Africa and Middle East becomes Super Group’s third biggest market after 460% annual revenue rise

Super Group has reported a 45% increase in full-year revenue to €1.32bn for 2021 while opening its books to investors for the first time.

The operator, which owns the Betway and Spin brands, is more transparent than before having completed a SPAC merger with Sports Entertainment Acquisition Corp in January.

Super Group is now listed on the New York Stock exchange and boasts a market cap just below $5bn.

While 2021 revenue eclipsed 2020 levels of $908m, profit (+58%), EBITDA (+46%) and adjusted EBITDA (+60%) all rose sharply to €235.9m, €314.5m and €289.5m, respectively.

Other KPIs of note saw monthly average customers for the year climb by 75% to 2.62 million, while cash and cash equivalents jumped by 112% to €293.8m.

Super Group said the increase in annual revenue was driven by strong organic growth in most operating markets, despite the impact of tightening regulations in certain European countries and market exits elsewhere.

Online casino provided the bulk of 2021 revenue at €858.7m, €629.9m of which came from the Spin brand.

Betway remained the strongest performing brand in the Super Group portfolio, however, contributing €687.8m of overall revenue.

In terms of geography, North America was the group’s best performing territory at €593.7m, representing 45% of total. Asia and the Pacific was second with €329.8m, while Africa and the Middle East was third on €217.4m, demonstrating Super Group’s exposure to unregulated markets compared to many of its publicly listed online gambling competitors.

Africa and Middle East revenue shot up by 459.9%, while the only regional decline for Super Group came in Europe, where revenue fell by 23.4% compared to 2020 levels.

Discussing the gains in Africa and Middle East, Regulus Partners analyst Paul Leyland said: “A lot of the optical outperformance is likely due to the timing of pre-IPO subsidiary consolidation (Yakira, Gazelle, Raging River, Raichu Investments).

“However, it also reflects the extent to which several African countries now have a credible betting-led digital market capable of secular growth: the adoption curve generated by Covid-19 and wider customer engagement with digital entertainment has more than overcome Kenyan regulatory headwinds,” he added.

The operator has already launched in three new markets during 2022, including Bulgaria.

Marketing and branding is a major strategic play for Super Group and the Betway brand in particular. The firm signed over 30 sponsorship agreements last year and has added a further nine in 2022 to date.

Super Group CEO Neal Menashe said: “We are delighted to report strong growth and profitability in 2021, demonstrating the successful execution of our global growth strategy.

“We listed on the New York Stock Exchange at the start of 2022, a major landmark for Super Group after two decades of leadership in more than 20 markets around the world.

“With an eye on our growth and profitability profile, we couldn’t be more excited to execute on our plans in 2022 and beyond,” he added.

Much of Super Group’s US performance is dictated by its acquisition of Digital Gaming Corporation, which is expected to close in H2 2022.

The subsidiary is live in six US states, including New Jersey and Pennsylvania, with Betway branding and has secured market-access deals in up to 12 states.

Alinda van Wyk, CFO of Super Group, said: “Despite regulatory tightening in some European markets, we exceeded our forecasts for both revenue and adjusted EBITDA.

“The past year has been challenging and exciting, culminating in the NYSE listing of Super Group. We are looking forward to new opportunities and challenges in the years to come,” she added.

As part of its transition from private to public company, Super Group hired Lisa Kampf as its new vice president of investor relations earlier this month.