Super Group Inc (SHGC), the parent company of Betway and Spin brands, has praised its diverse geographic make-up as a clear factor in overcoming challenging macroeconomic headwinds bearing down on gambling markets.   

Completing its second quarter as an NYSE-listed enterprise, SGHC registered Q2 group revenues of €320m, down 10% on 2021 comparative results of €355m.

The slowdown in Q2 headline revenues was linked to a decline in online casino net gaming revenues, which dropped across both the Spin and Betway brands to €408m (Q22021: €445m)

“The decrease in casino net gaming revenue was driven by the impact of inflationary factors on disposable income,” SHGC noted.

“The prior-year quarter casino net gaming revenue also included a positive impact from the global shutdowns during the COVID pandemic. Brand licence fee income declined due to renegotiated contract terms.”

Positive Q2 outcomes saw the Betway Sports brand register a 5% NGR increase to €110m (Q2 2021: €104m), maintaining growth against tough like-for-like comparatives across all markets.

A breakdown of geographic performance saw Betway’s Africa and Middle East unit register an 18% NGR increase to €63m, which continues to serve as SHGC’s biggest revenue-generating geography (35% of group revenues).

Betway’s Africa and Middle East growth helped offset geographic NGR declines in Europe (-21%), Asia-Pacific (-12%) and North America (-10%).   

Despite recording NGR declines, SHGC underscored strengthened period KPIs that saw active monthly customers increase by 3% to 2.7 million across all markets

Chief Executive Neal Menashe commented: “The current macro environment may provide near-term headwinds but Super Group’s balance sheet remains strong and our business remains fundamentally sound.

“By investing in our global business, we continue to focus on organic and strategic growth opportunities in pursuit of long-term sustainable profits.”

Overcoming NGR deficits, SGHC proclaimed a stronger earnings result as Q2 EBITDA improved to €319m, representing a threefold increase on 2021 results of €91m

The firm’s strengthened EBITDA results reflect the group recouping €298m in non-cash earnouts related to its business reorganisation and further listing on the NYSE exchange (completed on 27 January).

Reflecting its NYSE listing, SGHC presented a comparative adjusted EBITDA that excludes transaction fees and period earnout adjustments, which yielded period earnings of €63m (Q2_2021: €90m)

Closing its Q2 accounts, Super Group maintains cash equivalents of €220m, down from pre-NYSE listing reserves of  €293m – a reduction attributed primarily to ‘the result of cash used to redeem shares in connection with closing the business combination”.

Q2 results saw Alinda van Wyk provide her first statement as Group CFO. She said: “Super Group is a profitable and debt free company with a continuing track record of consistent cash generation.

“Despite some current challenges, we have increased monthly active users while focusing on financial discipline to maintain profitability and we continue to invest in the future growth of Super Group.”

Commenting on the outlook, SHGC outlined that it had now consolidated all related properties (eight transactions) to form its stand-alone North American business.