Super Group(SGHC) - 2025 Q1 - Quarterly Report

Q1 2025 Financial and Operational Highlights Super Group achieved record Q1 2025 revenue and Adjusted EBITDA, driven by strong operational performance and customer growth Overall Performance Summary Super Group achieved record Q1 2025 revenue of $516.8 million, with 120% Adjusted EBITDA growth and increased active customers | Financial Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | $516.8M | $411.9M | +25% | | Profit for the period | $59.4M | $44.6M | +33% | | Adjusted EBITDA | $111.1M | $50.4M | +120% | | Monthly Active Customers | 5.3M | 4.7M | +14% | - CEO Neal Menashe attributed the record first-quarter revenue to strong sports betting margins, consistent casino margins, and effective customer acquisition and retention strategies[3] - The company's balance sheet remains strong with $351.0 million in unrestricted cash, even after paying $95.7 million in dividends during the quarter[3][6] - Effective January 1, 2025, the company changed its presentation currency from Euros to US dollars to enhance comparability with US-listed peers. Comparative figures have been restated[5][8] Financial Performance Analysis The company's Q1 2025 financial performance was driven by strong revenue growth across key regions and product lines Revenue by Geography In Q1 2025, revenue growth was primarily driven by the Africa & Middle East and Europe regions, with Africa & Middle East becoming the largest region by revenue at 39% of the total | Region | Q1 2025 Revenue ($M) | Q1 2024 Revenue ($M) | YoY Change | | :--- | :--- | :--- | :--- | | Africa and Middle East | 203 | 151 | +34.4% | | North America | 181 | 153 | +18.3% | | Europe | 96 | 63 | +52.4% | | Asia-Pacific | 32 | 38 | -15.8% | | South/Latin America | 5 | 7 | -28.6% | | Total | 517 | 412 | +25.5% | - Growth was driven by Africa, Europe, and North America (predominantly Canada), which was partially offset by declines in LATAM, Middle East, and Asia-Pacific markets[6] - Betway is the primary revenue driver in Africa & Middle East and Europe, while Spin dominates in North America[9] Revenue by Product Online Casino remains the largest revenue source, growing 25.5% to $404 million and accounting for 78% of total revenue in Q1 2025, with Sports Betting also showing strong growth | Product Line | Q1 2025 Revenue ($M) | Q1 2024 Revenue ($M) | YoY Change | | :--- | :--- | :--- | :--- | | Online casino | 404 | 322 | +25.5% | | Sports betting | 106 | 79 | +34.2% | | Brand licensing | 5 | 6 | -16.7% | | Other | 2 | 5 | -60.0% | | Total | 517 | 412 | +25.5% | - Online casino and sports betting revenues are treated as derivatives under IFRS 9, not as revenue from contracts with customers under IFRS 15[11] 2025 Outlook Super Group reaffirms its full-year 2025 guidance for revenue and Adjusted EBITDA, signaling confidence in future performance Full-Year 2025 Guidance Super Group has reaffirmed its full-year guidance for 2025, signaling confidence in its ability to meet its previously stated financial targets for revenue and Adjusted EBITDA - The company's combined guidance for 2025 remains unchanged[7] | Metric | 2025 Guidance | | :--- | :--- | | Revenue | > $2.014 billion | | Adjusted EBITDA | > $421 million | Consolidated Financial Statements (Unaudited) The unaudited consolidated financial statements reflect increased profit, a strong financial position, and significant dividend payments Statement of Profit or Loss The company's profit for Q1 2025 increased to $59 million from $45 million in Q1 2024, despite a rise in direct and marketing expenses, offset by the absence of a prior-year one-time gain | Metric ($M) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | 517 | 412 | | Direct and marketing expenses | (367) | (330) | | Profit before taxation | 89 | 53 | | Profit for the period | 59 | 45 | | Profit per share, basic (cents) | 11.70 | 8.99 | | Profit per share, diluted (cents) | 11.68 | 8.97 | Statement of Financial Position As of March 31, 2025, Super Group's total assets were $1,086 million and total liabilities were $444 million, resulting in total shareholders' equity of $642 million, with cash decreasing due to dividend payments | Metric ($M) | Mar 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Assets | 1,086 | 1,096 | | Cash and cash equivalents | 351 | 388 | | Total Liabilities | 444 | 517 | | Dividends payable | — | 75 | | Shareholders' Equity | 642 | 579 | - The decrease in cash and cash equivalents from $388 million to $351 million is largely attributable to the payment of $95.7 million in dividends during the quarter[6][27] Non-GAAP Financial Measures Non-GAAP measures like Adjusted EBITDA provide additional insights into Super Group's core operating performance and profitability Explanation of Non-GAAP Measures Super Group utilizes non-GAAP financial measures, including EBITDA and Adjusted EBITDA, to provide additional insight into its core operating performance and comparability with peers - The company uses non-GAAP measures such as EBITDA, Adjusted EBITDA, Adjusted EBITDA ex-US, and Adjusted EBITDA US to supplement IFRS results[13] - Adjusted EBITDA is defined as profit before depreciation, amortization, finance income/expense, and income tax, further adjusted for items like RSU expense, change in fair value of options, and unrealized foreign exchange[13] Reconciliation of Profit to Adjusted EBITDA The reconciliation shows a significant 120% year-over-year increase in Adjusted EBITDA to $111 million for Q1 2025, driven by strong performance outside the U.S. | Reconciliation ($M) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Profit for the period | 59 | 45 | | EBITDA | 107 | 73 | | Adjusted EBITDA | 111 | 50 | | Adjusted EBITDA, ex-US | 121 | 74 | | Adjusted EBITDA, US | (10) | (24) | - The loss from the U.S. business narrowed to $9.8 million from $24 million in the prior-year quarter[5][17]