Super Group (Sghc) Limited ((SGHC)) has held its Q1 earnings call. Read on for the main highlights of the call.
Super Group (SGHC) Limited’s recent earnings call painted a picture of robust growth and strategic challenges. The company celebrated a record-breaking first quarter, with notable revenue and EBITDA growth driven by strong performances in Africa and Europe. However, the call also highlighted some hurdles, including a decline in the APAC region and regulatory challenges in New Zealand, which could impact future performance.
Record-Breaking First Quarter Revenue
Super Group achieved an all-time high first quarter total revenue of $517 million, marking a 25% increase from the previous year. This impressive growth underscores the company’s ability to capitalize on market opportunities and expand its global footprint.
Significant Growth in Adjusted EBITDA
The company reported a remarkable 120% increase in adjusted EBITDA year-over-year, reaching $111 million. This growth, with a combined margin of approximately 22%, reflects Super Group’s efficient operational strategies and cost management.
Strong Performance in Africa and Europe
Africa and Europe emerged as key growth drivers, with Africa experiencing a 54% year-over-year increase and Europe a 53% rise. Notably, the UK market surged by 87%, highlighting the effectiveness of Super Group’s regional strategies.
Successful U.S. Business Transition
The U.S. iGaming business showed signs of improvement, with EBITDA losses narrowing from $11 million in Q4 2024 to $10 million in Q1 2025. This transition indicates a positive trajectory for Super Group’s U.S. operations.
High Customer Engagement
Super Group set a new record for unique monthly active customers, averaging 5.4 million for the quarter. This high level of engagement is a testament to the company’s strong customer retention and acquisition strategies.
Strong Cash Position
Ending the quarter with $351 million in unrestricted cash and no debt, Super Group demonstrated a robust free cash flow profile. This financial strength positions the company well for future investments and growth opportunities.
APAC Region Decline
The APAC region faced challenges, with a 13% year-over-year decline due to currency weaknesses and the closure of non-performing markets. This downturn highlights the volatility and risks associated with operating in diverse international markets.
Regulatory Challenges in New Zealand
Growth in New Zealand was hindered by regulatory limits on marketing, resulting in a 7% year-over-year decline in dollar terms. These constraints underscore the complexities of navigating regulatory environments in different regions.
Potential Tax Hike in New Jersey
Super Group is closely monitoring a proposed tax hike in New Jersey, which could impact profitability in the U.S. market. The company remains vigilant in assessing the potential financial implications of such regulatory changes.
Forward-Looking Guidance
Super Group maintains its fiscal year guidance of over $2 billion in revenue and $421 million in adjusted EBITDA. The company continues to focus on strategic investments and efficient marketing spend, with ongoing opportunities for growth in its ex-U.S. markets. Despite challenges in the APAC region, Super Group remains optimistic about its growth prospects.
In summary, Super Group’s earnings call highlighted a strong first quarter performance, driven by significant revenue and EBITDA growth. While the company faces challenges in certain regions, its robust cash position and strategic focus on growth opportunities provide a solid foundation for future success.