Published on: December 10, 2024, 11:25h.
Last updated on: December 10, 2024, 11:25h.
Super Group (NYSE: SGHC), the parent company of Betway, saw a surge in its stock price as the gaming company raised its revenue and EBITDA guidance for 2024 and announced a special dividend.
The company increased its 2024 revenue forecast to $1.68 billion and EBITDA guidance to at least $380.1 million, citing improved performance. This update came after Super Group decided to exit the US sports market due to challenges in gaining market share against dominant players.
The operator’s decision to focus on other markets like Africa and Canada seems to be paying off, with the company’s financial outlook strengthening without US exposure.
Super Group Returning Capital to Investors
Super Group also announced a special dividend, following its first annual payout earlier in the year. With a stock price increase of 120.50% in 2024, shareholders can expect a dividend yield of 1.43%.
CEO Neal Menashe stated, “We have consistently said that we will consider returning excess cash to shareholders, and the outstanding performance of the business throughout 2024 alongside the continued strength of our balance sheet, has given us the platform to be able to do this.”
Super Group Can Thrive Without US Exposure
Despite the US being a lucrative sports betting market, Super Group’s success in other regions validates its decision to leave the country. The Betway brand and Spin unit are popular internationally, positioning the company for growth in various markets.
With licenses in 25 markets across Africa, the Americas, Asia, and Europe, Super Group’s focus on regions outside the US is contributing to its overall success.