Super Group $SGHC Stock Up On 36% Revenue Growth

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  • Reading time:6 mins read
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SGHC stock rose in pre-market trading on February 23, 2022, after the company reported 36% gaming revenue growth.

Super Group Provides FY2021 Preliminary Results and Exceeds Forecast

  1. Full Year 2021 Net Gaming Revenue up ~36% year-over-year, exceeding $1,520 million
  2. Estimated Full Year 2021 EBITDA in excess of $350 million
  3. Super Group to report full year 2021 financial results in the first half of April

On February 23, 2022, Super Group (SGHC) Limited (NYSE: 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 provided full year 2021 preliminary results and commented on recent business activities.

Super Group generated full year 2021 Net Gaming Revenue (“NGR”) in excess of $1,520 million, representing an increase of ~36% from the prior year period. Full year 2021 EBITDA is expected to be greater than $350 million. This performance in NGR and EBITDA, which both exceed the most recent forecasts, reflects growth and profitability in existing and new markets.

Neal Menashe, CEO of Super Group commented: “We anticipate 2021 EBITDA to exceed our most recent estimate of $350 million. This reflects our team’s ability to execute our global business plan with precision, driving profitability while still attracting customers, entering new territories and expanding our sponsorship portfolio. Occasional industry headwinds, such as a lower-than-expected sports margin in October, along with the closure of select markets, including the Netherlands, were offset by stronger-than-projected new customer acquisition and revenues in multiple markets, for both Betway and Spin.”

Super Group continued the expansion of its global footprint in 2021. The Betway brand is currently live in five U.S. states through Digital Gaming Corporation (“DGC”) and DGC has secured market access in up to an additional seven states. Subject to regulatory approval, it is anticipated that DGC will become a part of Super Group later this year.

Super Group reiterated that it has a steady pipeline of opportunities that would enable it to launch the Betway and Spin brands in additional global markets throughout 2022.

Richard Hasson, President & COO of Super Group said: “Super Group has an expanding, global footprint in a high-growth addressable market. We seek to consistently drive topline growth without sacrificing profitability, and we benefit from decades of experience navigating new and evolving markets. With our public listing complete, we intend to report full year 2021 results and hold our first earnings call in the first half of April. We will then provide a business update to discuss our first quarter 2022 financial results in May.”

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 Super Group’s audited financial statements for the year ended December 31, 2021, and are presented on a constant currency and pro forma basis to show a like-for-like comparison with forecasts that assume the consolidated group structure as at year-end. Using a constant currency, the 2021 figures have been restated into USD currency using the same exchange rate as that used for preparation of such forecasts.

Super Group (SGHC) Limited is the holding company for leading global online sports betting and gaming businesses: Betway, a premier online sports betting brand, and Spin, a multi-brand online casino offering. The group is licensed in multiple jurisdictions, with leading positions in key markets throughout Europe, the Americas and Africa. The group’s successful sports betting and online gaming offerings are underpinned by its scale and leading technology, enabling fast and effective entry into new markets. Its proprietary marketing and data analytics engine empowers it to responsibly provide a unique and personalized customer experience. For more information, visit https://www.sghc.com

Sports Entertainment Acquisition holders approve merger with Super Group

On January 26, 2022, Sports Entertainment Acquisition (SEAH), a special purpose acquisition company, announced that its shareholders voted to approve its proposed business combination with SGHC Limited. Super Group has waived the minimum cash condition to be satisfied at the closing of the combination, and Sports Entertainment expects all closing conditions to be met. The transaction is expected to generate approximately $202.4M from SEAH trust proceeds, reflecting approximately 45% of the publicly held shares that were not submitted for redemption. The closing of the Business Combination is expected to occur Thursday, January 27. Following closing, the combined company will be known as “Super Group (SGHC) Limited,” and on Friday, January 28, its ordinary shares and public warrants are expected to trade on the New York Stock Exchange under the symbols “SGHC” and “SGHC WS,” respectively.

📺 Super Group (SGHC) CEO On Going Public

Super Group (SGHC) CEO On Going Public

📉 SGHC Stock Technical Analysis

Sghc Stock

We don’t have enough chart data to get a good technical read on the stock but there is resistance at 8.41 from a horizontal line in the daily time frame.

The technical rating of SGHC is bad and it also does not present a quality setup at the moment. SGHC stock has a Setup Rating of 3 out of 10. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first. Click here to sign up for email alerts on when SGHC stock consolidates and has a Setup Rating of 8 or higher.

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