{"id":6774,"date":"2022-04-15T07:09:55","date_gmt":"2022-04-15T14:09:55","guid":{"rendered":"https:\/\/wagers.com\/staging\/4285\/?p=6774"},"modified":"2022-04-15T09:21:12","modified_gmt":"2022-04-15T16:21:12","slug":"super-group-results","status":"publish","type":"post","link":"https:\/\/wagers.com\/staging\/4285\/news\/super-group-results\/","title":{"rendered":"Super Group results highlight regulated vs. unregulated split"},"content":{"rendered":"<p><em><span style=\"font-weight: 400;\">The Super Group financial details of their full-year results show how difficult it is to find the balance between regulated and unregulated revenues.<\/span><\/em><\/p>\n<p><span style=\"font-weight: 400;\">Operators make a great deal of working in regulated markets. However, the realities and costs of working in those markets are clear when looking at their revenue breakdowns.<\/span><\/p>\n<p>The details from <span style=\"font-weight: 400;\">the parent company of the Betway and Spin brands&#8217; full-year statement showed that:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Revenues were up 45% YoY to \u20ac1.3bn and adjusted EBITDA was up 60% to \u20ac289.5m.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The revenue mix was 65% casino, 29% sport, 6% other.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The geographic split showed that North America made up 45% of the total, Asia 25%, Africa and the Middle East 17%, Europe 11%, and LatAm 2%.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The revenue breakdown shows that at around \u20ac594m, North America makes up close to half of Super Group&#8217;s revenues in 2021.<\/span><\/p>\n<h3><strong>Canada high, Europe highly costly<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Super Group is in the very early stages of expanding into the US. Currently, it is live in Iowa, Colorado, Indiana, Pennsylvania, New Jersey, and Arizona and has market access deals for a further 12 states.\u00a0<\/span><\/p>\n<blockquote><p><em><span style=\"font-weight: 400;\">But it has minimal share of market in the US. Canada, and specifically its online casino player base, is the significant revenue generator for the group.<\/span><\/em><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">Further detail shows that the company&#8217;s icasino brand Spin generated \u20ac463m of the \u20ac594m North America revenue total.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But it also reveals the real cost of sports sponsorship deals and doing business in the biggest regulated markets in Europe. Super Group is active in the UK, France, Sweden, Spain, and Italy.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And yet the region generated &#8216;just&#8217; \u20ac160m in revenues in 2021.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is despite the group working in some of those markets for many years. Its Betway brand has run many high-profile and no doubt costly sponsorships and betting partnerships with many major sports teams in those countries.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As industry observers have commentated:<\/span><\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone size-medium wp-image-6754 aligncenter\" src=\"https:\/\/wagers.com\/staging\/4285\/wp-content\/uploads\/Alun-betway-tweet--300x169.png\" alt=\"\" width=\"300\" height=\"169\" \/><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<h3><strong>Ontario license delay<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Which is why the<\/span><a href=\"http:\/\/igamingontario.ca\/en\/player\/regulated-igaming-market\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\"> delay in getting licensed in Ontario<\/span><\/a><span style=\"font-weight: 400;\"> is all the more surprising. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">During the group&#8217;s call with analysts, CEO Neal Menashe said Betway and Spin are not yet licensed in the province but were still operating there.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">He said it was in regular discussions with the Alcohol and Gaming Commission of Ontario with regard to obtaining its license.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Menashe added there would not be a blackout period or delay and the group would continue operating there while it waited for its license: \u201cNo delay from when you roll in from the dot com to local regulation,\u201d he said.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The province is expected to be one of the most competitive markets in North America, but Menashe said the group would not jump into promotional wars in Ontario and would keep a tight rein on marketing costs.<\/span><\/p>\n<blockquote><p><em><span style=\"font-weight: 400;\">\u201cWe\u2019ve seen how New York has behaved with huge bonuses and no tax rebates on the spend. You can\u2019t change strategy just because of a new market, Ontario is no different and remember it\u2019s only one province in Canada.\u201d\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><\/em><\/p><\/blockquote>\n<h3><strong>Online casino key<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">As mentioned above, the revenue breakdown shows how significant online casino revenues are to Super Group and this will no doubt play out in Ontario.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With leading US brands such as DraftKings mentioning how difficult they had found cross-selling sports bettors into casino products, Menashe said this was why it would continue to operate a dual-brand strategy, with Betway and Spin operating wherever possible.<\/span><\/p>\n<blockquote><p><em><span style=\"font-weight: 400;\">\u201cGenerally across the world, specific igaming customers vs. sports betting are very different. Betway customers are very different to Spin customers and that\u2019s why we have both brands and can attract each type of customer. That applies to Ontario and that\u2019s why we move province by province.\u201d<\/span><\/em><\/p><\/blockquote>\n<p>When it comes to geographic emphasis, Canada represents 45% of Super Group&#8217;s global revenues. The company will have its hands full in that market, starting with Ontario.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Super Group financial details of their full-year results show how difficult it is to find the balance between regulated and unregulated revenues. Operators make a great deal of working in regulated markets. However, the realities and costs of working in those markets are clear when looking at their revenue breakdowns. The details from the [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","footnotes":""},"categories":[324],"tags":[],"class_list":["post-6774","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/posts\/6774","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/comments?post=6774"}],"version-history":[{"count":10,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/posts\/6774\/revisions"}],"predecessor-version":[{"id":6788,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/posts\/6774\/revisions\/6788"}],"wp:attachment":[{"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/media?parent=6774"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/categories?post=6774"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/tags?post=6774"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}