Overall Q3 revenue fell to $315.8 million (€307.8 million), a modest decrease of nearly 2% from the $321.2 million (€312.6 million) recorded in Q3 2021. The minor decline was overshadowed, however, by a sharp 30.8% YoY drop in net third-quarter profit to $35.9 million (€34.8 million).
Overall results from Betway's legal sports betting operations, however, saw quarterly revenue rise 5% YoY to $173.2 million, accounting for 54% of Super Group's net revenue in Q3.
This also outperformed the 46% generated by the company's Spin division, which reported an 8% yearly decline in quarterly revenue to $142.6 million.
"Super Group’s online-only business model and ongoing focus on improved customer experience through enhanced global technology platforms continues to ensure optimal customer engagement and value," said Super Group CEO Neal Menasche. "Together with effective investment in our brands and efficient allocation of our capital, this provides us with a sound path for long-term growth."
In addition to being outperformed by Betway, Super Group attributed the overall drop in revenue to a decline in net revenue from its Spin online casino brand and brand license fee income that was only "partially offset by an increase in sports betting net revenue."
Ontario segment "profitable"
A highlight of the earnings report was the performance of Betway in Ontario, which transitioned from the grey market and into a regulated sportsbook in Canada's most populous province.
During the Q3 earnings call, Menasche was enthusiastic about positive early indications from Betway's mobile betting activity in Ontario.
"Our performance there has been in line with our expectations, including the excavation and engagement of historic Ontario customers with the new Ontario-specific platform," he said. "Overall, Canada continues to perform and remains profitable for us."
Menasche added that Super Group has also converted a "high percentage" of the legacy (dot.com) customers and kept them engaged in the new platform.
More expansion coming as DGC purchase closes
The gains in the sports betting division were seen as a reason for optimism on the part of Super Group as it looks forward to completing its acquisition of Digital Gaming Corporation (DGC) in January 2023.
"Betway is currently live in seven states through DGC with Louisiana and Ohio expected to launch during the first quarter of next year," said Menasche. "Both will be launching on Betway's global tech, taking the total number of states using this platform up to four."
Folding DGC into its operations will allow Super Group to establish a major beachhead in the U.S. sports betting market where DGC has access to 12 states, including New Jersey and Pennsylvania — two of the largest American segments.