Super Group(US:SGHC)2025-02-25 14:30Financial 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]