SGHC - Earnings call transcript Q3 2024 | Super Group (SGHC) Limited

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Operator

Mr. Milotte, you may begin.

Brett Milotte

Thank you. Good morning, everyone, and thank you for joining us today to discuss Super Group's results for the third quarter of 2024.

During this call, Super Group may make comments of a forward-looking nature that are subject to risks, uncertainties and other factors discussed further in its SEC filings that could cause its actual results to differ materially from historical results or the company's forecasts. responsibility today's forward-looking refer call, non-GAAP measures. no required other to assumes financial law. On by Super Group to statements update than certain Super Group may a are in prepared with GAAP. to These financial accordance in financial measures of measures and non-GAAP not substitute for performance addition Super provided the Super earlier issued today of available on a the to of financial measures release Group most the comparable website. press relations has investor Group's page the GAAP reconciliation non-GAAP figures in and

investors the separately to annual parts U.S. Group business its speak how results investments will and profitable Super we'll Hasson, Van Chief supplemental this Financial for Richard X how I'm Group President Super and with joined that guidance report internally turn by addition, the Officer; the in Commercial financial highlighting provided now the Neal. Wyk, during and going both has Q&A I'll Super and XXXX posted recommends And website. On over metrics Menashe, In Group the into refer call by Group Officer. And forward. aligns and Alinda on will Super be Officer. joined This cash-generative from and views Group's to the call, Super to with Neal Super Chief Group is Chief global business its presentation also Executive session, consistent

Neal Menashe

year-over-year XXXX EBITDA XX set the Third record, XXX growing Thank was quarter. quarter, welcome million. ex third to U.S. you. ex EUR and Good a revenues EUR Earnings XX% the also an was U.S. million. Call. Quarter X Quarter all-time everyone, year-over-year Super growing Group's quarter to super Total high XX% to third Adjusted a morning, a for

clearly a target. optimizing growing ahead executing efficiencies, reflected of XX% our quarter in while XX% focus our the row; margin, are marketing. second strategy that's in our on We particular markets for and These cost key efforts a well and are our successfully of realizing OpEx with

represents Casino for of XX% super quarter. business casino growth. the revenue overall Our experiencing is net

markets. growth continent rolling it of utilize our which we to brands expect Africa, key Spin markets, comes our includes of This success strategy. When as significant in our see opportunity. markets, key and expand the to We out like decades we'd multi-brand with existing highlight continued where we aligns expertise to into

quarter provides For Africa the largest revenue. second of running, portion our the

than We have for operated competitive and built in strong Africa a decade more super have a moat.

spans more markets, footprint there's and positions hold X to regulated X locally we podium in them. of come. Our And

healthy new viable will have pipeline the of that markets be months. XX in We a next

is people, expected people by reaching by billion billion Beyond grow that, to X continent X.X XXXX. the

to relationships marketing positioned with key well are purpose-built teams local our We capitalize with and dedicated fully deep growth on stakeholders. this expertise, platform,

perform We expect this growing very well in to market.

Canada. is Africa to Second

experiencing that continues strong I be across leading growth City year-over-year entire brand the sports casino. a We Jackpot to and And across are note want both country. to

our previous While in U.S. came the Canada, be and we our to U.S. EUR of estimate operation. that to plan continue X trickier. in the Africa million associated less completed EUR has growing shutdown We've our than pleased around costs million. sportsbook the I'm presence XX of proven

business in Pennsylvania. assess to New continue We and iGaming our Jersey

We are action. decisive if we KPIs, our goals, will we can't closely tracking reach and take

we profitability. in in U.S. to path continue order see said, the or able market, always we've to to As sustainable operating any be a must

what some X, seeing we are and quarter invested pleased our be green in to we to quarter be X shoots. expect We investments than less

sheet. the Moving on to balance

no XXX financial million is finished and Our in quarter debt. cash paid robust, per $X.XX the initial unrestricted we of and dividend position the after EUR having is This share with July.

is considering the performance a initiate and we the shareholders, to begin of at including In the each of year, to near next we in meantime, quarter, discuss conditions. the a our be Board cash December; subject term end quarter the our assessed plan of to are ways dividend beginning meeting of possibility return to market X.XXX first exploring our dividend the special We regular our to in an a XXXX. further intend are option to with at and before year, which may per

and Finally, strong U.S. to our the particular we a spectacular performance XX%. margin representing date, in exceed given to of EBITDA for a December, are million, normalized revising guidance XXX November sports results EUR October, ex assuming and adjusted

are capitalizing call business of kick on turn We operator to margin up pleased are long-term the Super the Operator? over look a call operating above closing open for forward XX%. momentum and super leverage seeing to for our we questions. be to year up to really in. our now target the in And over our We Group. I'll the

Operator

Instructions] [Operator comes Oppenheimer. question from first Jed of Our Kelly

Jed Kelly

Just I sort then Can following America? of can And follow-up. Latin XQ? then on they're viewing is Super just up last give talk globally, And you sports view have a results your how on comments. into trending Group about how a just you

Neal Menashe

it's Neal here. Jed, Okay.

So win, good September, the having really good. we good not those. sports when results produced so funnily which end enough, for us, was even were of and such have good third results, favorites that's telling all keep but didn't And us, yes. results, everyone, without good there. quarter a quarter for X, October obviously really had the I we've

revenue. are us So is -- the the for that, with makes of now our important XX% we sports, even for with that counteracting which very up but us casino,

Richard Hasson

to your America. question Jed, on Latin to Richard here, come

we That's where number line the know, currently Brazil all proceeding. focused we markets not a a identify In live industry of lot live. to footprint, to at, present. look are spoken earlier, in on you we go obviously current path that revenues. and with markets As we is we're at being there a we sustainable that once we profitability at yes, mentioned ensure a the on market about can are moment. across existing as our And Neal want optimizing our building currently

Jed Kelly

follow-up. a as just then And

of another dividend Can fair policy, returns M&A? your flow. strategic talk should bit a generating free just view how you you update just obviously capital there? Can we or give us cash You're about

Alinda Van Wyk

or let project; Jed, last And done returning the invest that still mentioned we but a, this cash, uses money marketing. marketing quarter That's why, special Neal a technology nothing for into also in especially there's M&A, our where X.. is sure firm it's spend. X, sports part more always other of I quarter a the for assessments bit we're considering way confirm, a time all X dividend ] supplementary of strategy spending on [ of the but will definitely and And year. being Richard maintain our on back, into quarter make just we, that Alinda the here. now to we're finalizing

Richard Hasson

the Yes. that call Jim, potential make Alinda says, for us. but, worth constantly sense mentioning there's that's nothing at opportunities on across looking strategic this markets as

Operator

question Bernie from next Needham. Our from McTernan comes

Bernard McTernan

wrong seems Great. but side the retention might of it's customers? the Maybe start: mentioned just or can what just kind have better sport so to you Neal, it gone like really detail whether cost just efficiency your strong exactly, with outcome just and seeing you on month, like way, October you're engagement

Neal Menashe

really spectacular -- yes. cetera. in revenue, all a had base, -- wasn't cetera. good. same customer it same October is in system, happened mean volumes month so our as So et customer obviously on fronts, was et October, sports our great numbers, but The we I September volumes,

the within it we're come the a focus through. efficiencies marketing, different our operating efficiencies companies on We're seeing our coming in all seeing So together.

all So well, and really also coming focus. it's together the

best becoming be countries on the are we in into country. in the markets the can't and full and every chosen we're those You operating. We've the in can that we're continents in we're on. which And we

Bernard McTernan

about thinking is year-to-date has because, I love about terms India. there. year, top there this the just then the get any excluding the reason And some still, would color growth growth guide ask to in headwinds are XX%, just And Understood. FX of line in why what for been,

start we India get think more, comping revenue shutdown, on reasons could to are year our love next pencils 'XX You're thoughts. but there I the would reported your to sharpen so why some accelerate as

Neal Menashe

Okay, okay.

again. So it's Neal

[indiscernible] remind down year. We shut, we to closed of September everyone: Just last India end

you're right. So XXX%

India, So XX%. ex up we're

Bernard McTernan

more longer-term expected. about? should how should me, a be is plus coming be we much margins of just number. there? -- then the term, kind strong that And same target than but And efficiencies margins maybe, cost the thinking Longer-term how -- of Wow, of get are okay, all longer thing X really through, XX%-plus, better just mentioned quickly we more you you for can

Alinda Van Wyk

down reported which right months the Bernie, to result Like operating drilling bottom, X Alinda is for now on that. XX% The margin. consecutive XX efficiencies over the very here. been now the definitely we've focusing good had a is we've we quarters,

on that marketing sure the it, unpacking when investment but looking into our happy that marketing there's a that, target, great during XX% now. term, comfortable return, a so we we XX% we will campaign really 'XX are -- beat now feel to every as we We're we make to we and Second are long lift really to to that XX% standard. out put to probably efficiencies

Bernard McTernan

the modeling just then reconciliation the just there's fourth of Perfect. the -- into market other release, -- shutdown market million. one Should just quick costs also in it. U.S. EUR question. great. Got also was, shutdown the just That's closure and bleed press And other And any X that what U.S. the on in lastly, any quarter? costs then color closures

Alinda Van Wyk

a obviously it -- that also but X. was based no on processor and there more of to quarter ] but -- there's X, why India. now impact in in nothing [ We'd that overall release, here. that on just for quarter last is accounted Alinda to That's spillover had we sportsbook has -- we to in is so then India the report profitability had is investment it's Bernie, closure market you just other impair, report a QX. press the happy on from see closure And been just the in closure X it nothing year's report to

Operator

comes Canaccord. question next from of Michael Graham Our

Michael Graham

improved Congrats wanted to outlook. profitability ask on I about Africa. the

if podium position about top a maybe talk you're just X in difference little in just the the live position share have could those markets Africa. of I'm And that between your the you durable is bit about other and versus you how a wondering You X in. think X X

Neal Menashe

Yes. It's Neal here.

all well sport I dedicated branding football Remember on X,XXX The or of people. Betway brand, XX years is over do the particularly the Africa, we #X going team there. particular maybe resonates a as soccer with we've football, the of in brand, basically, because cetera. et the So said, been in for

X in really, positions. countries, mean, -- all countries Zambia, Africa, I we're podium the in podium performing cetera, et really we we're well. Ghana, there, So South in the And

should, for on few a of it. exciting casino, we very others I one each aren't to of rolling performing we we but is, think, get but they us sure assess the to as a have And and as And out offer -- pipeline we well make we've where City. online come, countries got in can ones, again been most other we're as it. these we've Jackpot

in we've [ rolled approach it's it the Africa. approach Ghana, the getting it we're hold out be these and already So Group South -- going the et out for markets. And then ], double so rolling a cetera. in Betway And that's in Spin Super to it's

So it's there.

there, that -- revenue we opportunities continent. we big are coming marketing out big the We that growth with very got of see are spends comfortable We've got there. so

Michael Graham

on And maybe for then online how you on about U.S. I'd talk iGaming just color in the view more get little about just long-term U.S., casino in love thinking the you're the to a

Neal Menashe

here. Neal It's Okay.

we're It really sports. tried at. work, didn't we casino, but yes, good So

So we and New Pennsylvania. are in Jersey

are increase. We good seeing revenue

business, being our across too we've America business seeing which the not revenue the is world, profitable this easier turn change bread we able -- we sure able no to a we then chasing make casino is so profitability, butter can shoots. business, is to this profit, from for meeting. revenue stance. we it want the Again, get if be gets revenue to achieve feel And and a for And make so and what remember is to will but are we different. set good to never to have away to into that far, the that and are they far us have We we're target green so then

Operator

next Hickey comes from Benchmark The of question Mike The Company.

Michael Hickey

year Great too. of Congrats you. great Fantastic. on all quarter. to Kudos a

Michael's following there. U.S. the maybe appreciate up the Just on color on I Neal, market. question

your up considerably, well, exiting betting. losses obviously You've sports sized here,

days On is to front, early be going the Obviously mean, it's 'XX I interesting. iGaming here.

regulation ] said the thinking You of a And getting you to your about targets into sense Just in how of revenue think better in your profitability: iGaming 'XX. path [ you're U.S. change political could the potentially here, the sort that atmosphere 'XX. impact hitting and

Neal Menashe

Yes.

see And been you're we can X more path aiming in not profitability. the for revenue, right, see have to so we XXXX, from our what make point seeing of and than we we the growing, quarters, but invest last view to which has are a money grow to do it Listen. sure is

so of the which that; government new we've regulations business. right, for new basically regulations, then or overtax, new regulate if and in market black understands worse a hopefully, comes a that, seen They sees existing you and as get the created know, With just changing Republican the government they example, everyone out result, in you Germany. not Germany you

So let's goes. it's see point view, from of it our how

good. that it's so pro-business, think -- I should hopefully, be I think they're

Michael Hickey

minus 'XX? market your or in position Alberta position I Can In Looking, success guess, of here. great regulating you the share North and too. talk you've your plus about Canada, got just here in share a Canada,

Neal Menashe

Yes, okay.

-- the really, not better. it are end where the a we lessons on Canada learned lessons going we're there very have need XXXX, we Alberta growth compared, for maybe a we from learned but towards so of when Ontario to into the overall that. come Ontario year-on-year position to of so It's has the still good been Alberta, XXXX, market. regime, looking regulated So still we all will be, the decent in so all there, is ready Obviously, share we good.

resonate got Spin. Betway. Remember City, there. Jackpot Our got brands we've We've

cybersquatting dealings of some in of when every get mean, way, that with had we we of distraction that, we're competitors, So it at out really Ontario, of do. dug but we've and to too ], our and countries think I our marketing-wise which now what We probably we're And in And brands, fixing to bigger I I we've under-indexing learned. were what looking on doing. little rest all we the sorted relative Canada, where out means we've know are these that. in deep. along numbers. Jackpot And were losing on think, the out We And the relatively, where probably need we're really we're bit especially sorted traffic; -- we focus stuff City. that, think many showing I lots [ and We've right, countries sorting the can and Google. it's is people

Michael Hickey

guess, I moving to Africa. Yes.

bit. a You touched on it

You head start. obviously got a huge

continent. Africa us on share some market got You've #X Africa of you the share market yet. share Curious how is of in see terms Can curious in consolidated that market. market for obviously and more have if you're why, a position that competition? online your a but in -- opportunity what you share, the on aren't seems just know TAM, total maybe frame just I'm number in terms is, I predominant you It like of the players in your #X.

Neal Menashe

take so right? not, I what say that the shares, if in Yes. X -- have of positions, countries we're you There's podium we definitely on open in are we're market remember We of show only we whole to. the countries, we're lots but which we're map coming don't can is continent,

it's every brand; we helps been from and a coming. as all I know And We so online time from think years. got products It's a is are other product tremendously. of And towards ounce start. And small we're customers, on been phones head our exploding. the great us we've Europe. think a is of working every that It's it's that, the We've high-value for markets think technology; product. casino, there country use And the we they long micro-bets. the And And everything. take brand. we of operate the great key more a in. we the making that that remember the up population literally, I is in, that team; better. that's think mobile dedicated XX I the where I top exploding. customers, great, it's unbelievable, And know got open obviously We've here products huge

we So Is are. global obviously other with How marketing now is the so that And go counter then budget question we in. marketing that can in then tax the helps the rates markets? regulation those fair the country our we brands do, which resonate. is which our the in budget marketing has all -- it, markets

So why that's them. we assess

stuff And the and by can the do got we uses Jackpot we've is just it's I give operate them, itself. a as think, ring-fenced key. own that. team feeds It's can that cetera. brand, a the grow got brand, ring-fenced. that So is but on Africa And it that's beautiful certain And et Betway its City the and that's, part obviously our why, business, tech,

we So why see good growth, that's yes.

Michael Hickey

have is market or growth potential region? rate of in how a been and maybe of even TAM rate you big or your the sense Do what's sort the growth is the Africa TAM in

Neal Menashe

Yes.

So obviously we it's and think And billion. [indiscernible] TAM is about been X growing growing.

open they in haven't et as like of regs up [ there even I or mean -- ]. Rwanda the again, that countries got So are cetera -- regulations more the

So there's a we're there's in. then which Angola. them. There's in has And ], Senegal, and lots [ reg not of even

So is the It on -- presence we find devices, had got mobile but there this. Internet it's so of us is population. there. access is bullish that a of to, the already population, everyone can important course, from we're through we've and a brand, are in to go go the lots -- to, to It most so the we that part growing and super the ones really Betway remember, them got

Michael Hickey

comfortable there, be of question. Like do comfort you U.S. regulatory I -- Africa the in guess, that sort get do how situation piece. the will to regulatory Neal, investors [indiscernible] you give how is

Neal Menashe

okay. Yes,

the even get other bodies. way, we should the happens We with the the regulators. regulation. the with work what What question And -- Actually mean Germany. to happened this help tax all be in we York. Netherlands? time. I the is happened government all happened what Belgium? draft What the the gone We the other in New in work So way They've in rates question

-- that's with -- the and So we're when the back them. we're And CSR, markets, our we one these of think, giving we I risk the Africa, in and that understand you're markets the We business with have but some of into think, a enough, pay world, in a And work of we're all working this. over communities. taxes because in local funnily doing "BW we biggest our taxpayers. all them cares" these I as

We are are working with them that helping. we and showing

Michael Hickey

be you betXXX, have Flutter, ] when to look of already. have -- Do sense online you are, of any some the gaming, some global the sense you'll players think bigger think [ they're they there of the see do might at I don't but coming they online like in in? maybe players when a start of you

Neal Menashe

is is you And And They're okay. they're Yes, them We've I the battle. why do. we're we Maybe none at which there all truth are our not. basically focusing that's on picked all. really what -- focusing Brazil, of think Brazil. so on

ourselves different think who's -- I small, local else find there -- yes. local the countries. There only one operators one different but we who's in really up XXX, against, there, There's and no ones is really operators. there's

Operator

the concludes adjourned. today's session. for This conference presentation. Thank The you question-and-answer is attending

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Super Group (SGHC) 6 Nov 242024 Q3 Earnings call transcript