Super Group (SGHC) Full Year 2024 Earnings: Revenues Beat Expectations, EPS Lags

Super Group (SGHC) Limited, the parent company of Betway and Spin, has reported its full-year 2024 earnings, revealing a mixed bag of results that have left investors with a sense of both optimism and caution. The company's revenue for the year surged to approximately €1.7 billion, marking an 18% increase from €1.4 billion in 2023. This growth is particularly impressive given the competitive landscape of the online sports betting and gaming industry. However, the earnings per share (EPS) for the year fell short of expectations, raising questions about the company's profitability and future prospects.

The revenue growth was driven by several key factors. Firstly, Super Group's focus on key growth markets and offering a highly bespoke and localized product has been instrumental. The company's proprietary data science and technology have guaranteed operational excellence, enhancing customer acquisition and responsible monetization. This technological edge has enabled Super Group to stay ahead of the competition and attract more customers, contributing to the significant revenue increase.

Secondly, the company's commitment to maintaining a lean cost base and having a significant marketing budget has also played a crucial role. This approach ensures that Super Group can invest in marketing and customer acquisition while keeping operational costs under control, thereby maximizing profitability.



However, the EPS for the year fell short of expectations, raising questions about the company's profitability and future prospects. The company reported a profit before tax of €188.8 million for the year, a more than tenfold increase from €16.8 million in 2023. This growth was partly driven by a €40.1 million gain from the sale of DGC’s B2B division in February 2024. However, non-cash charges related to the fair value adjustment of liabilities and impairment of the DGC cash-generating unit also impacted profitability.

The company's financial position remains strong, with unrestricted cash increasing from €241.9 million at the end of 2023 to €355.8 million at the end of 2024. This strong financial position will enable Super Group to continue investing in growth opportunities and returning excess cash to shareholders.

Looking ahead, Super Group has provided optimistic financial guidance, projecting double-digit growth in both total revenue and adjusted EBITDA. The company expects total revenue to exceed €1.91 billion and adjusted EBITDA to surpass €400 million in 2025. When broken down by region, non-US revenue is projected to be over €1.83 billion, with adjusted EBITDA of more than €435 million. In the US market, Super Group anticipates generating approximately €85 million in revenue while forecasting an adjusted EBITDA loss between €30 million and €35 million.



In conclusion, Super Group's full-year 2024 earnings reveal a company that is growing rapidly but still facing challenges in terms of profitability. The company's focus on key growth markets, lean cost base, and significant marketing investments have contributed to its strong revenue growth. However, the EPS for the year fell short of expectations, raising questions about the company's profitability and future prospects. Investors will be watching closely to see if Super Group can continue to deliver on its growth promises while improving its profitability.