Super Group said it generated net gaming revenue of $762.6 million in the first six months of the year. The comapny is the parent of the online betting firm Betway.
The gaming operator added its earnings before interest, taxes, depreciation and amortization (EBITDA) for the first half of 2021 “is well within management’s expectations,” positioning the company to meet previously disclosed financial guidance for the year.
When Super Group announced a merger with special purpose acquisition company (SPAC) Sports Entertainment Acquisition Corp. (NYSE:SEAH) in April, it forecast 2021 EBITDA of $350 million on net gaming revenue of $1.5 billion.
Based on management’s view of the business today, they remain comfortable with these full-year 2021 financial projections,” according to a statement.
The operator’s first-half net gaming revenue of $762.6 million is slightly less than half of $1.5 billion. But sports wagering activity typically accelerates later in the year with the arrival of football season.
Super Group SPAC Update
Super Group CEO Neal Menashe also provided an update on the deal with Sports Entertainment Acquisition.
“We plan to submit our registration statement on Form F-4, filing by the end of August, and then update investors with additional financial details once we have completed our comprehensive financial review of the first half of 2021,” he said in the statement.
When the blank-check deal was announced in April, the second half of this year was given as the time frame for closing the transaction and Super Group making its debut as a standalone public company. The operator will trade on the New York Stock Exchange under the ticker “SGHC.”
Super Group expects to have $200 million in cash on its balance sheet and no debt when the merger is completed. It previously forecast 2022 EBITDA of $420 million on sales of $1.7 billion.
Betway US Outlook
Betway is based in Malta. While the brand isn’t yet as familiar to US sports bettors as some of the others in the field, the operator is taking steps to change that. Super Group is acquiring Digital Gaming Corporation (DGC) to bolster Betway’s US footprint.
“DGC has the exclusive right to use the Betway brand in the US, and has secured market access for online sports betting and gaming in up to an initial 10 U.S. states, including Pennsylvania, New Jersey, Colorado, Indiana, and Iowa. DGC’s first bet in the US was taken in March 2021,” according to the statement.
Betway has more than 60 brand agreements with athletes, leagues, and teams around the world. In the US, such accords include the NBA’s Brooklyn Nets, Chicago Bulls, Golden State Warriors, and the Los Angeles Clippers. The operator also a multi-year partnership with the NHL.