• Second Quarter 2022 Revenue of €320.8 million
  • Profit after tax of €298.6 million for the second quarter of 2022 includes €283.3 million of non-cash fair value gains associated with the mark to market of the warrant and earnout liabilities
  • Second Quarter 2022 Adjusted EBITDA of €63.6 million
  • Cash and cash equivalents was €220.0 million at June 30, 2022
  • Management to host conference call today at 8:30 a.m. ET

Super Group (SGHC) Limited (NYSE: SGHC) (“SGHC” or “Super Group”), the parent company of Betway, a leading online sports betting and gaming business, and Spin, the multi-brand online casino, today announced second quarter 2022 financial results for its operating subsidiary, SGHC Limited.

Neal Menashe, CEO of Super Group, commented: “The current macro environment may provide near term headwinds but Super Group’s balance sheet remains strong and our business remains fundamentally sound.” Mr. Menashe continued, “By investing in our global business, we continue to focus on organic and strategic growth opportunities in pursuit of long-term sustainable profits.”

Alinda van Wyk, CFO of Super Group stated, “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.”

Financial Highlights

  • Revenue decreased by 10% to €320.8 million for second quarter of 2022 from €355.2 million over the same period in the prior year primarily as a result of a decline in online casino net gaming revenue and brand license fee income, partially offset by an increase in sports betting net gaming revenue. The decrease in casino net gaming revenue was driven by the impact of inflationary factors on disposable income. The prior year quarter casino net gaming revenue also included a positive impact from the global shutdowns during the COVID pandemic. Brand license fee income declined due to renegotiated contract terms. Sports betting net gaming revenue increased due to growth in Africa and Asia-Pacific regions.
  • Profit after tax for the second quarter of 2022 was €298.6 million compared to a profit of €63.9million in the same period of the prior year. Profit for the second quarter of 2022 was positively impacted by non-cash adjustments related to the business combination and the listing on January 27, 2022 as follows:
    • €219.3 million for fair value gains of earnout liabilities; and
    • €64.0 million of fair value gains of warrant liabilities.
  • EBITDA, a non-GAAP measure, increased to €319.3 million in the second quarter of 2022 compared to €91.4 million in the same period from the prior year.
  • Adjusted EBITDA, which excludes transaction costs, share listing expenses, changes in valuations of warrants and earnout liabilities and associated foreign exchange movements, gains on derivative contracts and bargain purchases, decreased 30% to €63.6 million compared to €90.8 million in the same period from the prior year.
  • Monthly Average Customers for the quarter increased 3% to 2.7 million during the second quarter of 2022 from 2.6 million in the second quarter of 2021.
  • Cash and cash equivalents was €220.0 million at June 30, 2022 and €293.8 million at December 31, 2021. The decrease was primarily the result of cash used to redeem shares in connection with closing the business combination, offset in part by cash released from SEAC’s trust account to Super Group upon the closing.
  • During the second quarter of 2022, approximately 6.7 million Restricted Stock Units were granted across the employee base and will vest in equal tranches over the next three years on December 31, 2022, 2023 and 2024.

Net Gaming Revenue by Geographical Region for the Three Months Ended June 30:

 

2022

2022

2022

€ '000s

€ '000s

€ '000s

Betway

Spin

Total

    Africa and Middle East

62,914

                660

63,574

Asia-Pacific

50,756

26,632

77,388

Europe

28,516

1,993

30,509

North America

32,616

109,513

142,129

South/Latin America

3,893

3,323

7,216

178,695

142,121

320,816

    % % %         Africa and Middle East

35%

0%

20%

Asia-Pacific

28%

19%

24%

Europe

16%

1%

10%

North America

19%

78%

44%

South/Latin America

2%

2%

2%

2021

2021

2021

€ '000s

€ '000s

€ '000s

Betway

Spin

Total

    Africa and Middle East

52,940

1,350

54,290

Asia-Pacific

57,047

22,741

79,788

Europe

35,013

3,870

38,883

North America

36,692

136,346

173,038

South/Latin America

4,014

5,186

9,200

185,706

169,493

355,199

   

%

%

%

        Africa and Middle East

29%

1%

15%

Asia-Pacific

31%

13%

22%

Europe

19%

2%

11%

North America

19%

81%

49%

South/Latin America

2%

3%

3%

Net Gaming Revenue by Geographical Region for the Six Months Ended June 30:

 

2022

2022

2022

€ '000s

€ '000s

€ '000s

Betway

Spin

Total

    Africa and Middle East

126,700

1,996

128,696

Asia-Pacific

105,410

50,620

156,030

Europe

58,708

4,520

63,228

North America

67,679

225,498

293,177

South/Latin America

7,178

6,986

14,164

365,675

289,620

655,295

   

%

%

%

        Africa and Middle East

35%

1%

20%

Asia-Pacific

29%

17%

24%

Europe

16%

2%

10%

North America

18%

78%

44%

South/Latin America

2%

2%

2%

2021

2021

2021

€ '000s

€ '000s

€ '000s

Betway

Spin

Total

    Africa and Middle East

87,521

3,269

90,790

Asia-Pacific

111,469

45,436

156,905

Europe

70,014

12,018

82,032

North America

67,246

255,347

322,593

South/Latin America

6,250

8,440

14,690

342,500

324,510

667,010

   

%

%

%

        Africa and Middle East

26%

1%

14%

Asia-Pacific

33%

14%

24%

Europe

20%

4%

12%

North America

19%

78%

48%

South/Latin America

2%

3%

2%

Net Gaming Revenue by Product for the Three Months Ended June 30:

   

Betway

Spin

Total

2022

2022

2022

€ '000s

€ '000s

€ '000s

  Online casino1

62,139

142,174

204,313

Sports betting1

110,740

(53)

110,687

Brand licensing2

5,766

-

5,766

Other3

50

-

50

Total Group revenue

178,695

142,121

320,816

   

Betway

Spin

Total

2021

2021

2021

€ '000s

€ '000s

€ '000s

  Online casino1

63,202

168,921

232,123

Sports betting1

104,626

572

105,198

Brand licensing2

17,482

-

17,482

Other3

396

-

396

Total Group revenue

185,706

169,493

355,199

   

Net Gaming Revenue by Product for the Six Months Ended June 30:

   

Betway

Spin

Total

2022

2022

2022

€ '000s

€ '000s

€ '000s

  Online casino1

119,595

289,220

408,815

Sports betting1

219,777

400

220,177

Brand licensing2

25,656

-

25,656

Other3

647

-

647

Total Group revenue

365,675

289,620

655,295

   

Betway

Spin

Total

2021

2021

2021

€ '000s

€ '000s

€ '000s

  Online casino1

123,630

322,290

445,920

Sports betting1

184,235

939

185,174

Brand licensing2

34,635

136

34,771

Other3

-

1,145

1,145

Total Group revenue

342,500

324,510

667,010

1Sports betting and online casino revenues are not within the scope of IFRS 15 'Revenue from Contracts with Customers' and are treated as derivatives under IFRS 9 'Financial Instruments'. 2 Brand licensing revenues are within the scope of IFRS 15 'Revenue from Contracts with Customers'. 3 Other relates to rebates received from external processors.

Reorganization Timeline

Over the last three years, the business conducted a restructuring by combining existing, stand-alone companies into the newly formed Super Group.

SGHC Limited was formed on July 6, 2020.

The following transactions took place during 2021 and 2022 as part of the reorganization:

  • January 11, 2021 - Raging River Trading was deemed to have been acquired.
  • April 9, 2021 - Webhost, Partner Media and Buffalo Partners were acquired.
  • April 14, 2021 - DigiProc Consolidated was acquired.
  • April 16, 2021 – Digiprocessing (Mauritius) was acquired.
  • April 19, 2021 - Raichu Investments was acquired.
  • September 2, 2021 - SGHC purchased 100% of the outstanding shares of Smart Business Solutions S.A.
  • December 1, 2021 - SGHC purchased 100% of the outstanding shares in Haber Investments, and Red Interactive.
  • January 27, 2022 - Business combination with SEAC.

Non-GAAP Financial Information

This press release includes non-GAAP financial information not presented in accordance with the International Financial Reporting Standards (“IFRS”).

EBITDA and Adjusted EBITDA are non-GAAP company-specific performance measures that Super Group uses to supplement the Company’s results presented in accordance with IFRS. EBITDA is defined as profit before depreciation, amortization, financial income, financial expense and income tax expense/credit. Adjusted EBITDA is defined as EBITDA less gain on derivative contracts and gain on bargain purchase plus transaction costs, share listing expense, fair value adjustments on warrant liabilities and earnout liabilities and associated foreign exchange movements, and the expense for a once off award of Restricted Stock Units.

Super Group believes that these non-GAAP measures are useful in evaluating the Company’s operating performance as they are similar to measures reported by the Company’s public competitors and are regularly used by securities analysts, institutional investors and other interested parties in analyzing operating performance and prospects.

Management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with IFRS. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses that are required by IFRS to be recorded in Super Group’s financial statements. In order to compensate for these limitations, management presents non-GAAP financial measures together with IFRS results. Non-GAAP measures should be considered in addition to results and guidance prepared in accordance with IFRS, but should not be considered a substitute for, or superior to, IFRS results.

Reconciliation tables of the most comparable IFRS financial measure to the non-GAAP financial measures used in this press release are included below. Super Group urges investors to review the reconciliation and not to rely on any single financial measure to evaluate its business. In addition, other companies, including companies in our industry, may calculate similarly named non-GAAP measures differently than we do, which limits their usefulness in comparing our financial results with theirs.

Reconciliation of Profit to Adjusted EBITDA for:     Three Months Ended June 30, Six Months Ended June 30,  

2022

2021

 

2022

2021

€ '000s

€ '000s

 

€ '000s

€ '000s

    Profit for the period

298,561

63,912

135,337

102,487

Income tax expense

5,623

3,091

14,582

6,011

Finance income

(352)

(350)

(665)

(688)

Finance expense

314

2,876

663

5,755

Depreciation and amortization expense

15,175

21,873

31,169

41,981

EBITDA

319,321

91,402

181,086

155,546

Transaction fees

207

-

21,611

-

Gain on derivative contracts

-

-

(1,712)

-

Share based payment expense

-

-

126,252

-

Foreign exchange loss on revaluation of warrants and earnouts

24,029

-

24,029

-

Change in fair value of warrant liability

(63,988)

-

(34,614)

-

Change in fair value of earnout liability

(219,321)

-

(194,936)

-

RSU expense

3,376

-

3,376

-

Gain on bargain purchase

-

(614)

-

(10,661)

Adjusted EBITDA

63,624

90,788

125,092

144,885

Webcast Details

The Company will host a webcast at 8:30 a.m. ET today to discuss the second quarter 2022 financial results. For ease of year-over-year comparison and analysis the Company may discuss pro-forma consolidated results, including Adjusted EBITDA, which pro-forma results are included in the Q2 2022 Earnings Review presentation posted on Investor Relations section of SGHC.com.

Participants may access the live webcast and supplemental earnings presentation on the events & presentations page of the Super Group Investor Relations website at: https://investors.sghc.com/events-and-presentations/default.aspx.

About Super Group (SGHC) Limited

Super Group (SGHC) Limited is the holding company for leading global online sports betting and gaming businesses: Betway, a premier online sports betting brand, and Spin, a multi-brand online casino offering. The group is licensed in multiple jurisdictions, with leading positions in key markets throughout Europe, the Americas and Africa. The group’s sports betting and online gaming offerings are underpinned by its scale and leading technology, enabling fast and effective entry into new markets. Its proprietary marketing and data analytics engine empowers it to responsibly provide a unique and personalized customer experience. For more information, visit www.sghc.com.

Forward-Looking Statements

Certain statements made in this press release are “forward looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995.

These forward-looking statements include, but are not limited to, expectations and timing related to market entries and expansion, projections of market opportunity, growth and profitability expected growth of Super Group’s customer base, expansion into new markets.

These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “pipeline,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: (i) the ability to implement business plans, forecasts and other expectations, and identify and realize additional opportunities; (ii) the ability to maintain the listing of Super Group’s securities on a national securities exchange; (iii) changes in the competitive and regulated industries in which Super Group operates; (iv) variations in operating performance across competitors; (v) changes in laws and regulations affecting Super Group’s business; (vi) Super Group’s inability to meet or exceed its financial projections; (vii) changes in general economic conditions, including as a result of the COVID-19 pandemic; (viii) changes in domestic and foreign business, market, financial, political and legal conditions; (ix) future global, regional or local economic and market conditions affecting the sports betting and gaming industry; (x) changes in existing laws and regulations, or their interpretation or enforcement, or the regulatory climate with respect to the sports betting and gaming industry; (xi) the ability of Super Group’s customers to deposit funds in order to participate in Super Group’s gaming products; (xii) compliance with regulatory requirements in a particular regulated jurisdiction, or Super Group’s ability to successfully obtain a license or permit applied for in a particular regulated jurisdiction, or maintain, renew or expand existing licenses; (xiii) the technological solutions Super Group has in place to block customers in certain jurisdictions, including jurisdictions where Super Group’s business is illegal, or which are sanctioned by countries in which Super Group operates from accessing its offerings; (xiv) Super Group’s ability to restrict and manage betting limits at the individual customer level based on individual customer profiles and risk level to the enterprise; (xv) the ability by Super Group’s key executives, certain employees or other individuals related to the business, including significant shareholders, to obtain the necessary licenses or comply with individual regulatory obligations in certain jurisdictions; (xvi) protection or enforcement of Super Group’s intellectual property rights, the confidentiality of its trade secrets and confidential information, or the costs involved in protecting or enforcing Super Group’s intellectual property rights and confidential information; (xvii) compliance with applicable data protection and privacy laws in Super Group’s collection, storage and use, including sharing and international transfers, of personal data; (xviii) failures, errors, defects or disruptions in Super Group’s information technology and other systems and platforms; (xix) Super Group’s ability to develop new products, services, and solutions, bring them to market in a timely manner, and make enhancements to its platform; (xx) Super Group’s ability to maintain and grow its market share, including its ability to enter new markets and acquire and retain paying customers; (xxi) the success, including win or hold rates, of existing and future online betting and gaming products; (xxii) competition within the broader entertainment industry; (xxiii) Super Group’s reliance on strategic relationships with land based casinos, sports teams, event planners, local licensing partners and advertisers; (xxiv) events or media coverage relating to, or the popularity of, online betting and gaming industry; (xxv) trading, liability management and pricing risk related to Super Group’s participation in the sports betting and gaming industry; (xxvi) accessibility to the services of banks, credit card issuers and payment processing services providers due to the nature of Super Group’s business; (xxvii) the regulatory approvals related to proposed acquisitions and the integration of the acquired businesses; and (xxviii) other risks and uncertainties indicated from time to time for Super Group including those under the heading “Risk Factors” in our Annual Report on Form 20-F filed with the SEC on April 20, 2022, and in Super Group’s other filings with the SEC. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in other documents filed or that may be filed by Super Group from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Super Group assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Super Group does not give any assurance that it will achieve its expectations.

Super Group (SGHC) Limited Consolidated Statements of Profit or Loss and Other Comprehensive Incomefor the periods ended June 30, 2022 and June 30, 2021     Three Months Ended June 30, Six Months Ended June 30,  

2022

2021

2022

2021

€ '000s

€ '000s

€ '000s

€ '000s

  Revenue

320,816

355,199

655,295

667,010

Direct and Marketing Expenses

(225,700)

(233,703)

(466,417)

(448,062)

General and Administration Expenses

(37,754)

(35,442)

(72,455)

(79,060)

Other Operating Income

2,886

4,734

5,293

4,997

Transaction fees

(207)

-

(21,611)

-

Depreciation and Amortization Expense

(15,175)

(21,873)

(31,169)

(41,981)

Profit from Operations

44,866

68,915

68,936

102,904

Finance Income

352

350

665

688

Finance Expense

(314)

(2,876)

(663)

(5,755)

Gain on derivative contracts

-

-

1,712

-

Fx on revaluation of warrants and earnouts

(24,029)

-

(24,029)

-

Share based payment expense

-

-

(126,252)

-

Change in fair value of warrant liability

63,988

-

34,614

-

Change in fair value of earnout liability

219,321

-

194,936

-

Gain on bargain purchase

-

614

-

10,661

Profit Before Taxation

304,184

67,003

149,919

108,498

Income Tax Expense

(5,623)

(3,091)

(14,582)

(6,011)

Profit for the period

298,561

63,912

135,337

102,487

  Profit for the period attributable to owners of the parent

298,561

63,912

135,337

102,487

Other comprehensive (loss)/income Items that may be reclassified subsequently to profit or loss Foreign currency translation

(3,492)

(697)

(2,375)

(171)

Other comprehensive (loss)/income for the period

(3,492)

(697)

(2,375)

(171)

  Total comprehensive loss for the period attributable to owners of the parent

295,069

63,215

132,962

102,316

  Weighted average shares outstanding, basic

490,197,468

460,476,661

489,266,292

462,979,116

Earnings per share, basic

0.60

0.14

0.27

0.22

 Super Group (SGHC) Limited   Consolidated Statements of Financial Positionas at June 30, 2022 and December 31, 2021     

2022

 

2021

June

 

December

€ '000s

 

€ '000s

  ASSETS Non-current assets Goodwill

24,982

25,023

Intangible assets

159,715

172,954

Property, plant and equipment

12,926

12,498

Right-of-use assets

13,142

14,541

Deferred tax assets

30,859

24,108

Regulatory deposits

9,132

8,594

Loans receivable NC

11,179

25,516

Financial asset

1,687

1,686

263,622

284,920

  Current assets Trade and other receivables

156,618

169,252

Income tax receivables

33,923

35,806

Restricted cash

109,365

60,296

Cash and cash equivalents

220,020

293,798

519,926

559,152

TOTAL ASSETS

783,548

844,072

  LIABILITIES Non-current liabilities Lease liabilities NC

9,939

10,896

Interest-bearing loans and borrowings NC

-

764

Deferred tax liability

8,666

9,248

18,605

20,908

  Current liabilities Warrant Liability

17,418

-

Earnout Liability

73,798

-

Lease liabilities

4,918

5,353

Deferred consideration

-

13,200

Interest-bearing loans and borrowings_C

1,233

3,008

Trade and other payables

124,678

147,353

Customer liabilities

49,498

51,959

Provisions

48,162

47,715

Income tax payables

42,134

40,524

361,839

309,112

TOTAL LIABILITIES

380,444

330,020

  EQUITY Issued capital

273,435

269,338

Earnout reserve

(249,955)

-

Foreign exchange reserve

(4,469)

(2,094)

Accumulated profit

384,093

246,808

403,104

514,052

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

783,548

844,072

SGHC LimitedConsolidated Statements of Cash Flowsfor the Six months ended June 30, 2022 and June 30, 2021    

2022

2021

€ '000s

€ '000s

Cash flows from operating activities Profit for the period

135,337

102,487

Add back: Income tax expense

14,582

6,011

Profit on disposal of assets

-

(3,093)

Change in fair value of warrant liability

(34,614)

-

Change in fair value of earnout liability

(194,936)

-

Fx on revaluation of warrants and earnouts

24,029

-

Share based payment expense

126,252

-

Depreciation of property, plant and equipment

2,704

1,398

RSU expense

3,376

-

Gain on bargain purchase

-

(10,661)

Amortization of right-of-use assets

2,379

1,223

Amortization of intangible assets

26,087

39,360

Increase in provisions

257

1,895

Finance income

(665)

(688)

Finance expense

473

5,755

Unrealized foreign currency gain

(11,857)

(526)

Changes in working capital: Decrease in trade and other receivables

12,825

29,210

Decrease in trade and other payables

(46,028)

(26,733)

Increase in customer liabilities

(2,461)

3,335

Change in restricted cash

(7,621)

(9,087)

Cash from operating activities

50,119

139,886

Dividends tax paid

(5,569)

-

Corporation tax rebates received

1,846

-

Corporation tax paid

(13,781)

(9,746)

Net cash flows from operating activities

32,615

130,140

  Cash flows from investing activities Cash received in interest

519

464

Acquisition/disposals of intangible assets

(12,762)

-

Acquisition of property, plant and equipment

(2,740)

(1,334)

Acquisition of businesses, net of cash acquired

-

5,151

Cash used in financial assets

-

(848)

Restricted cash guarantee

(41,448)

-

Receipts from loans receivable

18,485

-

Issuance of loans receivable

(3,749)

(25)

Receipt of repayment of loans and borrowings

-

34,449

Cash used in regulatory deposits

(538)

(5,650)

Net cash flows from/(used in) from investing activities

(42,233)

32,207

Cash flows from/(used in) financing activities Shares repurchased

(222,345)

(10,731)

Proceeds from shares issued net of transaction costs

(1,487)

-

Cash paid for deferred consideration 

(13,200)

(2,089)

Proceeds from shares issued

172,119

3,570

Repayment of  interest-bearing loans and borrowings

(4,761)

(16,815)

Repayment of lease liabilities - interest

(468)

(205)

Repayment of lease liabilities - principal

(2,573)

(2,566)

Net cash flows used in financing activities

(72,715)

(28,836)

(Decrease)/increase in cash and cash equivalents

(82,333)

133,511

Cash and cash equivalents at beginning of the period

293,798

138,540

Effects of exchange rate fluctuations on cash held

8,555

(225)

Cash and cash equivalents at end of the period

220,020

271,826

 

Investors: investors@sghc.com Media: media@sghc.com

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