Super Group Reports Financial Results for Fourth Quarter of 2024

   -- 
 Revenue of approximately EUR1.7 billion; includes highest ever total 
      revenue for a fourth quarter of approximately EUR500.0 million 
 
 
   -- 
 Profit before tax for the year of EUR188.8 million and EUR96.8 million 
      for the fourth quarter 
 
 
   -- 
 Non-GAAP Adjusted EBITDA ex-US of EUR391.1 million for the year 
      exceeded guidance and EUR128.8 million for the fourth quarter 
 
 
   -- 
 Unrestricted cash of EUR355.8 million as of December 31, 2024 
 
 
   -- 
 Minimum quarterly dividend target raised to 4.0 cents per share up from 
      2.5 cents 
 
NEW YORK--(BUSINESS WIRE)--February 25, 2025-- 

Super Group (SGHC) Limited $(SGHC)$ ("SGHC" or "Super Group"), the parent company of Betway, a leading online sports betting and gaming business, and Spin, the multi-brand online casino, today announced fourth quarter 2024 and full year 2024 unaudited consolidated financial results.

Neal Menashe, Chief Executive Officer of Super Group, commented: "The company made phenomenal progress in 2024, and we are proud of our strong finish to the year and the record-setting performance across the business. In December, we declared a special dividend, bringing our total 2024 shareholder returns to over $125 million, and going forward, I'm pleased to announce that we plan to increase our minimum quarterly dividend target to 4.0 cents per share up from 2.5 cents, in line with our commitment to continue returning excess cash to our shareholders. As we begin 2025, we are deeply focused on our key growth markets, offering a highly bespoke and localized product, maintaining a lean cost base and having a significant marketing budget ready for the right investment opportunities. We believe that Super Group is in an excellent position to build on last year's success, and we look forward to another year of solid growth."

Alinda van Wyk, Chief Financial Officer of Super Group, stated: "We achieved our best results to date, delivering full year ex-US revenue of EUR1.663 billion and ex-US Adjusted EBITDA of EUR391 million. In the US, our total investment for the year came in at EUR61 million, which we expect to reduce considerably in 2025 given our exclusive focus on iGaming. In the fourth quarter, we saw the benefit that operating leverage is having on our financial results, delivering our best ever ex-US quarterly results with Total Revenue of EUR487 million and Adjusted EBITDA of EUR129 million, a considerable margin of 26%. We are pleased to see continued momentum into 2025 and anticipate another year of double-digit growth across both Total Revenue and Adjusted EBITDA."

Dividend Announcement

The Group is delighted to confirm that annual dividend program targets will be increased from 10.0 cents to a minimum of 16.0 cents cash per share in 2025, with payments made on a quarterly basis, subject to approval of Super Group's Board of Directors, in its discretion, and subject to other potentially advantageous uses of funds. In line with this new target, Super Group's Board of Directors has declared the first dividend of 4.0 cents per share payable on March 28, 2025 to shareholders of record as of the close of business on March 10, 2025.

Quarterly Financial Highlights (Unaudited)

   -- 
 Revenue increased by 39% to EUR500.0 million for the fourth quarter of 
      2024 from EUR359.9 million in 2023 (constant currency increase 39%). 
 
   -- 
 Profit before tax for the fourth quarter of 2024 was EUR96.8 million 
      compared to a loss before tax of EUR44.9 million in 2023. The loss for 
      the fourth quarter of 2023 was mainly affected by non-cash charges of 
      EUR35.9 million relating to the impairment of the Digital Gaming 
      Corporation Limited ("DGC") cash generating unit, as well as EUR6.1 
      million relating to an increase in the fair value of a liability for a 
      call option granted to a third-party to purchase the B2B division of DGC, 
      which was exercised in the first quarter of 2024. 
 
   -- 
 Adjusted EBITDA, a non-GAAP financial measure, was EUR118.1 million in 
      the fourth quarter of 2024 compared to EUR33.6 million in 2023. 
 
   -- 
 Monthly Average Customers for the fourth quarter of 2024 were 5.3 
      million compared to 4.7 million in 2023, a 12% increase. 
 

Full Year Financial Highlights (Unaudited)

   -- 
 Revenue increased by 18% to approximately EUR1.7 billion for 2024 from 
      EUR1.4 billion in 2023 (constant currency increase 21%). 
 
   -- 
 Profit before tax was EUR188.8 million for 2024 compared to EUR16.8 
      million in 2023. The profit in 2024 includes non-cash charges of EUR13.0 
      million (2023: EUR28.6 million) relating to an increase in the fair value 
      of a liability for a call option granted to a third-party to purchase the 
      B2B division of DGC as well as a gain of EUR40.1 million relating to the 
      sale of the division in February 2024. Additionally included in 2024 is a 
      non-cash charge of EUR36.8 million (2023: EUR35.9 million) relating to 
      the impairment of the DGC cash generating unit. 
 
   -- 
 Adjusted EBITDA, a non-GAAP financial measure, was EUR330.3 million for 
      2024 compared to EUR198.2 million in 2023. The measure for 2024 comprised 
      Adjusted EBITDA ex-US of EUR391.1 million and an Adjusted EBITDA loss of 
      EUR60.8 million in the US. 
 
   -- 
 Monthly Average Customers for 2024 were 4.8 million compared to 4.0 
      million in 2023, a 20% increase. 
 
   -- 
 Unrestricted cash was EUR355.8 million as of December 31, 2024 compared 
      to EUR241.9 million at the end of 2023. 
 

Guidance 2025

Super Group projects double-digit growth across both Total Revenue and Adjusted EBITDA.

   -- 
 Ex-US guidance projections: 
 
          -- 
 Total Revenue: >EUR1.830 billion 
 
 
          -- 
 Adjusted EBITDA: >EUR435 million 
 
 
 
 
   -- 
 US guidance projections: 
 
          -- 
 Total Revenue: EUR85 million 
 
 
          -- 
 Adjusted EBITDA: Between EUR(30) and EUR(35) million 
 
 
 
 
   -- 
 Combined guidance projections: 
 
          -- 
 Total Revenue: >EUR1.915 billion 
 
 
          -- 
 Adjusted EBITDA: >EUR400 million 
 
 
 

Preliminary Financial Results

The financial results included in this press release are preliminary, have not been audited and are subject to change upon completion of the audit of Super Group's financial statements for the year ended December 31, 2024. As a result, these preliminary results may be different from the actual results that will be reflected in Super Group's consolidated financial statements to be included as part of Super Group's Annual Report on Form 20-F for the year ended December 31, 2024 to be filed with the US Securities and Exchange Commission.

Non-GAAP Financial Information

This press release includes non-GAAP financial information not presented in accordance with the International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board.

EBITDA, Adjusted EBITDA, Adjusted EBITDA ex-US, Adjusted EBITDA US and revenue on a constant currency basis are non-GAAP company-specific performance measures that Super Group uses to supplement the Company's results presented in accordance with IFRS. EBITDA is defined as profit before depreciation, amortization, finance income, finance expense and income tax expense. Adjusted EBITDA is EBITDA adjusted for RSU expense, change in fair value of options, unrealized foreign exchange, gain on disposal of business, impairment of assets, US sportsbook closure, market closure and other adjustments. Adjusted EBITDA ex-US is Adjusted EBITDA relating to the rest of the group, excluding Digital Gaming Corporation ("DGC"). Adjusted EBITDA US is Adjusted EBITDA relating to DGC. Constant currency revenue growth is calculated by translating non-Euro performance for 2023 and 2024 using 2023 exchange rates.

Super Group believes that these non-GAAP measures are useful in evaluating the Company's operating performance as they provide additional perspective on the financial performance of our core business, are similar to measures reported by the Company's public competitors and are regularly used by securities analysts, institutional investors and other interested parties in analyzing operating performance and prospects.

Management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with IFRS. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses that are required by IFRS to be recorded in Super Group's financial statements. In order to compensate for these limitations, management presents non-GAAP financial measures together with IFRS results. Non-GAAP measures should be considered in addition to results and guidance prepared in accordance with IFRS, but should not be considered a substitute for, or superior to, IFRS results.

Reconciliation tables of the most comparable IFRS financial measure to the non-GAAP financial measures used in this press release, other than revenue on a constant currency basis, and supplemental materials are included below. Super Group urges investors to review the reconciliation and not to rely on any single financial measure to evaluate its business. In addition, other companies, including companies in our industry, may calculate similarly named non-GAAP measures differently than we do, which limits their usefulness in comparing our financial results with theirs.

Reconciliation of Profit before taxation to EBITDA and Adjusted EBITDA

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