Super Group SGHC) (NYSE: SGHC reported a record start to 2026, with first-quarter revenue, customer activity, deposits and wagering all reaching new highs, executives said on the company’s earnings call.
Chief Executive Officer Neal Menashe said the quarter reflected “the strength of our strategy, our brand, and our people,” while Chief Financial Officer Alinda van Wyk said the company’s results showed the benefit of disciplined cost management, controlled marketing spend and operating leverage.
For the first quarter, Super Group reported total revenue of $612 million, up 18% year over year. Adjusted EBITDA rose 36% to $152 million, with margin expanding to 25% from 22% in the prior-year period. Average monthly active customers reached a record 6.4 million, up 18% year over year, with March setting a new monthly high of 6.5 million customers.
Total wagering increased 23% for sports and 20% for casino compared with last year, van Wyk said. The company ended the quarter with $422 million in cash, up 20% year over year, despite returning $152 million to shareholders, including a special dividend paid in February. Van Wyk also cited free cash flow conversion of 75% and noted that Super Group recently increased its minimum quarterly dividend target to $0.05 per share.
New Reporting Structure Highlights Africa and International Segments
Super Group introduced a new reporting structure consisting of two segments: Africa and International. Menashe said Africa includes all revenue generated across the African continent, while International includes revenue outside Africa. He said the updated structure is intended to give shareholders more insight into the operating drivers and growth potential of each unit.
Africa delivered revenue growth of 33% year over year in the quarter, while adjusted EBITDA rose 21% to $98 million. Sports wagers in the segment increased 33%, and casino wagers rose 36%. Menashe said Botswana continued to perform well and that he recently spent time with the company’s team in Nigeria, where he said actions underway should strengthen the growth profile as execution ramps up.
In response to an analyst question from Needham & Company’s Bernie McTernan, Menashe said Nigeria remains a priority because of its population size and improving currency conditions. “We have to, listen, double, triple our business out of there, at least try,” he said, adding that the company is working to get its product right in the market.
The International segment posted revenue growth of 9%, with adjusted EBITDA up 26% to $73 million. European revenue grew 18% year over year, led by a 29% increase in the U.K. Menashe said the U.K. performance was driven by market share gains, record customer acquisition, product improvements and a successful Cheltenham Festival. Ireland revenue rose 13%, with local regulation expected in the second half of the year.
In North America, excluding the U.S., revenue grew 15%. Canada excluding Ontario rose 16%, while Ontario achieved a post-regulation record for new customers. Alberta increased 22% year over year and remains on track for local regulation in July, Menashe said. Rest of World revenue increased 8%, with New Zealand up 6% after a decline in the prior quarter.
Casino Remains Core Revenue Engine as Sports Margins Improve
Menashe described Super Group’s casino business as a “super reliable, steady, and constant engine,” saying it accounts for about 80% of company revenue through what he characterized as predictable and persistent annuity-like revenue streams. He said the company has been improving content discovery, personalization, gamification and incentive management to support retention and profitable customer behavior.
On sports, Menashe said Super Group continues to strengthen trading and risk management ahead of the World Cup. The company implemented changes during the quarter to improve margin resilience through promotional mechanics, pricing and payout structures. He said those changes proved valuable in February, when sports results were particularly favorable for customers.
Asked by BTIG analyst Clark Lampen whether stronger sports trading and pricing could produce higher margins in favorable months, Menashe said the company expects improved margins when favorites are not winning or are drawing. He said the trailing 24-month average sports margin is about 13.1%, with Africa higher and International lower.
World Cup Seen as Engagement Catalyst
Several analysts asked about the upcoming World Cup, which executives framed as a significant engagement opportunity. StoneX analyst Michael Hickey noted data from the company showing that 40% of the countries where Super Group operates are participating in the tournament, representing nearly 88% of 2025 revenue.
Menashe contrasted this year’s tournament with the 2022 World Cup, noting that the upcoming event will take place in June and July and include 104 matches, compared with 64 matches in 2022. He said the additional matches should increase engagement, though outcomes in early rounds could affect sportsbook margins depending on whether favorites win, draw or lose.
Menashe said the company’s focus will be on sports engagement and cross-selling customers into casino. He said sports-to-casino cross-sell is typically in the range of 60% to 70%.
Guidance Reaffirmed Despite Strong Start
Super Group reaffirmed its full-year 2026 guidance, calling for total revenue of at least $2.55 billion and adjusted EBITDA of more than $680 million. Van Wyk said the company is entering the rest of the year with confidence and that the second quarter is tracking positively, supported by growth opportunities and the World Cup calendar.
Asked why the company did not raise guidance after a strong first quarter, Menashe said Super Group has not historically increased guidance this early in the year. “We were confident about those numbers when we told them to you in February,” he said. “Now, after Q1, we remain confident.”
Responding to Craig-Hallum analyst Ryan Sigdahl, Menashe said the company had not seen any deceleration early in the second quarter. He reiterated that the business is heavily weighted toward casino, which he described as stable and consistent.
Executives also addressed the impact of U.K. tax changes that took effect April 1. Van Wyk said the company had previously estimated a pre-mitigation impact of about 6% of 2025 EBITDA, or roughly $30 million, but said Super Group is using multiple levers to mitigate the impact, including operating leverage and marketing discipline.
Product, AI and Capital Allocation Updates
Menashe said Super Group closed the Apricot transaction at the end of February, giving the company ownership of the sportsbook intellectual property. He said development resources supporting the sportsbook are moving into Super Group, with more than 100 people expected to join its structures over time. He said the company expects cost savings over time, while emphasizing speed, flexibility and product improvement.
Van Wyk said artificial intelligence is being used as a tool in areas including risk and fraud management, development, finance reconciliations, accounts and disclosures. She said AI is enhancing efficiency, but the company is working with its technology leadership to establish appropriate boundaries and maintain discipline.
On M&A, van Wyk said Super Group does not need acquisitions to hit its plan, which is based on organic growth. She said the company remains selective and would consider bolt-on opportunities that improve the business, including technology, product or marketing efficiencies. Menashe added that the company is not willing to overpay for assets.
Menashe also discussed ZAR Supercoin, saying the company began a beta rollout in South Africa and is focused on adding utility and addressing processing fees, which he described as one of the largest expenses after taxes in Africa. He said adoption will take time and that Super Group will consider other African markets after learning from the South African rollout.
About Super Group SGHC) (NYSE: SGHC
Super Group NYSE: SGHC is a global sports betting and iGaming operator that offers online wagering and gaming solutions under well-known brands such as Betway and Spin. The company’s technology platform supports fixed-odds and in-play sports betting, virtual sports, eSports wagering and a diverse suite of casino games, including slots, table games and live dealer experiences. Super Group’s digital infrastructure is designed to deliver a seamless, secure user experience across desktop and mobile devices.
The company holds operating licenses in multiple regulated jurisdictions, including the United Kingdom, Malta, Italy, Spain and selected states in the United States.
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