SGHC - Earnings call transcript Q4 2024 | Super Group (SGHC) Limited

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Operator

Good day, and welcome to the Super Group's Fourth Quarter and Full Year 2024 Earnings Webcast and Conference Call. I would now like to turn the conference over to Brett Milotte from ICR. Please go ahead.

Brett Milotte

Good morning, everyone, and thank you for joining us today to discuss Super Group's results for the fourth quarter and full year 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 from the company's forecast.

responsibility forward-looking no required other assumes law. by Group to statements update than Super Super refer Group financial call, today's On may measures. to non-GAAP certain a GAAP. These to financial are measures prepared substitute not performance with non-GAAP of for accordance in in measures financial and addition provided today of these has of the Relations and the available measures non-GAAP press the Super reconciliation measures page GAAP on comparable in a Group's release Group financial to Super most issued website. earlier Investor

internally results its Group and Super Super XXXX report and aligns provided Super In the and and to recommends how that Group is will has guidance parts, Super XXXX cash-generative its Super financial Super U.S. annual in website. Group posted speak investors supplementary going presentation with its highlighting metrics addition, will Group's global refer its to the to forward. X for business investments This and consistent profitable how that the Group separately with business Group from views into

On by And I'm Q&A turn be Chief Hasson, Officer. And and also Officer. like session, I'd to Chief we'll Menashe, during joined Neal this President Chief the joined Van Officer; and call the Wyk, Commercial Financial Richard call, to over Neal. now Alinda Executive by

Neal Menashe

of OpEx we shareholder while all efficiencies. Thank proud Quarter meaningful for year out this Super to welcome returns. and that on and Good Call. we you, Fourth have was our Brett. are our we and year key an marketing focus outstanding ago, refine delivering Group, proud growth morning, I'm Super footprint, Full realize fine-tune global very that product Earnings of Group's everything everyone, achieved. and have increase we say XXXX set Year markets, technology to A XXXX and achieved to our and

high total for year U.S. that to for Turning XX% adjusted guidance of all-time guidance to our the year, to growing billion. XX% XXX ex XX% EUR ex was full growing revenue record, a Adjusted a margin also Total revenue EUR the our year-over-year X.XX We both a above comfortably EBITDA initial XXXX ex XX%, XXXX. numbers. targets well reflected. an the U.S. year-over-year was our million, for and beat U.S. full EBITDA

For ex the fourth quarter, a year-over-year phenomenal U.S. XX%. XXX% total ex XX% U.S. million. another also high, XXX EUR EUR growing record, year-over-year set Adjusted quarterly the was of XXX a revenue the all-time to to EBITDA growing margin million,

our X.X the customer new across customers including to of a all a million. monthly And new quarter, high an active for million of new set products X.X records customers top just We during and unique under daily record average business new we our it operating our The total leverage out best for in all a monthly financial December direct impact and ever. having highs closed on our quarter month inherent off, with the revenue. set results. deposits is

markets revenue incremental existing profitable. scale, becomes more our reach As

Continued a focus investment in expansion. leaner, are efficient this a margin revenue base growth, cost with more laser driving on coupled

margin ex-U.S. continue to than greater this trend and while expect to XX%. long-term our We increasing target

to relatively in since revenue record started strategy, still continue October, developing, is December. small shoots U.S., to was in business the In and then which see quarter November with an highs the new green transitioning The QX. while surpassed and we in including iGaming-only both

finding we remain the EUR profitability. U.S. year focused line the full our As XX and year, million, developing business quarter, now path solely quarter in this coming XX% over target XX to the we for on iGaming our The KPIs, EUR a with to revenue reduce growing focus expect ever on investment to EUR our was best With materially a and investment by QX to total result, XX million. was spend year-over-year million. taking

taking million XXX dividend paid the annual to to finished target We our $X.XX of share, our year a shareholders. This EUR of sheet. In we special well being minimum balance per $X.XX over cash above share, December, for the to per resulted of debt. on dividend with cash the in million our $X.XX and $XXX Moving no quarter total per announced share. unrestricted

ahead, announce we increase quarterly Looking from secured to per target our Board to approval we minimum $X.XXX. are pleased dividend up $X.XX to that share,

will March, The and be first moving will on a payment made assess forward. in the basis quarterly Board

to guidance. Turning

achieve robust a start to in brilliant growth. that another off and will are of confident XXXX are We we year

to an XXX In and the iGaming-only numbers, ex XX%, grow investment considerably first full XX% the we U.S. million U.S. and grow XX on combining EUR margin running this of to total over footprint. will U.S., total margin XXXX expect EBITDA XX to year EUR than expect EUR EUR basis. XX between calculated and of revenue business, that EBITDA least million, higher and When the our basis, above we adjusted a adjusted XXXX billion XX.X% to combined X.X EUR total this revenue million than EUR our be same U.S. XXXX a of And million, the ex total to of reduce to For least amounts X.XXX greater billion from million. margin at to year-over-year XX%. at around of our on revenue and EUR XXX of

company online major player over supported betting solid the of changes the is year sports Super a our as created business made fourth months substantial well continued positioned world into for is marketing. profitable a the outlook bright. an past for investment our progress a in by and gaming and ongoing Group and as NYSE-listed foundation and have sustainable XX that The to we have growth,

look ahead way. and along We about year to the the forward updating are excited you

to the I'll call over the up Operator? for to operator the questions. open turn now call

Operator

Mike Our first [Operator Hickey Benchmark with Instructions] question Company. comes from The

Michael Hickey

fantastic and quarter year, congratulations. Great guys

of here And into I we Just a 'XX similar us, see In like factored revenue. for a sort is guidance, X questions of of to it follow-up. Neal? Great assume looked spend spend have from your guidance XX% your 'XX. 'XX, strong Neal. level marketing around Should is

Neal Menashe

Yes, revenue we seeing higher number, XX% that's get what how number forward. continue that's that's returns, you we're marketing to continued for and a right. moving because bigger efficiencies our track of Obviously, growth. but we've And a budgeted XX%, it's way. that the good

Michael Hickey

The also, think, -- dividend. you here in guess your that that, see increase your 'XX, big your to the speaks quarterly nice also special love Neal? And in another I hear to I'd expect decision business. there. dividend, should in we confidence

Neal Menashe

Yes.

our back and always on course, to want So we've dividends. We we super obviously And happy to obviously, money return it the go of we a to quarter. increased that are forth $X.XX shareholders. back

our but increased that. But to try see to now be good last or $X.XX a then exceed still the with to get stuff an dividend acquisitions a quarter. going would can which returned along, and we $X.XX obviously aim impact if dividend year, policy aim that, we that would on the you have if So come here,

Operator

Tilchen Our comes from Genuity. question next with Jason Canaccord

Jason Tilchen

to existing market and you bit release. start, think within growth I coming press growth little could markets in versus the see some markets? I'm about is a more just How of talked key the you if opportunity share in markets share underlying of entering bit about gains little a from that also from the much new you wondering that

Neal Menashe

Okay.

markets. the But can I we along last up focused year on markets growth on not countries, existing in in. big become are see numbers those new path Canada, countries coming way. on opening, profitability. effort We we opening that moving Zealand, all from some all picked new of it's a And markets up markets African about remember, New do if the a we're et we we the the of to in firstly, countries, down we're latter course, honing said in So all of the our And our the markets. cetera, in and And how had is in it's is sustained laser of we closing showing parts that Europe, And we are think profitability get we that the forward. those.

Alinda Van Wyk

stay just so that to your at also in is to market. Jason, is on invest the just Neal percentage, increase We higher share a that made specific there, that reference we ability have market to the add marketing to the focus to And spend. question what

Jason Tilchen

sort compelling And opportunities, that just having line you looks time bit to of you Africa in the really that some Can you talked that opportunities and of about you're marketing additional in what pipeline are Great. there of that interesting growth And mean sort markets maybe you see little share you of a what level of sort about, as helpful. sort the deploy the Africa? talked about that investment really a Okay. there? of ready like little the see. markets is sort it spend That's what more bit of

Neal Menashe

Yes.

we've markets new are There the opportunities. up are way. there So opened along

we've in path ones. more it's the And few there software being the the of are and again, we the year. we especially a one spend think product Botswana are of the in where the we all I the marketing all no opened in can't it's up markets, that's all in growth and more European some so seeing the It's there but are markets coming. existing back each about to got markets, be you've And we've I news why read And the this some there. the enhancements good market recently, and taken think profitability, markets. existing ones, coming about existing in in we those efficient see

in rather for markets, our rest in -- focused Germany, that's markets we're world. we there. to And industry like the we growth. We Just numbers, And good think the based But you in you Brazil for to it mention, gone the et whole at cetera. growth on the the license. minute, we the growth probably a And I'll on that systems, just coming we don't the good of see in. we see in see just go hasn't decided be to I where haven't that one seen that's as super a Brazil, what ready not good is like down other something but fix customer the one how seen product it. can whole we for has competitive are regulation last seeing the are our the the applied And Germany,

Operator

with Our comes next McTernan & Company. Needham Bernie from question

Bernard McTernan

from It big Maybe what down just touch to on a the implies you guidance. in just pretty step achieved I XXXX XXXX. start, to revenue want

'XX comments are guidance back guidance. any maybe outperformance came methodology, in just of that a taking in some beneficiaries? the of original where XQ just terms And So maybe the step versus on one-timers

Alinda Van Wyk

U.S. down Bernie, EBITDA. increase, guidance Sorry, a for both double-digit in are guidance from it's increase adjusted just for your step ex to because to you making revenue question, reference business actually repeat an and

So we...

Bernard McTernan

year-over-year saying 'XX step the in is growth was rate the XQ. just versus a down versus or I exit Sorry, in 'XX

Alinda Van Wyk

first the EUR ex million U.S., U.S. you combined. it's then actually we the for -- increase an ex XXX gives to time, that, you EUR at of and XXX look So, combined of we've billion. revenue, I But which think adjusted number or if EBITDA above million X.XX and total U.S. our EUR over

top So and both line. is bottom double-digit growth

Neal Menashe

point, Obviously, way. want than greater off And to these good the and I also achieve, my sports it's from But numbers. we're we what to remember, is along we start. think this got results a

So But in were are XX% our us last the casino. XX% of fact. business to that to but about obviously, let's is, just always cognizant say, quarter, still we they favorable obviously

we can err the on we have side that, we than of to numbers, greater just think but caution. these So be

Bernard McTernan

May. Africa. on Okay. touch Understood. just And I A last deal to also, closed want

X over you weren't the could control. asset is doing generally, performance? now to that it do Anything under how Or of you just So before? that contributing your being months

Neal Menashe

No. Okay.

Africa Remember, then, in sportsbook obviously, use X the always in our So and was right, things. PAM ours, feeds, the et they cetera. Africa,

of seeing that So the be product in being a market-leading we direct operate in countries Africa. which to the we're benefit in able

in marketing EUR remember, so But our XXX got you that XX% XXX And the So important, this is we're super -- numbers, only so of million it which marketing our think to still with coupled budgets, like -- million you we right? we've saying way we're see all, it the is the get going I that, keeping spend EUR not operating -- product enhanced need leverage. same I'm opportunities. when we but super deploy marketing. deploy that

drop remember products our that want that but got we every New to Africa, And is and We really have. the in our a and cetera. us seeing all long-term XX%, the That about Zealand, bring offer, this from world, sustainable is sustainability features in could we we not enhanced Canada, which million et what down profit, business, budget could think EUR it's what easily in XXX marketing rest the of the we've customer -- another say in key. of I for year, XX% but I our especially could we're U.K., Ontario, base, of we that's

Bernard McTernan

the right way the Understood. And first included in Any one Any now for terms me. is And last updates strategy? guidance. still in the the U.S. of just to update? year? Obviously, profitable think about XXXX is

Neal Menashe

sorry. about operating revenue and think and there. the Yes, U.S., I'm covering margin the the so. up Basically, marketing. I it's Yes, course, us of the getting except now all our costs, And for then, we are in

costs about recovering as So then marketing now the revenue of it's increases. more that

Operator

next [Operator with Kelly Our question comes Jed Oppenheimer. Instructions] from

Jed Kelly

can in regulatory legal Or of couple and just And are the Just the of then And as the at you have potentially? should contemplating be terms the regions watching we follow-ups. of I balance kind environment? of pitfalls, other about year potential Alberta look what regulations? guidance, becoming talk you we a

Neal Menashe

No. Okay.

So numbers. first the half increase taxes of been our there's slight in And in bit coming in U.K. expecting only of Alberta then a XXXX in we're the

our And from so that's in additional and XXXX the small New of factored second in course, then, was in but numbers tax it's Zealand. levy amount. some a there, some And of half --

hoping that's the line there. the New in XXXX So with we're down numbers. there our included all be and regulates XXXX regulators then in But far Zealand

Jed Kelly

regions And New looking your of hold you then think the competitors How had to in obviously, at normalized what more balance, you got might tuck-in when quarter, is would Zealand sports acquisitions? should do Australia, Would had a Or be favorable we what it And because would your results some where other you be? sort if potential we about be and targeting been sportsbook cash correct? of then I results had acquire? plenty not XQ just last think you Africa, you capacity acquisitions to of look dividend.

Richard Hasson

first I'll Jed, part Richard here. answer your question. of the

globe, So number regions. I them existing in of a in regions the across terms say, constantly assessing or of opportunities, complementary we're would

gaming So probably landscape. opportunities across across the more both in M&A the and betting tuck-in form of regulated sports

Neal Menashe

And then I'll just argue on the margin.

margin casino the had a quarter actually normal coming you then X, sports together. both margin So that but was in plus

those the It's just winning. wasn't of margin in it an some months. extraordinary you So before, in outliers that quarters the had rest

So they were less.

sports see and shows profits we together, I the what the X quarter delivered. So think casino, when then you X going are the the

sportsbooks the month X.X And our our before, the But that our X that just say ever in. of ecosystem. is And where on that's me deposits, call And on the And customers was X.X be I about and for me, we in X.X from had customers we did that day. customers used number come all all and we've for shows depositing is the December average. and highest returning play casinos. to about big million our and million into into system then and in

Jed Kelly

Yes.

Governor got X:XX -- of Okay. like doing mean, the p.m. And a guess budget at guided you the Jersey, to New he's circling I I today. today back address then U.S., just he's

he that How out higher view does -- that you that gaming rate? go out a the higher the taxes? U.S., if just -- Jersey how upwards speculating are your XX%. how markets want And -- those change would you New to view would given would taxes change of could potentially how would that raise -- you pull to tax make like would Some to potentially

Richard Hasson

in any -- view those in markets that Jed, there a rate, there at theory would others, form would proposed sustainable those doing. what our any of profitable any think, question tax in I on now And point. so we're part there for macro wasn't, doing is that just meant is tax continue we it the increase if higher a we rate path if take But us then for markets. a or

doing. in We are now tax we're those seeing the rates what shoots green current And current means markets. based we markets doing on and continue that good for

Neal Menashe

in efficiencies. done the importantly, most have year, what is right, also But we've last cost

people. are the we increase increase that cost systems to in. I not all et cost as X,XXX it's counts, cetera. have in It's think It's the putting volumes, down efficiencies. because it's manage more don't all we And can like get we about to we're about efficiencies staff

is taxes. that also that's helps increase you what efficient of weather these base. to an all And some of So make operating cost in

Operator

has The This question-and-answer concluded. conference attending presentation. session. concludes you today's now our Thank for

You may now disconnect.

Super Group (SGHC) 25 Feb 252024 Q4 Earnings call transcript