The parent firm of Betway and Spin, known as Super Group, reported record earnings for the third quarter of 2023. However, its US operations continued to negatively impact profitability.

Revenue for the third quarter rose by 16% compared to the same period last year, reaching €356.9 million ($380.6 million/£310.4 million). This increase was fueled by growth in Africa and the Middle East, Europe, and North America, the company stated. When adjusted for currency fluctuations, revenue increased by 27% to €390.8 million.

North America remains its largest market, contributing 38% of revenue. However, this represents a decrease from 40% in the second quarter of 2022. In dollar terms, North American revenue grew by 9% year-over-year to €134 million, despite a slight downturn in its Spin division. Africa and the Middle East now account for 28% of the business, up from 23% a year prior.

However, these gains were partially offset by declines in South America/Latin America and Asia Pacific markets.

Online casino remains Super Group’s largest segment, accounting for 62% of total revenue. Online casino revenue increased by 12% year-over-year to €219 million.

Super Group’s global monthly active users increased by 44% to 4 million during the period, up from 2.7 million in the third quarter of 2022.

The head honcho of Super Group, Neil Menash, declared that the company had another strong period, with record income in the third quarter, fueled by record customer counts and deposits. He expressed optimism about the company’s robust customer engagement and ongoing expansion of its global betting operations.

Despite the 16% income growth, Super Group’s operating expenses also climbed considerably, with marketing costs continuing to be a burden. Direct and marketing expenses rose 19% year-over-year to $270.8 million this quarter. As a result, this portion of spending made up 76% of Super Group’s total income, compared to 74% in the second quarter of 2022.

Operating EBITDA for the third quarter of 2023 was €53.8 million, a year-over-year increase of 8%. The third quarter of 2023 metrics included €64.1 million outside the United States and a €10.3 million loss in the United States.

Profit for the period was €10.6 million, including a €14.2 million non-cash charge linked to the acquisition of the digital gaming company (DGC) in January 2023. The charge was due to an increase in the fair value of the liability associated with the granting of call options to third parties to subscribe to the DGC B2B unit. The profit figure was considerably lower than the third quarter of 2023, although the previous period included the positive impact of a €22 million non-cash adjustment.

Super Group’s chief financial officer, Arlinda van Wyk, stated that the company will continue to prioritize investments in future growth and further realize cost efficiencies.

While facing some challenges this quarter, we are maintaining our predictions, assuming profit margins will stabilize for the rest of the year.

Super Group’s income has surpassed the €1 billion threshold. The company’s income for the initial nine months of the year surpassed €1 billion, reaching €1.08 billion, a 11% rise compared to the same period in 2022. North American income decreased by 3% year-on-year to $401.3 million.

Operational and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for 2023 are comparable to 2023 levels. Due to certain one-time expenses, such as Super Group’s costs related to its listing on the New York Stock Exchange in 2022, comparisons of EBITDA and profitability do not offer much insightful data.

In October 2023, Super Group declared that it had stopped providing any services to the Indian market due to modifications in India’s Goods and Services Tax. However, the company stated that the withdrawal would not impact its financial projections for the year.

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