Super Group (SGHC) Q2 2025 Earnings Report

Super Group (SGHC) EPS Results

• Actual EPS: N/A
• Consensus EPS: $0.12
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Super Group (SGHC) Revenue Results

• Actual Revenue: N/A
• Expected Revenue: $501.51 million
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Super Group (SGHC) Announcement Details

• Quarter: Q2 2025
• Date: 8/6/2025
• Time: After Market Closes
• Conference Call Date: Thursday, August 7, 2025
• Conference Call Time: 7:45AM ET

Super Group (SGHC) (NYSE:SGHC) operates as an online sports betting and gaming operator. It offers Betway, an online sports betting brand; and Spin, a multi-brand online casino offering. Super Group (SGHC) Limited is based in Saint Peter Port, Guernsey.

Super Group (SGHC) Q2 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Super Group delivered a record Q2 with total revenue of $579 million (+50% YoY) and adjusted EBITDA of $157 million (+78% YoY) at a 27% margin.
• Positive Sentiment: The company raised its full-year 2025 ex-U.S. adjusted EBITDA guidance to $500–510 million, up from previous expectations of over $418 million, reflecting strong momentum.
• Negative Sentiment: Super Group announced its exit from the U.S. iGaming market, anticipating approximately $15 million in one-time cash restructuring costs plus $63.9 million of non-cash impairments and $22 million of contract provisions.
• Positive Sentiment: Regional growth was robust with Europe revenue up 53% (U.K. +83%) and Africa up 59%, driven by product innovations such as BET Builder and new loyalty programs.
• Positive Sentiment: The company ended Q2 with $393 million of unrestricted cash, zero debt, and has returned $166 million to shareholders over the past 12 months, including $0.08 per share in 2025 dividends.

Presentation

[Operator]

Good morning. Welcome to Super Group's Second Quarter twenty twenty five Earnings Webcast and Conference Call. My name is Nora, and I'll be your moderator today. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. I would now like to pass the conference over to our host, Hinke Mojubo. Please go ahead.

[Nkem Ojougboh, Head - IR at Super Group]

Good morning, everyone, and thank you for joining us today to discuss Super Group's results for the 2025. During this call, Super Group may make comments of a forward looking nature that are subject to risks, uncertainties and other factors discussed further in its SEC filings that could cause the actual results to differ materially from historical results or from the company's forecast. Assumes no responsibility to update forward looking statements other than required by law. On today's call, Supergroup may refer to certain non GAAP financial measures. These non GAAP financial measures are in addition to and not a substitute for measures of financial performance prepared in accordance with GAAP.

[Nkem Ojougboh, Head - IR at Super Group]

Super Group has provided a reconciliation of the non GAAP financial measures to the most comparable GAAP figures in the press release issued yesterday and available on the Investor Relations page of Cipicool's website. Cipicool recommends that investors refer to a supplementary presentation posted to the company's website. Today, I'm joined by Neil Meenakshi, Chief Executive Officer and Linda Van Vijk, Chief Financial Officer. With that prepared remarks, we'll open the call for questions. And now I'd like to turn the call over to Nick.

[Neal Menashe, CEO & Director at Super Group]

Thank you, Inc. Good morning, everyone, and welcome to Super Group's second quarter twenty twenty five earnings call. Today, we are thrilled to report another landmark quarter. Our success stems from a continued focus on product and cost as well as momentum in key regions. We are reshaping our global presence by exiting The U.

[Neal Menashe, CEO & Director at Super Group]

S. While growing in our core markets. In addition, we are scaling our tech platform and delivering top tier products. Before we jump into the financial results, we'd like to share some important updates. First, we are excited to have hired Super Group's first Group Chief Technology Officer.

[Neal Menashe, CEO & Director at Super Group]

This appointment reflects our commitment to innovation, operating efficiencies and synergies across all platforms. Second, on May 13, we announced the appointment of Deloitte, an external auditor, a big four auditor that we expect will assist Supergoop through continued growth. Third, on July 8, we announced our intention to exit The U. S. High gaming market.

[Neal Menashe, CEO & Director at Super Group]

This move supports our ongoing focus on capital discipline and long term profitability. We thank all Digital Gaming Corporation employees for their contributions over the past few years and for the professionalism throughout this transition. Turning now to our numbers for Q2. We exceeded our own expectations for both total revenue and adjusted EBITDA for Q2 twenty twenty five, setting new quarterly records for Super Group. The group generated a record total revenue of $579,000,000 up 50% year over year.

[Neal Menashe, CEO & Director at Super Group]

Group adjusted EBITDA also reached an all time high of $157,000,000 representing 78% year over year growth and a robust margin of approximately 27%. This demonstrates our significant operating leverage at scale. The exceptional quarter was driven by strong sports outcomes, smarter pricing and continued traction of BET Builder, our innovative parlay product, and robust casino acquisition and retention. Growth was further supported by strong wagering activity, with sports betting wages up 15% and casino wages up 24 year over year, largely due to prioritizing more profitable markets. Let's now explore our territories.

[Neal Menashe, CEO & Director at Super Group]

Europe's revenue surged 53% year over year, with The U. K. Leading the charge, up 83%. This incredible growth was supported by regulatory clarity, enhanced product and marketing experience and solid contribution from both Betway and Spin brands. Spain and Ireland also saw solid growth.

[Neal Menashe, CEO & Director at Super Group]

In Spain, we expect the momentum to continue with the implementation of our new loyalty program, SuperClip. Germany was the primary headwind with the revenue down due to tighter regulatory restrictions and our strategic pullback in marketing spend. Despite this, we successfully viewed Germany EBITDA year over year, reflecting our rigorous cost management and operating resilience. Moving on to Africa. We saw growth of 59% year over year, with broad based strength across all markets except for Nigeria.

[Neal Menashe, CEO & Director at Super Group]

Ghana stood out, growing a massive 63% year over year, thanks in part to our blessed influencer product and currency tailwind. South Africa grew 31% year over year. Botswana, which only launched in February, also delivered remarkable growth. Its contribution to Africa's revenue rose tenfold to 4.5% in the current quarter. Superzoop maintained podium position in seven of the eight African markets that we are in.

[Neal Menashe, CEO & Director at Super Group]

North America grew 23% year over year. Canada, not including Ontario, increased 22%. Growth was supported by an increase in deposit and strong customer retention, but the performance in June was negatively affected by gaming server consolidation. Ontario delivered 5% year over year growth despite ongoing elevated marketing spend from competitors. Growth in the province, while still below our expectations, was a result of better digital marketing and continued customer engagement.

[Neal Menashe, CEO & Director at Super Group]

In The U. S, revenue was up 112% year over year. We will address our U. S. Exit in a moment.

[Neal Menashe, CEO & Director at Super Group]

APAC faced a challenging quarter, revenue down 6% year over year, this was still an improvement from last quarter's 13% year over year decline. New Zealand was down 13 due to currency and broader macroeconomic headwinds. We also consolidated technology in May, which contributed negatively, but we believe we will ultimately save costs here. We are working to mitigate the impact of various marketing restrictions to position this business for long term success. Zooming back out, we achieved the highest quarterly EBITDA in Super Glue's history, underscoring our powerful operating leverage.

[Neal Menashe, CEO & Director at Super Group]

As we scale in more markets, we are capturing greater margin on every bit of revenue, hence the record margin of 27%. This margin expansion is a direct result of our gameplay, aggressively reinvesting in high performing markets, maintaining a disciplined cost base, improving our product and process efficiencies, including the strategic implementation of AI and driving marketing effectiveness. You can see this in our lower marketing ratio in the quarter despite higher waging activity and customer growth. We expect these dynamics to continue into the second half of the year, reinforcing our ability to deliver super growth at scale. As part of our high return investment philosophy, we have made the difficult but necessary decision to proactively exit The U.

[Neal Menashe, CEO & Director at Super Group]

S. IGaming market. We are doing this despite delivering a record quarter with EBITDA improving to a 5,000,000 loss in Q2 twenty twenty five compared to nearly twice that in Q1 twenty twenty five. Changing dynamics in The U. S.

[Neal Menashe, CEO & Director at Super Group]

Market, including the recent tax increase in New Jersey, led us to this decision. As part of this exit, we anticipate a onetime restructuring cash cost of approximately $15,000,000 and we're actively working to reduce the cash inflow. We are incredibly pleased with our operating metrics performance this quarter. We hit a record 5,500,000 average unique monthly active customers, representing 21% year over year growth. Total sports wagering was also exceptional, hitting $958,000,000 for the quarter, up 15% year over year.

[Neal Menashe, CEO & Director at Super Group]

Our sports book margin also improved from 12.6% in Q2 twenty twenty four to 13.9% in Q2 twenty twenty five. Even more impressive, wages grew even though the Football Club World Cup was not expected to be as big a door as last year's Euro and Copper America event. Our balance sheet remains strong. We ended the quarter with $393,000,000 in unrestricted cash and no debt. As a reminder, we declared a regular cash dividend of $04 per share in June, bringing our total shareholder dividend for the 2025 to $08 per share.

[Neal Menashe, CEO & Director at Super Group]

In the last twelve months, we have returned $166,000,000 to shareholders, including $20,000,000 paid out in the past quarter, once again demonstrating our robust free cash flow generation and stringent capital allocation. Today, we are raising the full year 2025 ex U. S. Adjusted EBITDA guidance to between $500,000,000 to $510,000,000 from our previous expectations of greater than $418,000,000 This $25,000,000 midpoint uplift reflects focused cultivation of our market. Subject to the final phase of U.

[Neal Menashe, CEO & Director at Super Group]

S. Closure, we expect group adjusted EBITDA of between $470,000,000 and $480,000,000 inclusive of The U. S. Adjusted EBITDA loss of $15,000,000 Looking ahead, we see several compelling drivers for future upside, including a full calendar of global sporting events and a focus on enhanced trading and pricing, increased traction from our pet builder product, calculated marketing efficiencies, further strengthening casino and a revenue mix designed to support long term margin expansion. We're also investing in our technology platform, particularly in South Africa and Nigeria, and we are preparing to roll out Jackpot City in several markets.

[Neal Menashe, CEO & Director at Super Group]

We are also actively implementing and seeking new opportunities in the crypto space. These initiatives aim to position us for long term success as alternative payment methods and digital asset framework become more integrated into regulated gaming ecosystem. With a strong balance sheet, consistent free cash flow and an addition of a good CTO role to spearhead our technology initiatives, we remain confident that we are well positioned to reinvest in growth and pursue strategic opportunities across key areas of the business. In closing, Supergroup is powered by disciplined execution, scalable infrastructure and a data driven customer centric strategy. With strong financials, a clear plan and an exciting second half ahead, we believe that Supergroup will be able to generate further profitable growth and deliver long term value for our shareholders.

[Neal Menashe, CEO & Director at Super Group]

All of this is made possible by our super employees. I want to thank you to thank everyone, all of them for a superb Q2 achievement. I will now turn the call over to the operator to open the call up for questions. Operator?

[Operator]

Thank Our first question comes from Ryan Sigdahl with Craig Hallum Capital Group. You may proceed.

[Ryan Sigdahl, Senior Research Analyst at Craig-Hallum Capital Group LLC]

Hey, good day. Hey, good day, Neil and Galinda. Really nice results. Good to see the guidance raised again a month after you just raised it. So I want to stay kind on that topic.

[Ryan Sigdahl, Senior Research Analyst at Craig-Hallum Capital Group LLC]

If I just flow through kind of the awesome results in q two, it with the new guidance, it implies revenue and EBITDA are lower year over year in the second half of this year. I guess, given the momentum in the business, is there anything that besides conservatism that would cause for unusual compares, anything else you're seeing in the business subsequent quarter end? Kind of how was July? But just, I guess, anything to be concerned about within the business as you look and work your way through Q3 thus far?

[Neal Menashe, CEO & Director at Super Group]

It's Neel here. No, we definitely don't see it as a deceleration. We obviously continue to maintain a disciplined approach to our forecast. July was off to a great start, and it did really nicely. But mainly in our business, what happens, the new our new football season starts in August.

[Neal Menashe, CEO & Director at Super Group]

And that's the biggest driver of our sports calendar, one of the biggest drivers. And in that, you've got all the new teams selecting their new plan. So now what has to happen is we have to see how the rest of August goes in September with how the favors perform. Because as you know, our business is all about when the favors don't do so well, the sports results go our way. So from my point of view, that's it.

[Neal Menashe, CEO & Director at Super Group]

And we're super comfortable with the business retention, all the rates we've got, and I think you can see that in the growth.

[Ryan Sigdahl, Senior Research Analyst at Craig-Hallum Capital Group LLC]

Very good. Then U. S. Exit, you know, from my standpoint, smart move, reallocate resources where you have better structural advantages. But curious what made you make that decision now.

[Ryan Sigdahl, Senior Research Analyst at Craig-Hallum Capital Group LLC]

I mean, I think you said a 112 revenue growth in the in q two, but but why now? And then I understand the write off of assets, but, is there anything of value that can be sold here thinking your player database is possibly your market access licenses, etcetera? And then kind of last question, the cash costs are expected $50,000,000 I think, if I caught that right. You said 30,000,000 to $40,000,000 previously, so just kind of bridge what's changed in those expectations.

[Neal Menashe, CEO & Director at Super Group]

Okay. So I think on The U. S, obviously, it's always about the cost of revenue, the cost of doing business. It's not about just chasing the revenue. Can you make a profit on that revenue?

[Neal Menashe, CEO & Director at Super Group]

So we've always said there'd be high cost in The U. S. To make an operating profit, right? So obviously, some of the tax policies, regulation in those two states, New Jersey and Pennsylvania, we looked at it and said, actually, the opportunity cost of trying to support our product in that market to try to get to breakeven is actually much better to go into our other markets. And that's why you see we can take the whole dev team and it's operating on the Canadian product, The U. K. Product, the New Zealand product. So I think from our point of view, there's huge upside there.

[Neal Menashe, CEO & Director at Super Group]

We just couldn't see a path to profitability to be able to fill it up. And Linda will comment on the cost. Obviously, when it comes to the databases, are all over that trying to sell it, etcetera, and to work out on onerous contracts we've got there, who is it and what we do with those schemes.

[Alinda Van Wyk, CFO & Director at Super Group]

Thank you, Neil. The important thing also to note is that opposite post 2026, will see some cost savings, which is also into our profile of making sure our margin lifts where we don't see the cost profitability, as Neil just referred to. So we do foresee that we can deploy our resources of development cost into more profitable jurisdictions. We foresee a saving of in half year two of 2025 of around $60,000,000 and ongoing in 2026, which we've forecast already. And our general and administrative costs also will have a momentous impact on cost savings.

[Alinda Van Wyk, CFO & Director at Super Group]

So just to recap what we reported on in quarter two, even though the financial impact is at this point well contained, it did have impact on quarter two. We had a noncash impairment adjustment of $63,900,000 on impairment of the investment and then also some provisions on earnings contracts of around $22,000,000 which is mostly related to our market access agreement. And we do foresee that there would be a small leak into quarter three of around US6 million dollars just to close the market out.

[Ryan Sigdahl, Senior Research Analyst at Craig-Hallum Capital Group LLC]

Very good. Thanks guys. Good luck.

[Operator]

Thank you. Our next question comes from Jason Tilchun with Canaccord Genuity. Please proceed.

[Jason Tilchen, Director & Senior Equity Research Analyst at Canaccord Genuity Inc]

Congrats on the strong results. Thanks for taking my questions. One thing I'm curious about as it relates to marketing, can you share a bit more about some of the new channels that are driving strong returns? How much you would attribute that as to the reacceleration of customer growth you've seen over the past few quarters? And maybe a little bit about what type of impact you're seeing from that Williams F1 deal specifically so far this year?

[Neal Menashe, CEO & Director at Super Group]

Okay. So as you know, we've always looked at our marketing ratio to 23%, 24%. So again, it's not that we fixed on it. It's now becoming what is the dollar amount of how we're deploying it. So of course, we've gone into efficiency mode to say which element are we under, where are we over.

[Neal Menashe, CEO & Director at Super Group]

And we are redeploying some of the budget into different areas, if it's content, etcetera, different marketing channels. And I think that's making a great impact. On top of that is F1 was just one of our sponsorships. But the F1 is only about the sponsorship, it's about the content, it's about driving all this new traffic to us. So I think we are spearheaded across the globe trying to deliver all of this.

[Neal Menashe, CEO & Director at Super Group]

So going forward, it's not that we want to take the 23 and give our hoist days to people when it comes to our marketing as long as we are seeing the return of our marketing paying back and reinvesting into these core markets. So I think with that marketing, and we get even better and more effective at it, with the operating leverage that we get in all these countries, 80,000,000 extra of revenue we bring in, we bring down 50%, 60% to the bottom line. This is you see this operating leverage coming in perfect.

[Jason Tilchen, Director & Senior Equity Research Analyst at Canaccord Genuity Inc]

Very helpful. And one follow-up. The 14% gross hold for Sportsbook, curious how much of the year over year improvement you would attribute to sort of Sport outcomes being favorable in the quarter versus sort of structural improvements and parlay mix? And how much more opportunity do you see for improvement on that area going forward?

[Neal Menashe, CEO & Director at Super Group]

We are basically across the world all over the sports margin, right? And again, if you've got better parlay listed and parlay best that cost the sports margin, right? We've obviously got now full calendar of sporting events. We have probably improved the product, so and that helps. And we are keep working.

[Neal Menashe, CEO & Director at Super Group]

So I think, yes, in the past few months there and probably was some better sports result that you gained. You see that coming into the mix. But our new best builder product, all of that is starting to take effect. So we are constantly trying to improve this margin. But yes, when that all comes together, when the favorites aren't winning and you're going come together in our fourth quarter, this is where you see the uplift.

[Jason Tilchen, Director & Senior Equity Research Analyst at Canaccord Genuity Inc]

Great. Thank you very much.

[Operator]

Our next question comes from Jordan Belter with Citizens. You may proceed.

[Jordan Bender, Senior Equity Research Analyst - Gaming & Leisure at Citizens Capital Markets and Advisory]

Hi, everyone. Good morning. Maybe to just follow-up on that prior question. It's topic of discussion we have a lot here in The U. S.

[Jordan Bender, Senior Equity Research Analyst - Gaming & Leisure at Citizens Capital Markets and Advisory]

With some of the books of how high your gaming margins can get to over time. I guess, do you have any sense of like where that level might be, where the ceiling might be in terms of where you can get gaming margins, just given some of the parlay penetration you have across some of your markets? You.

[Neal Menashe, CEO & Director at Super Group]

When it comes to the parlay products, you can definitely get closer to the 20% level, right? But again, it all depends on how many bets are in it. So between our bet builder, our bet influencer, our risk management software, we've implemented across the board, we are hoping to increase it and offer more of these type of bets in our systems, right? Are going to be smart here. You can't just go over that.

[Neal Menashe, CEO & Director at Super Group]

You've got to balance between the single bets and the parlay bets, etcetera, but that's what we're working with. You understand in the casino business, it's a much more confident model. So we've learned how to do that really well. So now we add some other color into the sports side.

[Jordan Bender, Senior Equity Research Analyst - Gaming & Leisure at Citizens Capital Markets and Advisory]

Great. And I want to follow-up on crypto comment and implementation in some of your markets. Of bringing in just incremental customers who want to leverage that, how should we be thinking about that from a cost structure benefit? I'm thinking in terms of what does that help you with your payment processing costs.

[Neal Menashe, CEO & Director at Super Group]

So

[Neal Menashe, CEO & Director at Super Group]

I think, in the African side of our business, we sort of have a banking work there. I think crypto and coin can make a huge difference there. Because remember, banking is a really big cost of in Africa, especially for us onboarding our customers and then the payments across the continent. So for us, I think Crypto then also brings a different customer. As more regulation has come into the regulated market we operate in, that allows Crypto.

[Neal Menashe, CEO & Director at Super Group]

It's a different kind of customer. Again, a different genre, same way in the casinos, we have different genres of casino. Crypto is a different kind of customer. So obviously, that has been cost us. And that's what we are actively looking at, and that's got great ideas coming.

[Neal Menashe, CEO & Director at Super Group]

So long term play, at the long term plan, we're delighted about our strategy. And especially on the processing side, if we can do something clever there, which we've got some ideas on, that effectively, that would bring pure profits to the bottom line.

[Jordan Bender, Senior Equity Research Analyst - Gaming & Leisure at Citizens Capital Markets and Advisory]

Great. Thank you. Nice quarter.

[Operator]

Thank you. Our next question comes from Bernie Wathornan with Needham. You may proceed.

[Bernie Mcternan, Senior Analyst at Needham & Company]

Great. Thanks for taking the questions. Maybe just to start, could you Neil, you mentioned in your prepared remarks the competitive pressures in Ontario. Can you just describe exactly what those are? Who they're coming from?

[Bernie Mcternan, Senior Analyst at Needham & Company]

And is this ahead of the like do you think it's related to the Alberta launch that's coming up or unrelated?

[Neal Menashe, CEO & Director at Super Group]

No. I think listen, again, it's all about the marketing returns we see and the cost of acquisition in that market. But again, we have now got the extra results because of The U. S. Closure to focus on the product in that region.

[Neal Menashe, CEO & Director at Super Group]

You can see the rest of calendar is doing really well. And again, we don't want to overspend just overspend on the customers, but I think with the gamification stuff, we've got some, etcetera, that we'll start seeing good growth there. But again, as the rest of Canada has shown it, we then can now start implementing in Ontario.

[Bernie Mcternan, Senior Analyst at Needham & Company]

Understood. And you also mentioned hiring a new group CTO. Can you just talk about some of the benefits? And is this more about bringing products and capabilities? Or is this signaling another replatforming of the tech architecture? Just how should we think about it?

[Neal Menashe, CEO & Director at Super Group]

I think it's disciplined approach. It's looking across the board, you know, what we do. Our big thing is all about cost efficiencies. Cost efficiencies come out of the process efficiencies, come out come out of the tech stack, come out of our hosting costs, and all of these are what we view as cost centers that are we up to how do we get the best value paying for our bucks in those, and that's what EG has to do and help integrate all our platforms, etcetera, and understanding how we can scale. And as we scale, not scaling but scaling profitably and tie up our long term margin leverage on these platforms, working on these platforms and getting this up.

[Neal Menashe, CEO & Director at Super Group]

So I think on our side, it's taken us a long time to get this role, but I think it's super important for where we are heading.

[Bernie Mcternan, Senior Analyst at Needham & Company]

Understood. Thanks for taking the questions.

[Operator]

Thank you. Our next question comes from Jed Kelly with Oppenheimer. You may proceed.

[Jed Kelly, MD & Senior Analyst - Online Travel & Internet at Oppenheimer & Co. Inc.]

Hey, great. Thanks for taking my questions. Think recently, you did a platform upgrade or iGaming upgrade in South Africa and a couple of other countries. Can you give us a progress on how that's going? And then circling back to your cash balance, how do you plan to deploy that capital?

[Jed Kelly, MD & Senior Analyst - Online Travel & Internet at Oppenheimer & Co. Inc.]

Is it still maybe special dividends? Or is there any areas of M and A that might look attractive given some surrounding areas where you're making nice progress?

[Alinda Van Wyk, CFO & Director at Super Group]

On on product in thanks, Jeff, your question. On product in Africa, I think the it was just a upscale of what they currently have. The the benefit we had always in Africa that end to end software, so they they they in control of the entire ecosystem. And it was just a change over to a new version of that software. And we've seen we're doing that.

[Alinda Van Wyk, CFO & Director at Super Group]

We obviously can say a bit of all the enhancement that Neil alluded to, such as pet influencer, etcetera, which becomes a plug and play scenario and then faster rollout to other African countries, which is really a big benefit for the business. On cash, yes, with a strong balance sheet of unrestricted cash of $393,000,000, it gives us obviously the ability to operate and act very fast in case we need to do something. But our strategy remains consistent. We invest in high return opportunities. We return our capital via dividends, and we will remain to do that for the remainder of the year as the declared dividend at the moment is $04 a quarter.

[Alinda Van Wyk, CFO & Director at Super Group]

And we maintain flexible to make sure that when the opportunity does arise that we will act fast.

[Neal Menashe, CEO & Director at Super Group]

And I'll just add on the product in Africa. Remember, you add the product across every jurisdiction. And remember, we've launched our Katrina product. It's inside Africa that's now launching in other markets.

[Neal Menashe, CEO & Director at Super Group]

So that's another whole growth opportunity. So it's all about the scale and having the best product on the continent. That's what we have to keep doing. And in the rest of the world, we got to keep building our products to be the best it can be. And that's why over the past year, as we keep telling you guys, we have, over the past year, stopped certain markets across the world and now The U.

[Neal Menashe, CEO & Director at Super Group]

S. So the one we are in, we are holding on and can deliver with a great product, great marketing and obviously great profitability. I look forward to seeing you in Boston.

[Jed Kelly, MD & Senior Analyst - Online Travel & Internet at Oppenheimer & Co. Inc.]

Yes. Thank you.

[Operator]

Our next question comes from Mike Hickey with Benchmark Company. You may proceed.

[Mike Hickey, Equity Research Analyst at The Benchmark Company LLC]

Hey, Neil, Linda, Spencer, Inc. Thanks for taking our questions. Great quarter, guys. Nice to see another bump in your '25 guide as well. Neil, just on the EBITDA, extremely impressive.

[Mike Hickey, Equity Research Analyst at The Benchmark Company LLC]

Obviously, you mentioned '27 You look at your ex U. S. Business, it's 29% in Q2. Maybe there's some one time tailwinds, but doesn't seem to be anything maybe outside of the better hold really driving sort of a one off here. So I guess as your business continues this rapid growth, Even reflecting back on the second half of last year, you had sort of 25% average plus adjusted EBITDA margins.

[Mike Hickey, Equity Research Analyst at The Benchmark Company LLC]

How should we think about your margin growth over time? I think your last guide long term was plus 24%. Now it's 25%. Can we see 30% margins sort of over the long term? Thanks, guys.

[Neal Menashe, CEO & Director at Super Group]

Yes, sir. Of course, we can try and get to 30% margin. Again, it's all about the scale. It's the extra revenue. Remember, every bit of extra revenue keeps dropping at 50%, 60%.

[Neal Menashe, CEO & Director at Super Group]

So that's bringing this margin up. But again, it's about the sports result. Obviously, they make up 20% of our business, but 80% is casino. As we get more gamification into the product, that helps. So all these things are helping.

[Neal Menashe, CEO & Director at Super Group]

And I think you're seeing this margin up like the lithology being 27%, all the cost savings, the cost efficiencies are all starting to come through, right? We still have had some redundancy costs in H1. But as we get through that and get the right people in the right seats in our organization, and it's all about the growth and it's customer centric. So I think over time, listen, we would love to get to 30%. It's possible depending on the revenue here.

[Neal Menashe, CEO & Director at Super Group]

But again, 25%, 26% is where I think we got. And with all the sports results go our way, with the casino, then you get Q2 looking, looking up and looking.

[Mike Hickey, Equity Research Analyst at The Benchmark Company LLC]

Nice. Thanks, Neil. And then, obviously, Africa is a real important country, continent for you guys, and, you have put in position in a lot of markets there. Botswana is sort of new ish. Can you talk about your success there?

[Mike Hickey, Equity Research Analyst at The Benchmark Company LLC]

It seems like you guys, right from the start, have been doing incredibly well. And then I guess on the flip side, you're doing rolling up your sleeves in Nigeria, I guess, and trying to recalibrate and build share there. So I guess if you could kind of compare and contrast those two markets for us.

[Neal Menashe, CEO & Director at Super Group]

Okay. So I think Potswana is a great example of what happens when we enter with the right product, regulatory tailwinds and operational focus, high ROI market entry. Obviously, it's not a one stop. It's all those factors coming together, smart deployment of our strategy that's got proximity to South Africa, So the brand awareness from the one country blends into the other, and that's all about our global branding. Again, the only one that keeps underperforming for us is Nigeria.

[Neal Menashe, CEO & Director at Super Group]

But that, we've got some ideas for and we've got implementing. Our product is not right. We are key focus area again, but the rest of the countries are all starting to show great growth more growth. But remember, very importantly, our Jackpot City casino is now coming to most of those markets. Just takes time to be able to implement this across the continent. So Jackpot City is going to Ghana, Zambia, Botswan and Nigeria. So that's a huge another revenue stream. Plus, take the good so that we talked about before, the moving of the money, the processing fees. We are looking at everything under the hood across the world with all our expenses and how we become super efficient.

[Neal Menashe, CEO & Director at Super Group]

And with AI, now call centers, extent of the volume of customers we are getting through our product, how do we get to order them, how do we get them the best service, that is how we keep. Remember, all great to get these customers into your ecosystem. If you don't look after them in the ecosystem and they go to the back door, they're not pointing in the front door. You don't get the value. And with AI, we can get to more of them.

[Neal Menashe, CEO & Director at Super Group]

And that's what we think in our risk software and our call center software. So for us, it's a volume game, but it's trying to treat every customer as if they are our own investment.

[Mike Hickey, Equity Research Analyst at The Benchmark Company LLC]

Neil, last one from us. Nigeria staying on the country. Obviously, a tremendous amount of citizens there. I would imagine the TAM is significant. As you continue to sort of rewrite your script there and product, do you think you'd be in a position for that to be an area of growth, maybe outlier growth for you in 2026? Thanks, guys.

[Neal Menashe, CEO & Director at Super Group]

We would hope so. Again, it's got all our focus in our product right, in our offering right and different methods of payment there, etcetera. So that's what we have to do. But and so I think if we got to set elsewhere and we got the other countries still thinking, would say Nigeria, but it is one that we really would like to get it on the same facility as Botswana. Because as you said, the populations are from within another one.

[Operator]

Thank you. Our next question comes from the line of Clark Lumpkin with BTIG. You may proceed.

[Clark Lampen, Managing Director at BTIG]

Thanks for taking the questions. First one that I have is on the iGaming exit, more of a follow-up, I guess. But in terms of resource allocation, does this have a substantial sort of derivative impact on your plans, I guess, that's in Europe or U. K? Or you've talked for a while about expansion in Africa.

[Clark Lampen, Managing Director at BTIG]

Does that accelerate, I guess, your sort of plans in either continent? And then I guess this is a little bit more of a expense question if he's on. But in terms of retention excuse me, retention dynamics, have you guys seen any downtick I guess in sessions or engagement patterns in this sort of handoff period between football season and the Club World Cup? Or has it sort of been in July and early August where you guys want it to be? Thanks a lot.

[Neal Menashe, CEO & Director at Super Group]

Okay. So I'll go to Spencer on the call, but then we'll answer full one, Spencer. Basically, in The U. S, when we've got so now we've got the team who can work on our product. So remember what happened in our business.

[Neal Menashe, CEO & Director at Super Group]

The Africa product is by itself. So it is separate. So what The U. S. Exits allowed us to do is to work on the rest of the world.

[Neal Menashe, CEO & Director at Super Group]

This is Canada, UK, Germany, Spain, Ireland, etcetera, New New New Zealand, Mexico. It's those markets that where we've now got the results that can now add in the product. And remember, in those markets, we were profitable. So all that extra revenue that our product extra revenue we get in, we are super profitable on. So that's really what the key is, right?

[Neal Menashe, CEO & Director at Super Group]

So it doesn't affect the African model, and they are totally separate. Their case is they can't open up in every African market straight away either because you have to get your product right for each market. But again, when it comes to the data that you're referring to and what we've seen is, obviously, I think we were pleasantly surprised by the Club World Cup. And again, the Club World Cup was it wasn't expected to be a big betting betting sport, but it happened to be. And I think that just showed because there was nothing else on that this is and this is probably why FIFA pulled it in yet.

[Neal Menashe, CEO & Director at Super Group]

So for us, the good news is you have the Club World Cup, then you've got the Euros, then you've got World Cup next year. We are seeing more and more of these competitions in our down season, which is effectively when there isn't 14 results. I think it's helping there, and it definitely helped our July. But remember, what normally happens is casinos also start kicking in. But depending on which countries you are, there's also the holiday season.

[Neal Menashe, CEO & Director at Super Group]

So all of these things add up. So the more sports events there are, the more engagement we end up getting. So across the board, I think that helps. And I think the more events, some even F1 now, the more F1 and the more people are engaging in that. So across the world, it's all about the sports events and then, of course, our most importantly, our casino.

[Clark Lampen, Managing Director at BTIG]

Thank

[Operator]

Thank you. You. There are currently no questions. So I'll pass the conference back over to speaker Anton Algebo after this or digital remarks. Thank you.

[Neal Menashe, CEO & Director at Super Group]

Okay. Thanks, everyone, for joining today's call, and we're looking forward to meeting everyone on our Investor Day on September 18 in London and via webcast to present Super Group's ongoing strategic initiatives as well as key growth opportunities. Thanks again to all our staff at Super Group for a fantastic quarter two, and we're on with it.

[Operator]

Thank you, ladies and gentlemen. That concludes the Super Group Second Quarter twenty twenty five Earnings Webcast and Conference Call. Thank you for your participation. You may now disconnect your line.

Participants

Analysts

• Nkem Ojougboh, Head - IR at Super Group
• Neal Menashe, CEO & Director at Super Group
• Ryan Sigdahl, Senior Research Analyst at Craig-Hallum Capital Group LLC
• Alinda Van Wyk, CFO & Director at Super Group
• Jason Tilchen, Director & Senior Equity Research Analyst at Canaccord Genuity Inc
• Jordan Bender, Senior Equity Research Analyst - Gaming & Leisure at Citizens Capital Markets and Advisory
• Bernie Mcternan, Senior Analyst at Needham & Company
• Jed Kelly, MD & Senior Analyst - Online Travel & Internet at Oppenheimer & Co. Inc.
• Mike Hickey, Equity Research Analyst at The Benchmark Company LLC
• Clark Lampen, Managing Director at BTIG