA for the ex-US business, despite a year-over-year growth step down [42][46] Question: Contribution of African assets - Management noted that the African sportsbook has been beneficial, with a focus on maintaining a high marketing budget to enhance market share [49][50] Question: Regulatory environment and potential acquisitions - Management indicated that they are assessing acquisition opportunities globally, focusing on tuck-in M&A across regulated landscapes [59]

Financial Data and Key Metrics Changes - Total revenue excluding the U.S. reached an all-time high of EUR 1,660 million, growing 18% year-over-year [6] - Adjusted EBITDA excluding the U.S. also set a record at EUR 391 million, a 53% year-over-year increase, with a margin of 24% [6] - For Q4, total revenue excluding the U.S. grew 58% year-over-year to EUR 487 million, with adjusted EBITDA growing 152% year-over-year to EUR 129 million, achieving a margin of 26% [7] Business Line Data and Key Metrics Changes - The company set new customer records, including a daily record of just under 2.2 million customers and an average of 5.3 million unique monthly active customers [8] - The U.S. revenue for Q4 was EUR 14 million, marking a 64% year-over-year growth [10] - Total investment for the quarter was EUR 11 million, totaling EUR 61 million for the full year [11] Market Data and Key Metrics Changes - The company is focusing on existing markets, with growth driven by countries in Africa, Europe, Canada, and New Zealand [23] - New market openings are being approached with a focus on sustainable profitability, with recent openings including Botswana [27] Company Strategy and Development Direction - The company aims to refine its global footprint and focus on key growth markets while enhancing products and technology [5] - A long-term margin target of greater than 24% has been set for the ex U.S. business [9] - The company is committed to maintaining a marketing spend of around 23% of revenue to support growth [16][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving robust growth in 2025, with total revenue expected to grow above 10% year-over-year to at least EUR 1.83 billion [12] - The company is focused on finding a path to profitability in the U.S. market, with expectations for reduced investment in the coming year [11][13] - Management highlighted the importance of cost efficiencies and operational leverage in navigating potential tax increases in the U.S. [54] Other Important Information - The company announced a special cash dividend of $0.15 per share, totaling over $125 million paid to shareholders [11] - The minimum quarterly dividend target has been increased to $0.04 per share [12] Q&A Session Summary Question: Marketing spend impact on 2025 guidance - Management confirmed that marketing spend is expected to remain around 23% of revenue, which is a larger number due to higher revenue [16][17] Question: Confidence in dividend increase and future special dividends - Management expressed satisfaction with the increased quarterly dividend and indicated a desire to exceed last year's total dividend [18][19] Question: Growth opportunities in key markets - Management stated that growth is primarily from existing markets, with a focus on sustained profitability and product enhancements [23][24] Question: 2025 revenue guidance and potential pitfalls - Management clarified that the guidance reflects double-digit growth for the ex U.S. business, despite a step down from 2024's performance [32][34] Question: Regulatory environment and potential acquisitions - Management is assessing opportunities for acquisitions in complementary regions and emphasized the importance of sustainable profitability in their strategy [47][49]

February 25, 2025 4Q 2024 Earnings Review DISCLAIMERS Forward-Looking Statements Certain statements made in this presentation are "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, expectations and timing related to market entries and expansion, projections of market opportunity, growth and profitability expected growth of Super Group's custome ...

Core Viewpoint - Analyst recommendations play a significant role in influencing stock prices, but their reliability is questionable, particularly for Super Group (SGHC) Limited [1][4]. Group 1: Analyst Recommendations - Super Group (SGHC) has an average brokerage recommendation (ABR) of 1.25, indicating a consensus between Strong Buy and Buy, with 75% of recommendations being Strong Buy and 25% being Buy [2][12]. - The ABR is calculated based on recommendations from four brokerage firms, with three recommending Strong Buy and one recommending Buy [2]. Group 2: Limitations of Brokerage Recommendations - Studies indicate that brokerage recommendations often do not successfully guide investors in selecting stocks with the highest price increase potential [4]. - Analysts from brokerage firms tend to exhibit a strong positive bias in their ratings due to vested interests, leading to a disproportionate number of Strong Buy recommendations compared to Strong Sell [5][9]. Group 3: Zacks Rank vs. ABR - The Zacks Rank, which is based on earnings estimate revisions, is a more reliable indicator of a stock's near-term price performance compared to the ABR [7][10]. - The Zacks Rank is updated more frequently and reflects timely changes in earnings estimates, while the ABR may not always be current [11]. Group 4: Earnings Estimates for SGHC - The Zacks Consensus Estimate for Super Group (SGHC) has increased by 4.3% over the past month to $0.29, indicating growing optimism among analysts regarding the company's earnings prospects [12]. - The recent change in the consensus estimate, along with other factors, has resulted in a Zacks Rank of 2 (Buy) for Super Group (SGHC) [13].

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Group 1: Company Overview - Super Group (SGHC) Limited currently holds a Momentum Style Score of B, indicating a favorable momentum characteristic [2] - SGHC has a Zacks Rank of 2 (Buy), suggesting strong potential for outperformance in the market [3] Group 2: Performance Metrics - SGHC shares have increased by 2.97% over the past week, while the Zacks Gaming industry remained flat during the same period [5] - Over the last quarter, SGHC shares rose by 40.78%, and over the past year, they have surged by 144.08%, significantly outperforming the S&P 500, which increased by only 1.46% and 22.19% respectively [6] Group 3: Trading Volume - SGHC's average 20-day trading volume is 837,129 shares, which serves as a bullish indicator when combined with rising stock prices [7] Group 4: Earnings Outlook - In the past two months, one earnings estimate for SGHC has increased, while none have decreased, raising the consensus estimate from $0.21 to $0.29 [9] - For the next fiscal year, one estimate has also moved upwards with no downward revisions noted [9] Group 5: Conclusion - Given the positive performance metrics and earnings outlook, SGHC is positioned as a promising investment opportunity with a Momentum Score of B [11]

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Super Group (SGHC) Limited (SGHC) .Super Group (SGHC) currently has an ave ...

Super Group Limited (NYSE: SGHC ) operates the Betway and Spin sportsbook and iGaming brands with presence in especially Africa and Middle East with 38% of Q3 revenues, North America (primarily Canada) with 36% of revenues, and Europe with 17% of revenues among otherI am an avid investor with a major focus on small cap companies with experience in investing in US, Canadian, and European markets. My investment philosophy to generating great returns on the stock market revolves around identifying mispriced se ...

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?Let's take a look at what these Wall Street heavyweights have to say about Super Group (SGHC) Limited (SGHC) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.Super Group (SGHC) currently has an average b ...

Super Group (SGHC) Limited (SGHC) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.Shares of this company have returned +26.9% over the past month versus the Zacks S&P 500 composite's +3.1% change. The Zacks Gaming industry, to which Super Group (SGHC) belongs, has gained 8.6% over this period. Now the key question is: Where could the stock be headed in the near ter ...