Super Group(US:SGHC)2024-03-06 19:35Financial Data and Key Metrics Changes - Total revenue for Q4 2023 was €352 million, with operational EBITDA of €54 million, reflecting challenges in October due to low sports margins [4][12] - For the full year 2023, total revenue reached a record €1.406 billion, up 8% year-on-year, and operational EBITDA was €255 million, representing a 22% increase [17][40] - The EBITDA margin for the year improved to 18%, up 200 basis points from 2022, with a strong balance sheet showing €242 million in unrestricted cash and no debt [28][40] Business Line Data and Key Metrics Changes - Casino net revenues increased by 22% year-on-year to €289 million, driven by strong performance in Africa, Canada, and Europe, despite the closure of the Indian market [10][19] - Sportsbook revenue for Q4 declined by 39% year-on-year to €53 million, impacted by unfavorable soccer results and the Indian market closure [24] Market Data and Key Metrics Changes - Customer growth was significant, with an average of 4.7 million unique active monthly customers, an increase of 1.2 million year-on-year [19] - In Africa, revenue growth remained strong despite challenges, while Canada showed recovery post-regulation changes [20][21] Company Strategy and Development Direction - The company is focused on optimizing its global footprint, particularly in the U.S., and is evaluating state-by-state strategies for market entry and potential M&A opportunities [8][44] - Continued investment in marketing and technology is prioritized to drive long-term efficiencies and innovation [39][44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit top-line growth for 2024, supported by a diverse customer base and strong engagement metrics [6][30] - The competitive landscape in the U.S. is being closely monitored, with adjustments to strategy as necessary [8][61] Other Important Information - The company is finalizing agreements to gain full control of its Betway global sportsbook technology, which is expected to enhance its operational capabilities [22] - The company plans to report adjusted EBITDA instead of operational EBITDA going forward, aligning with best practices [27] Q&A Session Summary Question: Plans for U.S. business in 2024 - Management is assessing options on a state-by-state basis, including potential M&A and focusing on casino states [32] Question: Strategy in Brazil - The company is awaiting regulatory developments in Brazil to understand the implications for its products and taxes [33] Question: Regions with best growth potential - Africa and parts of Central Europe, particularly Spain and Italy, are highlighted as strong growth areas [34] Question: iGaming legislation and M&A interests - The pace of iGaming regulation rollout has been slower than expected, and M&A opportunities are being evaluated carefully [52][54] Question: Technology migration status - Seven out of nine states have migrated to the new technology, with two large states expected to complete migration soon [49] Question: Focus on profitable states - Management is considering narrowing focus to states that offer both iGaming and sports betting for better profitability [64]