Record revenue for Super Group as deal to acquire platform is unveiled

 Following the announcement of an agreement to fully buy its sportsbook technology platform, Betway operator Super Group posted Q1 revenues of €379.3m (£326.7m/$407.6m), its biggest ever for a first quarter.
 Compared to the €359.9m earned in the last quarter of 2024, Super Group's Q1 revenue total is up 5.4%.  It was a 12.1% increase compared to the first quarter of 2023 as well.

 The increase in revenue was credited by Super Group to growth in the North American and African markets.  Super Group's revenue in North America increased by 8.2% year over year, while sales in Africa and the Middle East increased by 58.9%.  Super Group's revenue is now 38% from 27% in Q1 2023.  The markets in the Asia-Pacific and Middle Eastern regions did see declines, though, for Super Group.

 Super Group reported a first quarter profit of €41 million.  That sum, however, encompassed a €40.1m pre-tax profit from Digital Gaming Corporation's (DGC) B2B division sale to Games Global and a €13.1m non-cash charge for change in fair value of option liability.

 The first quarter's adjusted EBITDA was €46.5m.  The same quarter a year ago brought in €36.1m, thus a 28.8 percent increase.  From €33.6m in the fourth quarter of 2023, this is an increase of 38.4 percent.  After taking off the US sector's adjusted EBITDA loss of €22.3m, Super Group's total adjusted EBITDA was €68.7m.

 Super Group CEO Neal Menashe was quite complimentary of the firm's prospects for 2024 and beyond.

 "This strong performance has been achieved through our global team's continued dedication and investment in our core markets, which are producing excellent returns. This sets us up well for the rest of the year," Menashe stated.

 Sportsbook software being sought after by Super Group
 The Super Group has announced the signing of final agreements to buy its sportsbook software technology in its entirety.  Super Group's software partner, Apricot, is now licensing the sportsbook.

 Super Group has negotiated with Apricot's licensee to purchase the platform.  An initial payment of €140 million was due as part of the agreement, with further payments due upon the fulfilment of specific earn-out criteria.  Super Group may be eligible for additional payments of up to €210 million if its sportsbook revenue doubles or even triples by the end of 2035.  The earn-out would be determined by taking a percentage of the net gaming income from Super Group's sportsbook each month.

 Super Group has agreed to pay €100 million as a first payment by paying off a debt.  Super Group will also split the €40 million payment evenly over the following two years.  The corporation has the option to pay up to €20 million in ordinary Super Group shares.

 In 2022, Super Group said it has begun negotiations to buy its sportsbook platform.  Even if it has finally reached an agreement, the corporation previously stated that it could not provide assurances on the matter.

 Super Group is one step closer to its goal of having complete control over its sportsbook technology thanks to this transaction.  As an added bonus, the business may now include the technological stack into its upcoming projects.

 For Menashe, the deal represents a once in a lifetime chance for Super Group to seize complete control of their sportsbook technology, opening up endless possibilities for both organic expansion and mergers and acquisitions.

 "As the advantages of this deal become apparent, we will persist in providing our customers all over the globe with the top sports betting and gaming experience."

 Additional licencing from authorities is a condition of the arrangement.  The estimated time for these approvals is six to twelve months.

 Fall in sports betting propels Betway online casino to new heights
 Betway's online casino division contributed €222 million to the company's bottom line in the first quarter, offsetting declines in sports betting and brand licensing.

 Earnings from sports betting came in at €76.8 million, down 5.7 percent from €81.4 million in the corresponding quarter a year ago.  Revenue from trademark licensing, meanwhile, dropped 33% to €5.9 million.

 Nevertheless, Betway's online casino division brought in €135.3m.  The same quarter a year ago brought in €103 million, thus this was a 31.4% increase.  The majority of Betway's first quarter income (60.9%) came from their online casino.

 Revenues for Super Group's Spin casino brand also increased year-on-year, rising from €140.2m in Q1 2023 to €156.9m in Q2 2023.

 From 3.5 million in Q1 2017 to 4.7 million in Q1 2018, the number of monthly active customers across all of Super Group's brands climbed by 33%.

 Super Group is hopeful about what is ahead
 The amount of cash and equivalents stood at €289.2m as of 31 March, up from €241.9m at the end of 2023.  The €69.8 million increase was credited by Super Group to their operational efforts.  As for the €20.4m that went out of its investment activities, most of it went into more asset investments and a €10m loan to Apricot Investments.

 Super Group's general and administrative expenses increased from €36.6m to €39.2m, and their direct and marketing expenses jumped from €275.7m to €303.9m in Q1 2023.  But the cost of depreciation and amortisation fell to €19.9m.

 Menashe said that the corporation was targeting double-digit top-line growth for 2024 when he announced the results for 2023.  Excluding the United States, Super Group expects total revenue to increase by 10% to €1.6bn and net revenue to expand by 12% in 2024.

 Alinda van Wyk, chief financial officer, thinks the firm is seeing results from its efforts to streamline operations.

 According to Van Wyk, "Q1 operating expenses as a percentage of net revenue falling to below 19%" is evidence that the company's efforts to streamline operations have paid off.

 "We are certain that we will be able to achieve our objectives for 2024 because investment in our fastest-growing areas of the company is proceeding at a rapid pace."