Super Group has reported a 1% increase in revenue to €338.5m, driven by a 1% decrease in LfL revenue and a €6.5m contribution from the US (inferred).
Geographically, performance has been mixed:
Super Group’s resilient group performance demonstrates the powerful portfolio effect of a global presence and long operational experience. However, outside of Africa the group has tended to be on the wrong side of regulatory change, not helped by the (predictable) timing of Ontario, German and Netherlands legislation coming just after SPAC, as well as the sheer cost of trying to do B2C business in the US (also predictable).
The extent to which Super Group can generate greater secular growth from emerging markets greater than the sum of regulatory upheavals and mounting costs is an open question that is likely to be decided by the quality of operations management, in our view. A harder question to answer is the extent to which Super Group continues to operate as a .com business befitting its pedigree; given the broad spread of geographies in which Super Group is active, the hidden operational risks could be greater than the more visible strategic risks, in our view.