Super Group (Sghc) Limited ((SGHC)) has held its Q4 earnings call. Read on for the main highlights of the call.
Super Group (Sghc) Limited recently held its earnings call, revealing a positive sentiment driven by strong financial results for 2024. The company achieved record-breaking revenue and EBITDA growth, particularly in its ex-US segment, and saw significant customer engagement. Despite challenges in the German market and high marketing expenses, the overall performance and future outlook remain optimistic.
Record Revenue and EBITDA Growth
Super Group reported an impressive 18% year-over-year increase in total revenue ex the US, reaching €1.66 billion for 2024. The adjusted EBITDA ex the US also set a new record, growing 53% year-over-year to €391 million. This financial achievement highlights the company’s robust performance outside the US market.
Strong Fourth Quarter Performance
In the fourth quarter, Super Group continued its upward trajectory with total revenue ex the US growing 38% year-over-year to €487 million. The adjusted EBITDA ex the US surged by 152% year-over-year to €129 million, with a margin of 26%, underscoring the company’s strong finish to the year.
Increase in Customer Engagement
The company set new customer records, achieving a daily record of just under 2.2 million customers and a new high for average unique monthly active customers of 5.3 million. This increase in customer engagement reflects the effectiveness of Super Group’s strategies in attracting and retaining users.
Positive Developments in US iGaming Strategy
Super Group’s US revenue in Q4 grew by 64% year-over-year to €14 million, focusing solely on iGaming. This growth indicates positive momentum in the company’s US strategy, which is centered on expanding its iGaming presence.
Strong Balance Sheet and Increased Dividends
The company concluded the quarter with €356 million in unrestricted cash and no debt, demonstrating financial stability. Additionally, Super Group announced a special cash dividend of $0.15 per share, bringing the total dividend for the year to $0.25 per share, reflecting its commitment to returning value to shareholders.
Challenges in German Market
Super Group faced growth issues in the German market due to regulatory challenges, which impacted overall performance. Despite these hurdles, the company remains focused on navigating these challenges to improve its market position.
High Marketing Spend
Marketing expenses accounted for 23% of revenue, representing a significant cost. While this was a planned expenditure, it highlights the company’s aggressive approach to maintaining and expanding its market presence.
Forward-Looking Guidance
Super Group provided robust guidance for 2025, building on its strong 2024 performance. The company expects ex-US total revenue to grow over 10% year-over-year, reaching at least €1.830 billion, with adjusted EBITDA anticipated to exceed €435 million. For its US operations, Super Group forecasts total revenue of around €85 million, with a significant reduction in total investment. The company aims for profitability in its US iGaming strategy by 2027 and announced an increase in the quarterly dividend target to $0.04 per share, reflecting confidence in future growth.
In summary, Super Group’s earnings call conveyed a positive sentiment, driven by record financial performance and strategic growth initiatives. The company’s strong results, particularly in the ex-US segment, coupled with promising developments in the US iGaming strategy, position it well for continued success. Despite challenges in the German market and high marketing costs, Super Group’s forward-looking guidance suggests a bright future ahead.