Revenue for the period shrank by 10% year-on-year, from €355.2m ($367.3m) to €320.8m. Super Group attributes this poor result to a decline in both online casino net gaming revenue, exacerbated by inflation and brand licence fee income due to renegotiated contracts.
The result was offset by improved performance for sports betting net gaming revenue, with growth reported in the Africa and Asia-Pacific regions.
Super Group’s result is at odds when compared to competitors; several online suppliers have enjoyed growth during Q2, with Bragg Gaming Group reporting a 34% revenue increase, while other operators like DraftKings saw revenue rise 57%, despite also reporting losses.
Super Group’s EBITDA grew from €91.4m to €319.3m, while adjusted EBITDA stood at €63.6m, a fall of 30%.
Profit after tax totalled €298.6m, compared to €63.9m. Q2 profit was positively affected by non-cash adjustments related to the business combination and listing on 27 January, including €219.3m for fair value gains of earnout liabilities and €64m of fair value gains of warrant liabilities.
Super Group CEO Neal Menashe said: “The current macro environment may provide near-term headwinds but Super Group’s balance sheet remains strong and our business remains fundamentally sound. “By investing in our global business, we continue to focus on organic and strategic growth opportunities in pursuit of long-term sustainable profits.”Cash and cash equivalents stood at €220m as of 30 June, a fall from the €293.8m total on 31 December 2021. This drop can be attributed to cash being used to redeem shares in connection with closing the business combination.
Super Group CFO Alinda van Wyk added: “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.”
The number of monthly average customers rose to 2.7 million for the period, compared to the previous total of 2.6 million.
