Super Group suffered post-tax losses of €163.2m in Q1 of 2022, owing to large costs associated with its business combination with Sports Entertainment Acquisition Corporation and the subsequent NYSE listing.
Publishing its first-quarter results for 2022, the group conceded that the majority of the losses were sustained in relation to its business combination.
The transaction was completed in January and came with €201.5m of costs and adjustments, including €21.4m of transactional costs and €180.1m of non-cash costs.
Neal Menashe, CEO of Super Group, commented: “During the first quarter of 2022, Super Group began operating as a US publicly listed company and continued to expand in both existing and new markets in line with our growth strategy.
“Our team has become accustomed to navigating the business through changing and challenging environments, and we believe the strategies that we are executing on will enable us to continue doing so as we take Super Group from strength to strength.”
Q1 revenues did jump 7% YoY up to €334.5m, as the Betway and Spin parent company noted growth in Africa and Asian markets. However, this was offset by adverse conditions in European markets, with tightening regulations impacting performance.
Breaking down revenue by division, the Spin online Casino delivered the largest revenues, generating €147.0m. Betway’s online casino yielded €57.5m of revenues and its sports betting brand delivered €109.0m of turnover. Meanwhile, Spin generated €452,000 of turnover.
The Group’s North American performance saw €150.5m delivered in revenue, 1.2% up YoY. This was primarily driven by gaming firm Spin’s performance, which generated €116.0m in revenues, 79% of the division’s global revenue. Meanwhile, Betway yielded €34.5m in revenues, covering 18% of the sports betting division’s total revenue.
In North America, Super Group launched Betway in Ontario following its online sports betting market launch. It is currently awaiting the ‘imminent registration’ for the Spin brands, however, it is operating there with the knowledge of the Alcohol and Gaming Commission of Ontario.
Super Group’s LatAm operations also displayed modest growth, with total revenues reaching €6.9m, up 6.1% YoY.
Despite significant losses related to the company’s business combination, Super Group’s adjusted EBITDA showed a €61.5m profit, up 14% YoY, displaying improved profitability from core operations.
Alinda van Wyk, CFO of Super Group added: “The results for the first quarter of 2022 reflected revenue growth and strong cash generation but were challenged on a period over period comparative basis due to industry and economic headwinds and costs related to our business combination and listing as a public company in January.
“Despite tough period over period comparisons, Super Group experienced revenue growth and a period over period 39% increase in cash and cash equivalents.”