- Earnings call transcript Q3 2022

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Operator

Good morning and welcome to Super Group’s Third Quarter of 2022 Earnings Conference Call.

Following management’s prepared remarks; we will open the call for a question-and-answer session. I would now like to turn the call over to Lisa Kampf, Vice President of Investor Relations.

Lisa Kampf

Good morning, everyone and thank you for joining our call today to discuss Super Group’s results for the third quarter of 2022.

During this call, we may make comments of a forward-looking nature that are subject to risks, uncertainties and other factors discussed further in our SEC filings that could cause our actual results to differ materially from our historical results or from our forecast. to statements responsibility required than no law. by assume update other forward-looking as We

call, refer page provided addition we financial today’s with remarks, of on After Additionally the may Officer. in prepared of to for will website, Menashe, Chief non-GAAP a for call will accordance measures financial IR not performance Neal. measures. We to to and and during financial and are reconciliation and website. and we Executive our in comparable of Officer. press release had the suggest non-GAAP the our financial to for call President available GAAP. am substitute the the measures over a investors call turn Officer the Wyk, figures the be These Today, on GAAP non-GAAP certain refer financial Group’s measures to supplemental to in of Investor by joined all Chief which that presentation Relations Financial earlier joined We the Hasson, today quarter. up the Chief Super prepared would will Alinda to like I most Neal referred questions to now, that Richard issued I information Van and be this we also section information the open by And Operating includes additional posted

Neal Menashe

Good Lisa. today. you, morning, Thank us you everyone thank joining and for

our was entertained longer the month average Total €XX on of Jumpman EBITDA up quarter year including the from this September the Alinda X.X expectations, meaning Canada, since Overall, demonstrate to third million with engagement detail Performance benefits million. we the results Betway X, profitable On our we million like-for-like in basis, historic of the per Canada made then this the Gaming, discuss XXXX positioning which for financial a we Ontario I €XXX regulated and platforms. Ontario-specific to quarter. In prior has and progress remains revenue and and Ontario’s the greater quarter. X% term. quarter, excavation have the results customers first and us. in environment. for acquired elaborate of Spin in on global of perform on moment. including we Our will successfully with a line company for the was customers continues operational footprint will our been new transitioned not

states X. offering our quarter ways total in we taking of technology; in to the in of next want in one, Both our be recently African expected in the tech, Our brands; number investment eighth is on DGC, global regulated expanding and this proprietary through launching to to to up in invest the in first States, our talk three, two, now I the through platform Betway’s DGC to launch close United acquisition we In with Louisiana hope launched at business continues and states market currently Ohio year. our operate scale on M&A. investment will we continent. investment X our live the using technology product about three Betway during on January. business:

platform Firstly, customer engagement line the enhancements experience improving with and who focused remain optimize online-only our on to customer base. in technology and business, we we with global ongoing order are in to

requirements sports until fairly can with March of resources increase the we book amount a global explore to our of a we Apricot, Apricot product. of with possibility our the dedicated entered into these be down a Consistent for Africa, demand technology our have result, Apricot tech provided the sports to are book have with have time. €XX for increased discussion a the platform. drawn requirements, to the To dedicated have cover over Betway’s funding to resources, provider of facility spending, which As high we and and the major XXXX Betway to million, outside arrangement full started ownership

outcome. While fall the early eventual all data of these talks have they on come the or down would

have brand enjoy Next, Toronto around and with vetting Betway Spin’s Leafs best White’s and Jack Toronto full known live reinforce first brand world. October. went in Spin the to three quarter the Maple the the petite during Raptors sponsorship the we and

TXX the quarter has marketing in On in to Cup the audiences fourth leverage World of crisis QX, Cup, Betway side, ended the the FIFA which last the which as off on weekend planned the following Sunday. calendar Cricket picked World international and both kicks

through investing growth our expect in M&A. we way third businesses The

previously the a have majority business Gaming we transaction. and Jumpman in a stake profitable acquired cash UK-focused online casino announced, As during we quarter, third all

see addition business to the on the the also its proprietary this in the more of recreational Jumpman market, that technology other with we for casino a into we focus are about online future of platform. given opportunity UK In expansion markets excited segment

reduce to the after, under sponsor Super earn-out. exchange The to registered publicly this solicitation potential warrants. weeks successfully impact the cancel launched we receive of contain of we exchange shares to simplify and of just the their SPAC to agreements warrants holders the this also is two warrants in constants to the shareholders and the structure and an dilutive now and completed pre-merger amend the are the large. outstanding after capital purpose private And of capital exchanger Group and will offer rights Turning ago, the possibly structure, while seeking earn-outs. are warrant cancel held our SEC If

expect also in revalue less longer liabilities have the each quarter. free no to results earn-out quarterly eliminating our warrants we result since increase those volatility in outstanding that and our We sites and will overall float

fairly the We fourth and the quarter average third in quarter this with our August. far are up picked numbers from the progress monthly so made with pleased we during of are year, customer

exciting now turn opportunity and strong fundamentals gaming with global, the Group only customers, During even betting and a ahead. to million results. them. we I’ll online a over X.X Gaming for in call record of is X.X reached October, customers our of daily discussion recorded continual for customers excess Jumpman excluding business detailed online financial Alinda sports and future for growth, million Super financial

Alinda Van Wyk

EBITDA million. continue liabilities, revenue EBITDA, Taking fair warrants movements which our total non-recurring Thank income you, highlights referencing for XXXX associated X% operational adjustments presentation website. reference quarter, financial foreign Neal. quarter compared on our the €XXX adjusted With adjusted the quarter, EBITDA, year in our brand to to for Today, posted and to will on of third account, numbers third and exchange our items. revenue the by In provide the €XXX to license into the earn-out was is unrealized we value included the prior and million. increased net I present

third the achieved €XX of For operational we quarter, EBITDA million.

Looking growth customer football and very markets. segment, our in soccer at by APAC, even by in transition sports quarter, Africa driven the to by sports the unforeseen book Europe, in results Overall, calendar. performed book English with or overall in increased primarily XX%, excluding the matches this in by revenue million by strong business €XX Canada, Ontario, bolstered regulated Betway’s retention acquisition and driven growth modest decline well Ontario

in on X UK, growth by into decline offset in in as net Canadian or APAC Canada, driven declines which the casino, These of X%. revenue The was to on excluding Jumpman September transitioning positive by short-term some €X were especially Africa. pressures, and Ontario Spin, and Gaming, in disruptions pressures markets, overall Despite decreased Ontario. in inflationary included million customers competitive by from partially the momentum market. the regulated growth Moving

last As business revenue year. of XX% it compared relates margin, Betway XX% net influence EBITDA to with to a downward had mix increasing to

that segment Betway into the levels and back cost public know, was in wanted XX% €XX to profit than million has for The were to you As staff margin experienced Spin. we push costs margin a XXXX. deeper saving Diving company to remain be. cost on not ones due We is where in increased EBITDA General the previous technology. expenses. and strategies administrative focused quarter and increased higher lower in cost, margin key to similar quarters. drivers investment growth higher by

marketing a it of in net saw cost, This to we million. decline and spend. investment €X in marketing resulted a As decrease brand in an increased relates variable

our conclusion, full the between no September, balance €XXX guidance EBITDA expectations. are our financial and of unrestricted remained our to million. million revenue Neal remarks. year equivalents total XXXX we strong between million for €X.XX of will and and in operational €XXX billion reaffirming now for sheet final third at €XXX In with quarter are Thank Looking I with call And with €X.XX at cash and back of billion you. end line his the position, debt. results our cash the turn

Neal Menashe

Super with Thank financially remained you, Alinda. Group prospects. solid growth summary, In strong

other focused open now technology opportunities continue to our our the growth operate on and scale. and and turn in as explore provide well the Operator? marketing up to I as more remain call will investing questions. with optimize ways footprint operator us the We profitability. over to call global efficiently long-term the leverage that to to We

Operator

Thank go [Operator Jed our first Oppenheimer. question And you. Please Kelly ahead. from of comes Instructions]

Jed Kelly

great. question. for Hey, Thanks my taking

Just may. a couple I if

looks we Just more wide range outcomes a revenue it’s XQ it are the guidance, through like pretty the first halfway on and of than quarter.

then update can provide just visibility economy then I an with of have around thinking an can So on we the you update macro Thanks. into just a you And how pressures? XXXX XQ be us should sort on and give the follow-up.

Alinda Van Wyk

your question. for Jed. Thanks Thanks,

to four. during X.X so fourth World is casino As numbers some about though like is reference a Even made now fluctuating result. feel October usually excited increased good which we our the Cup a in book, very customers the the Neal for promising is some just are in all good customer the well. strong very month aware, usually to had sports ongoing we far, million quarter as especially optimistic, quarter are we about that results

volatilities that line in some know, we have and engaging customer we as on and know the we especially you have a keep already, results in very seen volatilities some through Although of around base, coming customers. all power those but strong is the November our there we sports

Jed Kelly

Got it.

And footing the – are North regulations. looks growth The Okay. in on Ontario seems just the decline casino, was less. around of your some you impact, it was it like America, North the the just America – growth like then getting

anything kind the And just talk macro? can Ontario an in on and seeing So, of us outlook Canada? are Thanks. give you can then you about in you

Neal Menashe

Neal. It’s Thanks. Yes.

regulated the competitive of early operate no then we have signs our obviously all platforms. Canada obviously excess we outside positive But short-term, with lines of historic.com market – switching in high activated we predictions and in is and has its engage a Obviously, And on So, are seen percentage have there Canada, continue in, has a guidance. obviously cost live exception. respect To of our and customers included benefits. the the with to keep platform. got Ontario been our pressures are platform of but and the Ontario to Betway and new long-term the on markets obviously the now no

all enlighten We have working we our our And customers got marketing. to uptick. and constantly are

Jed Kelly

Thank you.

Operator

from of comes Please question Canaccord. Michael next The go Graham ahead.

Michael Graham

had I lot. a a couple. Thanks Hey.

The on your on that global first stack U.S. one is decent Can up a been Virginia mentioned just – you some running you and period, you of for Arizona have the and states tech in market. now. the

Just be follow-up. tech. you have third-party on Thanks. just curves? there would others how a are relative about performance curious that I characterize growth to states then of trending talk still And are how on sort maybe those – And on

Richard Hasson

a something out, are Thanks them do pointed look point, much Michael. point, But on running for forward we they we into the days in are and DGC, that into we At dive a mentioned, of Neal part to which as more a the as will into as this technology. Global early so of for states correctly stuck group business. that you coming it’s DGC the that At still group. deeper it’s growth. And obviously the Richard once able become two be getting January. forecast business Betway here, plan, to anticipating

Michael Graham

Thank Okay. picture then And for that. of you question. a big sort

the a see of impact quarter, am think you have you regulatory when outperformed sort You for because the high of I you you the wondering or just different? being the – do setup on changes. things at year, do landscape see your have had similar, next declines business you about level, in regulatory being and some revenue

Neal Menashe

many countries for As that’s a our been last decades. two business operate in so globe, normal, the across the we

those you have of each know, And teams it’s after countries. got as of each navigating basically So, looking we countries. those

So, businesses with each own right. its own one its has

the is what software, the it’s that’s So, getting the we returns right. it navigating And marketing it’s game, the and tech about. what that’s do. this But right, business

Michael Graham

Okay. Thank you.

Operator

question comes Needham. next Bernie Our ahead. from of Please McTernan go

Bernie McTernan

past any is of we October, the been consistent start, million. pretty if Thank million, To questions. in $X.X million love there terms Great. for to $X.X in number see color on over the MAUs added you $X.X would year taking that have the

to October? driving So, was deeper any strong what of dive in in way the results terms

Neal Menashe

engagement customer has them these aim that quality it. our keep across getting are sports And a all bringing events lots to dealing the obviously then sports. keep back obviously, with So, that happened of these the then it’s high increasing casino customers. and basically, so name it’s that about the October, on operational is in And that margins platforms, been obviously increasing and our with respected. and about and little – our bit it’s reengaged into game And and

Bernie McTernan

terms drivers guidance the guys hit fourth maybe then on quarter, the Understood. a is end? what the for would range to first cause you end in question maybe to And or follow-up the just versus low the there middle high versus to of way about a of think the

Alinda Van Wyk

I Bernie. not feel it book, of results will of and plan of that’s you the as the all easy I that – said to being strong. by World And the should Like the the comfortable Cup. is Cup mean remain in the it’s you, it’s the have in end casino – we finished this just matches towards obviously World Thank vulnerability the have for the of – itself realized quarter. we now a end volatile. And so couple speak entire But sports

our results control. You fluctuate never know beyond the without

customers we and So, we customer our keep the engaging make to sure is that luckily base just on strong. have

So, the the in it marginalized volatility out results.

Bernie McTernan

are Jumpman Got then it. thoughts your to how size lastly, would asset you the to able for just get rationale of the we love the deal. transaction, And then is? revenue just big generator, on And a that if

Richard Hasson

Richard So, hi here. Bernie,

very years. our technology. while over So, It’s is existing platform the it into the They transaction, of are segments And UK opportunity we it’s more a when about great a runs the many focused excited it appeal expand business, helping them much proprietary a to us and for rationale different Jumpman, built market for to last segments additional markets. the customers. recreational an

we of gaming did about size around at before net they the that million terms disclosed In of that of be And something the in September, €X this revenue. month will revenue, point, of transaction.

Bernie McTernan

Got taking it. for questions. Thanks the

Operator

participation this may your for this gentlemen, today. concludes our call concludes thank and session. We and you Ladies now question-and-answer you. our And you Thank interest disconnect. and

Super Group (SGHC) 22 Nov 222022 Q3 Earnings call transcript