Super Group(US:SGHC)2023-03-14 17:00Financial Data and Key Metrics Changes - Total revenue for 2022 was €1.3 billion, exceeding guidance, while operational EBITDA was €208 million, aligning with the midpoint of guidance [4][11] - Revenue decreased by 2% from 2021 but remained 25% above 2020 levels, indicating resilience despite challenges [4] - Average monthly active customers increased to €3.4 million, a 21% rise from the previous year, driven by major sporting events and acquisitions [5] Business Line Data and Key Metrics Changes - Sports book revenue increased by €5 million in Q4, growing 5% [34] - Online casino net revenue decreased slightly by €3 million or 1% in Q4, attributed to regulatory transitions and a decline in the APAC region [35] - Customer numbers for the casino segment rose by 12% in 2022 compared to 2021, and 41% when comparing Q4 results [13] Market Data and Key Metrics Changes - Growth in Africa and Europe (excluding Ontario) was strong, while Ontario's revenue was impacted by regulatory transitions [12] - The U.K. saw significant growth, including a full quarter of revenue from Jumpman Gaming [13] - The company operates in eight U.S. states, with ongoing efforts to optimize technology and customer journeys [8][17] Company Strategy and Development Direction - The company aims to enhance customer experience through ongoing improvements to global platforms and technology ownership discussions [6] - The U.S. market is viewed as an attractive opportunity, with investments being evaluated on a state-by-state basis [7] - Marketing is expected to account for 25% of net revenue, reflecting continued investment in brand and marketing channels [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges from macroeconomic factors and regulatory changes but remains focused on long-term growth and profitability [27][41] - The company plans to maintain a disciplined approach to investments, particularly in the U.S. market, while leveraging cash flow from global operations [30][50] - Expectations for 2023 include revenue of €1.35 billion and operational EBITDA of €220 million, driven by modest growth and improved cost control [38] Other Important Information - The company completed a warranty exchange to clean up its capital structure at a low cost [10] - The balance sheet remains healthy with unrestricted cash of €255 million at the end of December [77] - The company is committed to optimizing its global footprint and may exit markets that do not present feasible long-term growth opportunities [31][75] Q&A Session Summary Question: Can you discuss the U.S. partnerships and any regulatory landscape updates? - Management highlighted ongoing regulatory changes in the U.K. and Germany, with a focus on compliance and technology adaptation [49] Question: Will 2023 be the peak investment year for the U.S.? - Management indicated that investment levels may remain similar in 2024, with a focus on state-by-state feasibility [58] Question: Can you elaborate on the guidance for revenue and market exits? - Management explained that revenue projections consider macroeconomic impacts and volatility, with decisions to exit markets based on operating EBITDA potential [68][71]