Colossal Enterprises conveyed gratitude to its extensive customer network in the second trimester.
Colossal Enterprises’ income in the second trimester was €380.8 million (£324.6 million/$413.9 million), a rise of 18.7% annually, surpassing the second trimester of 2022.
Colossal Enterprises expressed appreciation for its vast customer base in the second quarter.
Omitting US operations, income for the trimester was €374.0 million, up 16.0%, a new peak for Colossal Enterprises.
Modified earnings before interest, taxes, depreciation, and amortization (EBITDA) was €70 million, up 32.6% annually. Excluding the US, this figure was €82.6 million, up 54.2%.
On Colossal Enterprises’ second-quarter earnings conference call, Colossal Enterprises CFO Alinda van Wyk highlighted the company’s new quarterly records, including a record monthly high of 3.9 million active customers in April.
She stated, “We established multiple new records, including the highest ever quarterly total revenue EBITDA.” “Our customer base is stronger than ever and will be a key driver of our future business growth.”
Colossal Enterprises CEO Neal Menashe stated the company has been steadily expanding, particularly in its customer network.
He said, “We have witnessed continued growth in our customer base, with robust momentum persisting from the first trimester.” “April was a very strong month, with a new monthly record of 3.9 million active customers.”
“This trimester, we achieved a new peak of 3.7 million average monthly active customers, compared to 2 two years ago.”
The previous year, the firm brought in €7 million in earnings, which signifies a 40% rise.
Menash also emphasized the “ongoing investment” in acquiring new clientele as a crucial factor in their success.
Betway’s robust performance in Africa and the Middle East propelled overall revenue expansion.
Examining Super Group’s two ventures, Betway and Spin, Betway contributed €228.9 million to total earnings. This marks a 28.1% increase from the corresponding period last year. Spin contributed the remaining €151.8 million, signifying a 6.8% rise.
Geographically, the majority of revenue (€110.3 million) originated from operations in Africa and the Middle East. Of this, Betway contributed €110 million. Super Group noted in its report that growth in Africa and the Middle East was the primary driver of overall revenue expansion.
Menash stated that Africa continued to perform “robustly” during the quarter despite “some unfavorable foreign exchange movements.”
Super Group’s North American business emerged as the second-largest revenue source, generating €137.1 million.
Net profit for the second quarter declined by €271 million year-over-year.
Direct and marketing expenses for the quarter amounted to €277.3 million, an increase of 22.8% year-over-year. General and administrative expenses were €37.8 million, and depreciation and amortization expenses were €20.3 million.
After accounting for €1 million in other operating income, operating profit for the quarter was €46.3 million, an increase of 3.2%.
Other costs, including financial expenses and fair value changes in options, totaled €6.6 million. This was partially offset by €2 million in financial income, resulting in a pre-tax profit of €41.7 million.
During the second fiscal quarter of 2022, Super Group recorded a fair value adjustment gain liability of €219.3 million. This resulted in a pre-tax income of €304.1 million for the quarter, a substantial disparity when compared to the second quarter of 2023, which reached €262.4 million.
Super Group paid €14.2 million in taxes during the quarter, bringing the total net income for the second quarter to €27.5 million. This represents a reduction of €271 million compared to the same period in the previous year.
North American operations experienced revenue growth in the first half of the year. Revenue for the six months ending June 30 was €719.3 million, an increase of 9.7% year-over-year.
Of this, Betway contributed €427.2 million and Spin contributed €292 million.
While Africa and the Middle East were the most profitable regions in the second quarter, North America performed well throughout the first half of the year. North America contributed €267.3 million to total revenue for the six months, while Africa and the Middle East contributed €198.2 million.
In January, Super Group acquired a digital gaming enterprise that owned the online sports betting operations of Betway in the United States. At the time, Super Group stated this would enable it to launch in the US market.
After subtracting expenses, the highest of which were direct and marketing expenses at €553 million, operating income was €52.3 million, down 24.0%.
Financial income of €3.2 million was slightly affected by financial expenses of €1 million. After a fair value change in options of €8.2 million, pre-tax income was €46.2 million.
Super Group paid a total of €20.6 million in taxes for the quarter. This resulted in a net income of €25.6 million, down 81.0%.
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