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    SGHC
    Earnings call· Jun 2026(Q2 FY26)

    Super Group (SGHC) Q2 FY26 earnings call SGHC

    Aug 5, 2026 Source

    Executive summary

    Super Group Q2 FY26 — Record Revenue and EBITDA Driven by World Cup and Operational Efficiencies

    Super Group delivered record Q2 FY26 results, driven by strong World Cup engagement, operational efficiencies, and robust performance in Africa. The company raised its full-year guidance, highlighting disciplined execution and a focus on high-return markets. Management is actively evaluating capital allocation strategies given excess cash and a strong balance balance sheet, while also managing sequential MAU declines attributed to seasonality.

    Highlights

    5

    • Record total revenue of $684 million, up 18% year-over-year.

    • Adjusted EBITDA grew 30% to $204 million, with margin expanding to 30%.

    • New customer acquisition increased more than threefold compared with the prior World Cup period.

    • Africa revenue grew 36% year-over-year, and adjusted EBITDA increased 47% to $133 million.

    • Sports margin hit a record 17% for the quarter, reflecting improved pricing and risk management.

    Concerns

    2

    • Average monthly active customers (MAUs) reached 6.2 million, up 13% year-over-year, but were down sequentially due to seasonality and tax effects in smaller African markets.

    • G&A expenses stepped up sequentially from $90 million to $100 million, with 40% attributed to one-off audit alignment and infrastructure costs, as well as recent acquisitions.

    Guidance & targets

    7
    CategoryTargetConfidence
    Full-year 2026 total revenue
    more than $2.6 billion
    high materiality
    High
    Full-year 2026 adjusted EBITDA
    greater than $710 million
    high materiality
    High
    Marketing spend as % of revenue
    around 21% to 22%
    medium materiality
    Medium
    Combined sports margins
    between 13% to 14%
    medium materiality
    Medium
    New country launches per year
    1 to 3 countries
    low materiality
    Medium
    Namibia launch
    expected launch
    medium materiality
    High
    Adjusted EBITDA margin
    closer to the 30%
    high materiality
    Medium

    Segment performance

    11
    SegmentRevenueYoYQoQMargin
    Africa
    Delivered another outstanding quarter, driven by broad-based growth across the region.
    Adjusted EBITDA growth: 47% YoYSports wages: up 5% YoYCasino wages: up 28% YoY
    		—36%—$133 million
    International (ex-U.S.)
    Strong underlying growth offset by U.K. tax and short-term cost of strategic generosity key campaigns.
    		—12%——
    International (total)
    Adjusted EBITDA held steady.
    		—7%—$84 million
    Europe
    Led by U.K. and Ireland.
    		—22%——
    U.K.
    Delivered record revenue in May, supported by significant product improvements and efficient marketing post-tax increase.
    Record revenue in May
    		—34%——
    Ireland
    Revenue up year-over-year.
    		—18%——
    North America (ex-U.S.)
    Overall growth in the region.
    		—9%——
    Canada (ex-Ontario)
    Supported by strong retention and continued product enhancement.
    		—11%——
    Alberta
    Revenue up year-over-year, ahead of the province's regulated market launch on July 13.
    		—8%——
    Rest of World
    Led by strong performance in New Zealand.
    		—6%——
    New Zealand
    Grew despite reduced marketing spend; preparing for local licensing and seamless transition to a regulated market.
    		—14%——

    Operational metrics

    18
    Total revenue
    $684 millionup 18% year-over-year
    Q2 2026

    Record total revenue for the quarter.

    Adjusted EBITDA
    $204 milliongrew 30% year-over-year
    Q2 2026

    Record adjusted EBITDA for the quarter.

    Adjusted EBITDA margin
    30%compared with 27% in the prior year period
    Q2 2026

    Expanded margin due to disciplined cost management and operational efficiencies.

    Average monthly active customers (MAUs)
    6.2 millionup 13% year-over-year
    Q2 2026

    Headline number for MAU is down sequentially, but not a concern due to seasonality and tax effects in smaller African markets.

    Total wagering (Sports)
    up 8%
    Q2 2026

    Increased wagering activity.

    Total wagering (Casino)
    up 15%
    Q2 2026

    Increased wagering activity.

    Free cash flow conversion
    68%
    H1 2026

    Strong free cash flow conversion.

    Cash balance
    $548 millionup 39% year-over-year
    Q2 2026

    Closed the quarter with a robust cash position, even after returning capital to shareholders.

    Capital returned to shareholders
    $25 million
    Q2 2026

    Returned to shareholders this past quarter.

    Capital returned to shareholders (LTM)
    $218 million
    LTM Q2 2026

    Total capital returned over the last 12 months.

    Sports margin
    17%
    Q2 2026

    Hit a record for the quarter, reflecting improved pricing and risk management, growth of parlays, and quality of customer base.

    New customer acquisition (World Cup)
    increased more than threefoldcompared with the prior World Cup period
    Q2 2026

    World Cup drove exceptional customer acquisition.

    Football bets placed (World Cup)
    over 166 million
    Q2 2026

    Total football bets placed during the tournament.

    World Cup matches bets
    100 million~60% of total football bets
    Q2 2026

    Bets specifically on World Cup matches.

    Casino cross-sell (World Cup new customers)
    50%vs 23% in 2022 cohort
    Q2 2026

    Successful cross-sell into casino from new World Cup customers.

    G&A expenses
    $100 millionup from $90 million sequentially
    Q2 2026

    Sequential increase due to one-off costs and recent acquisitions.

    Marketing spend
    down around 1%year-over-year
    Q2 2026

    Seasonality plays a role as Q2 is normally a quieter period for marketing.

    Expected G&A expenses
    low $90 million
    Q3 2026

    Expected stabilization of G&A expenses after one-off costs and acquisition impacts.

    Product announcements

    1
    ProductTypeDetails
    Slots in Germanylaunch

    Deals & partnerships

    3
    Manchester UnitedPrincipal partner and exclusive global betting partner

    Partnership for the upcoming English Premier League season, enhancing Betway's profile across United's worldwide fan base, especially in Africa.

    Apricot businessOperational business acquisition

    Acquisition of an operational business, integrating approximately 100 headcount into Super Group.

    eMarketSmall marketing company acquisition

    Acquisition of a small marketing company.

    Risks & headwinds

    4
    Sequential MAU declineQ2 2026

    down sequentially

    Mitigation: Attributed to normal seasonality and tax effects in smaller African markets; expectation of customer resumption in Q3 and Q4 with new EPL season and Man U partnership.

    U.K. tax increaseQ2 2026 onwards

    impact on the EBITDA at this point in time in the international results

    Mitigation: Optimizing marketing and operations to improve efficiency and deliver better margins in the jurisdiction.

    Alberta regulated market launchJuly 2026 onwards

    Alberta tax is from July onwards

    Mitigation: Approaching rollout in a disciplined and phased manner to support sustainable long-term growth, expecting a more rational competitive environment than in Ontario.

    G&A expense increaseQ2 2026

    step up this quarter sequentially from about $90 million to $100 million

    Mitigation: 40% of the increase due to one-off costs (audit, infrastructure) and recent acquisitions; expected to stabilize to low $90 million by end of Q3.

    What to watch in Q3 FY26

    5

    MAU recovery

    Q3 and Q4 FY26
    Current6.2 million (down sequentially)
    TargetResumption of customer growth

    Why it matters

    Indicates effectiveness of World Cup acquisition and new EPL season in driving customer engagement.

    Overall, we expect resumption of customers in Q3 and Q4, in line with prior quarters on the back of the new EPL season, of course, the Man U new partnership.

    Q&A highlights

    8

    Why were MAUs down sequentially and marketing spend lower, given World Cup engagement?

    Management explained MAU seasonality due to World Cup timing and tax effects in smaller African markets, emphasizing focus on profitable, persistent revenue per customer. Marketing spend was lower in Q2 due to seasonality, with expectations to return to 21-22% of revenue for the remainder of the year.

    “Overall, we expect resumption of customers in Q3 and Q4, in line with prior quarters on the back of the new EPL season, of course, the Man U new partnership.”

    asked by Jed Kelly · answered by Neal Menashe

    2 min read6 chapters

    Detailed Narrative

    01

    World Cup Impact & Customer Engagement

    The FIFA World Cup drove exceptional customer acquisition, increasing more than threefold compared to the prior World Cup period, with over 166 million football bets placed. Approximately 60% (100 million) of these bets were on World Cup matches. The company achieved a 50% cross-sell rate into casino from new World Cup customers, a significant improvement from 23% in 2022, demonstrating effective customer ecosystem management despite non-ideal time zones for many customers.

    02

    Strategic Partnerships & Brand Strength

    Super Group announced a landmark partnership with Manchester United, making Betway the club's principal partner and exclusive global betting partner for the upcoming English Premier League season. This strategic move, alongside existing partnerships with Arsenal and Man City, positions Betway as the exclusive global betting partner for the top three EPL teams. This enhances brand profile and supports sustainable customer growth, particularly in Africa where football is the number one bet-on sport.

    03

    Operational Efficiencies & Margin Expansion

    The company realized significant operational efficiencies by consolidating call centers and tech stacks, which contributed to a record sports margin of 17% and an adjusted EBITDA margin expansion to 30%. These improvements are seen across trading, marketing, processing, and technology, enabling revenue to grow faster than the cost base. Management highlighted that these efficiencies are starting to kick in across the board, exceeding internal expectations.

    04

    Capital Allocation Strategy

    With a strong balance sheet and $548 million in cash, management is actively evaluating capital allocation strategies to maximize long-term shareholder value. While committed to organic growth and high-return investments, they are also considering dividends, buybacks, and disciplined bolt-on M&A opportunities. The company emphasizes maintaining flexibility and avoiding excessive debt, contrasting its position with competitors burdened by large debt piles.

    05

    Regional Performance Highlights

    Africa delivered outstanding results with revenue up 36% year-over-year and adjusted EBITDA up 47% to $133 million, driven by broad-based growth. Europe saw revenue growth of 22%, led by a 34% increase in the U.K. and 18% in Ireland. North America (excluding the U.S.) grew 9%, with Canada (excluding Ontario) up 11% and Alberta up 8% ahead of its regulated market launch.

    06

    New Market Expansion

    Super Group remains on track for the expected launch of Namibia in Q4, leveraging existing brand recognition in bordering markets like Botswana and South Africa. The company aims to launch 1 to 3 new countries annually, focusing on markets where banking and operational conditions are favorable. These African market launches are described as efficient and low-cost due to the existing resonance of their trusted global brands.

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