Super Group SGHC) (NYSE: SGHC reported record second-quarter results for 2026, with revenue, adjusted EBITDA, deposits and wagering activity reaching new highs as customer engagement increased during the FIFA World Cup.
Total revenue rose 18% year over year to $684 million, while adjusted EBITDA increased 30% to $204 million. The company’s adjusted EBITDA margin expanded to 30% from 27% in the prior-year period. Average monthly active customers reached 6.2 million, up 13% from a year earlier.
Chief Executive Officer Neal Menashe said the results reflected strong underlying momentum across the business, improved sports pricing and risk management, growth in parlay betting, and a focus on retaining customers that produce sustainable long-term value.
World Cup Supports Acquisition and Cross-Sell
Menashe said the World Cup drove customer acquisition and engagement, with new customer acquisition more than tripling compared with the prior World Cup period. Customers placed more than $166 million in football bets during the tournament, including approximately $100 million wagered on World Cup matches.
Super Group’s sports margin reached a record 17% in the quarter. Menashe attributed the performance to improvements in pricing and risk management, continued parlay growth, and the quality of the company’s customer base. He said the company expects combined sports margins across Africa and international operations to fall within a 13% to 14% range over time.
The company also reported strong casino cross-sell from World Cup-acquired customers. Menashe said nearly half of new sportsbook customers cross-sold into casino products, while later citing a 53% casino-wager participation rate for the World Cup cohort, compared with 23% for the 2022 cohort.
While the company reported a sequential decline in monthly active users, Menashe said management did not view that trend as a concern. He pointed to normal seasonality, including a period with little soccer activity before the World Cup, as well as tax effects in two smaller African markets that affected lower-value customer counts. Revenue continued to grow sequentially, he said.
Africa Drives Growth; International Faces Tax Effects
Africa remained a major growth contributor. Revenue in the region increased 36% year over year, while adjusted EBITDA rose 47% to $133 million. Sports wagering increased 5% and casino wagering grew 28% from the prior-year period.
Super Group expects to launch in Namibia during the fourth quarter and is continuing work to expand the functionality and accessibility of its ZAR Supercoin wallet. Menashe said the company is building toward broader adoption and remittance capabilities in key African markets.
International revenue increased 7% year over year, or 12% excluding the U.S., while adjusted EBITDA held steady at $84 million. Management said underlying growth was partially offset by U.K. tax effects and the short-term cost of promotional campaigns.
In Europe, revenue increased 22%, led by a 34% gain in the U.K. and 18% growth in Ireland. The U.K. recorded a revenue high in May, according to Menashe. Super Group also expects to introduce slots in Germany during August, completing its full product offering in that market.
North America excluding the U.S. grew 9%, with Canada excluding Ontario up 11% on customer retention and product improvements. Alberta revenue increased 8% year over year ahead of the province’s regulated-market launch on July 13. Management said it is using a phased rollout approach in Alberta, with particular attention to customer experience and retention among higher-value customers.
Revenue in the rest-of-world segment increased 6%, led by 14% growth in New Zealand despite lower marketing spending. The company said it is preparing for local licensing and a transition to a regulated market there.
Marketing, Costs and Integration Efforts
Chief Financial Officer Alinda van Wyk said marketing expense was down roughly 1% to 2% year over year, reflecting the usual seasonal pattern in the second quarter and lower-than-expected World Cup spending due to unfavorable time zones for many customers. She said Super Group expects marketing spending to return to approximately 21% to 22% of revenue during the remainder of 2026.
Van Wyk also addressed a sequential increase in adjusted general and administrative expense to roughly $100 million. About 40% of the increase was associated with one-time costs, including audit alignment work and technology and infrastructure expenses, she said. The company also brought the Apricot operational business, including about 100 employees, and the E-Market marketing business into its operations. Van Wyk said G&A should stabilize toward the low-$90 million range by the end of the quarter.
Menashe said Super Group has consolidated its call centers and risk operations onto one technology stack. The company is also applying product, pricing and marketing capabilities across its African and international operations, which management said is contributing to margin improvement.
Guidance Raised and Capital Deployment Under Review
Following its first-half performance and what Van Wyk described as a solid start to the third quarter, Super Group raised its full-year outlook. The company now expects revenue of more than $2.6 billion and adjusted EBITDA of more than $710 million for 2026.
Free cash flow conversion was 68% during the first half, and Super Group ended the quarter with $548 million of cash, up 39% from a year earlier. The company returned $25 million to shareholders during the quarter and $218 million over the last 12 months.
Management said it recognizes it has excess cash and is evaluating ways to deploy capital while preserving balance-sheet strength and flexibility. Van Wyk said priorities remain organic growth opportunities, dividends, buybacks and selective bolt-on acquisitions. Menashe said the company would remain disciplined on mergers and acquisitions and would not overpay.
Super Group also announced a partnership making Betway the principal partner and exclusive global betting partner of Manchester United for the upcoming English Premier League season. Menashe said the arrangement fits the company’s long-term brand strategy, particularly in Africa, where football is its largest betting category. He said the partnership is included within the company’s marketing spending framework.
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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