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    SGHC
    Earnings call· Mar 2026(Q1 FY26)

    Super Group (SGHC) Q1 FY26 earnings call SGHC

    May 12, 2026 Source

    Executive summary

    Super Group Q1 FY26 — Record Revenue and Customer Growth Driven by Segment Strength

    Super Group delivered a record-breaking Q1 FY26, marked by strong revenue and customer growth across its newly segmented Africa and International operations. The company reaffirmed its full-year guidance, citing confidence in its disciplined execution, product enhancements, and the upcoming World Cup, while strategically integrating recent acquisitions and leveraging AI for efficiency.

    Highlights

    5

    • Record total revenue of $612 million, up 18% year-over-year.

    • Adjusted EBITDA grew 36% to $152 million, expanding margin to 25%.

    • Average monthly active customers reached a record $6.4 million, an 18% increase year-over-year.

    • Africa segment revenue surged 53% year-over-year, with adjusted EBITDA up 21% to $98 million.

    • International segment adjusted EBITDA grew 26% to $73 million, driven by strong European performance.

    Concerns

    2

    • February experienced challenging sports outcomes due to customer-friendly results, impacting margins.

    • The UK tax effect is anticipated to be a $30 million hit (6% pre-mitigation of 2025 EBITDA).

    Guidance & targets

    2
    CategoryTargetConfidence
    Full-year 2026 Total Revenue
    at least $2.55 billion
    high materiality
    High
    Full-year 2026 Adjusted EBITDA
    more than $680 million
    high materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Africa
    Delivered an excellent Q1 with strong revenue and adjusted EBITDA growth. Botswana continues to perform well, and actions in Nigeria are expected to strengthen growth.
    Adjusted EBITDA: $98 millionAdjusted EBITDA growth: 21% YoYSports wagers growth: 33% YoYCasino wagers growth: 36% YoY
    		—53%—$98 million
    International
    Saw revenue growth driven by strong performance in Europe, particularly the UK and Ireland. North America (ex-U.S.) also contributed positively, with New Zealand showing encouraging growth after a prior decline.
    Adjusted EBITDA: $73 millionAdjusted EBITDA growth: 26% YoYEuropean revenue growth: 18% YoYUK revenue growth: 29% YoYIreland growth: 13%North America (ex-U.S.) growth: 15%Canada (ex-Ontario) revenue growth: 16%Alberta revenue growth: 22% YoYRest of World revenue growth: 8%New Zealand growth: 6% YoY
    		—9%—$73 million

    Operational metrics

    15
    Total Revenue
    $612 millionup 18% year-over-year
    Q1 FY26

    Record total revenue for the quarter.

    Adjusted EBITDA
    $152 milliongrew 36% year-over-year
    Q1 FY26

    Adjusted EBITDA reached a record high.

    Adjusted EBITDA Margin
    25%compared with 22% in the prior year period
    Q1 FY26

    Margin expansion driven by strong acquisition and retention strategies.

    Average Monthly Active Customers (MAU)
    $6.4 millionup 18% year-over-year
    Q1 FY26

    Reached a record level, with March setting a new monthly high.

    Sports Wagers Growth
    23%YoY
    Q1 FY26

    Increased for sports compared to last year.

    Casino Wagers Growth
    20%YoY
    Q1 FY26

    Increased for casino compared to last year.

    Cash Balance
    $422 million20% increase year-over-year
    Q1 FY26

    Ended the quarter with a strong cash position despite shareholder returns.

    Shareholder Returns
    $152 million
    Q1 FY26

    Amount returned to shareholders during the quarter.

    Free Cash Flow Conversion
    75%remained strong
    Q1 FY26

    Reinforces confidence in increased dividend target.

    Minimum Quarterly Dividend Target
    $0.05increased
    Quarterly

    Increased, reflecting confidence in strong free cash flow conversion.

    Revenue from Annuity Streams
    80%
    Q1 FY26

    Driven by predictable, high-quality, and persistent revenue streams, primarily from the casino business.

    Sportsbook Trailing 24-month Average Margin
    13.1%
    Trailing 24-month

    Average across both international and Africa sportsbooks.

    UK Tax Impact
    $30 million6% pre-mitigation of 2025 EBITDA
    FY25

    Estimated hit from the new UK tax effect.

    Marketing Spend as % of Revenue
    around 22%
    Q1 FY26

    Disciplined marketing spend in the International segment.

    Marketing Spend as % of Revenue
    much lower
    Q1 FY26

    Lower in Africa due to jurisdiction and localization of marketing.

    Product announcements

    1
    ProductTypeDetails
    Super Coin consumer walletlaunch

    Deals & partnerships

    1
    ApricotAcquisition of intellectual property (IP) for the sportsbook and integration of development resources.

    The transaction closed at the end of February, resulting in Super Group owning the sportsbook IP. Over 100 development resources supporting the sportsbook were moved over to Super Group's team.

    Risks & headwinds

    3
    Challenging sports outcomesQ1 FY26 (February)

    February was a particularly challenging month for sports due to customer-friendly outcomes.

    Mitigation: Implemented targeted changes to materially improve margin resilience within promotional mechanics, pricing, and payout structures.

    UK tax effectStarting April 1 (Q2 FY26 onwards)

    Estimated 6% pre-mitigation impact on 2025 EBITDA, approximately $30 million hit.

    Mitigation: Pulling multiple levers, including operating leverage and managing marketing spend. Expect marketing rates to come down across the industry.

    Competitive environment in OntarioOngoing

    Increasingly competitive environment.

    Mitigation: Achieved a post-regulation record for new customers through retention and product enhancements.

    What to watch in Q2 FY26

    5

    World Cup Impact on Player Activity

    Q2/Q3 FY26
    CurrentQ1 FY26 momentum, 104 matches scheduled
    TargetUplift in player activity and revenue in Q2/Q3 FY26

    Why it matters

    The World Cup is a significant catalyst expected to drive customer engagement and revenue, impacting the company's full-year performance.

    How should we think about the potential uplift to both player activity and revenue during the tournament period.

    Q&A highlights

    8

    Why did management reaffirm guidance instead of raising it, given the strong Q1 performance?

    Management stated that they do not typically raise guidance this early in the year, emphasizing their focus on execution and delivering growth rather than finessing projections. They remain confident in their initial guidance.

    “We've never increased guidance at this stage of the year. It's just not something we do so early on in the year. We obviously are focused, as you know, on executing and delivering growth, and we're not finessing projections and guidance. It's really the simple.”

    asked by Michael Hickey · answered by Neal Menashe

    2 min read5 chapters

    Detailed Narrative

    01

    New Segment Reporting Structure

    Super Group introduced a new reporting structure comprising two segments: Africa and International. This approach aims to provide deeper insights into the distinct operating models and growth potential across its four regions. Africa encompasses all revenue generated on the African continent, while International includes all revenue generated outside of Africa, with executive responsibilities remaining unchanged.

    02

    Super Coin Consumer Wallet Rollout

    The phased rollout of the Super Coin consumer wallet commenced in mid-April with a soft beta launch for Bestway South Africa customers. The primary objective is to expand utility and gradually increase customer engagement across the ecosystem. A key milestone is anticipated late in the quarter with additional listings on OVEC and Vela, two of South Africa's largest exchanges, to enhance liquidity and accessibility.

    03

    Anticipated World Cup Impact

    Management expressed strong confidence in customer engagement during the upcoming World Cup, noting that 40% of the countries Super Group operates in are participating, representing almost 88% of its 2025 revenue. The tournament features 104 matches, a 63% increase from the 2022 World Cup, which is expected to drive significant customer activity and cross-sell opportunities into the casino business, with a typical cross-sell rate of 60% to 70%.

    04

    Strategic Acquisitions and AI Integration

    The Apricot transaction, which secured ownership of the sportsbook IP, closed at the end of February. This involved integrating over 100 development resources into Super Group's team, with expected cost savings and product enhancements in speed, flexibility, and efficiency. Additionally, the company is actively leveraging AI for risk control, development efficiency, and finance reconciliation, aiming for overall operational enhancement.

    05

    UK Tax Effect and Mitigation Strategies

    The UK tax effect, which became effective on April 1, is estimated to result in a $30 million hit, representing 6% of 2025 EBITDA pre-mitigation. Management is implementing multiple levers, including operating leverage and strategic marketing management, to mitigate this impact. The company expects marketing rates to adjust across the industry as competitors adapt to the new tax environment.

    AI-generated summary of the company’s earnings call. Not investment advice.