Super Group (SGHC) Ltd. Q1 FY2025 earnings call

• Announcements: Thanked Richard Hasson, will report financial results in USD, include U.S. business in results, reintroduce at Investor Day on September 18, 2025.
• Financial highlights: Q1 2025 total revenue $517M (+25% YOY), adjusted EBITDA $111M (+120% YOY). Ex-U.S. revenue $502M (+24% YOY), adjusted EBITDA $121M (+62% YOY). Africa growth driven by South Africa, Ghana, Malawi, Botswana; Europe growth led by UK and Spain; Canada performance strong; APAC affected by currency and closed markets. U.S. iGaming EBITDA improved, balance sheet stellar with $351M unrestricted cash and no debt; dividend of $0.04 per share declared.

The combined group delivered an all-time high first quarter total revenue of $517 million, growing 25% year-over-year. Total combined group adjusted EBITDA, a first quarter record, increased by 120% year-over-year to $111 million, with a combined margin of approximately 22%. Total revenue ex the U.S. was the highest first quarter ever, growing 24% year-over-year to $502 million. Adjusted EBITDA ex the U.S. grew 62% to $121 million, with a margin of 24%. African grew 54% year-over-year, Europe was up 53% year-over-year, Canada grew 13% year-over-year, while APAC was down 13% year-over-year. In the U.S., first quarter 2025 EBITDA improved to a $10 million loss from an $11 million loss in quarter four 2024.

• On February 21, 2025, guided to fiscal year group revenue of greater than $2 billion and group adjusted EBITDA of greater than $421 million. Today, maintaining this guidance.

• Black market affecting revenue in some regions. - Regulatory challenges and potential tax changes in certain markets.

Q: Jed Kelly asked about sports handle ex the U.S. up 14% and U.S. competitiveness.

A: Neal Menashe said sports product development and marketing effectiveness are key, and in U.S., enhancing product offering with Spin Palace Casino, focusing on product, marketing, and efficiencies.

Q: Jason Tilchen asked about Africa growth and Nigeria.

A: Neal Menashe said Africa has growth potential with product tweaks, Botswana launch successful, Nigeria product needs improvement with localization.

Q: Clark Lampen asked about Africa performance by territory and U.S. iGaming.

A: Neal Menashe said Africa growth not disproportionately levered to one territory, tech stack helps roll out features; in U.S., New Jersey and PA showing traction, breakeven approaching.

Q: Bernie McTernan asked about Africa's mix in global pie and guidance.

A: Neal Menashe said Africa has high incremental margins, guidance unchanged, assessed yearly.

Q: Mike Hickey asked about Africa market share and new markets.

A: Neal Menashe discussed market share in Africa, new markets in pipeline, and potential M&A for expansion.