Super Group sets sights on three New Zealand licences and lifts full-year guidance

Super Group, the parent company of Betway, plans to enter the bidding for three online gambling licences in New Zealand when the Department of Internal Affairs (DIA) opens its licensing auction. That number would be the maximum any single operator is permitted to hold under the new regulatory framework.

The move comes as the group reported a 14% year-on-year increase in New Zealand revenue in the second quarter, achieved despite lower marketing spend in the market. The performance helped the company's rest of world segment post a 6% revenue rise, according to CEO Neal Menashe.

New Zealand licensing

New Zealand began accepting expressions of interest in July, with a total of 15 licences up for tender. Applicants must also show access to at least NZ$7.5 million in capital, a threshold designed to keep the market limited to well-funded, established operators. The regulated market is scheduled to begin operating in 2027.

CFO Alinda Van Wyk said Super Group had "been operating in New Zealand for many years" and would "probably apply for three licences". She added that the company deliberately avoided marketing during the re-regulation period, saying: "You don't want to fall into the trap of a bad actor." Entain, which currently runs the TAB sports betting monopoly, has also confirmed it will seek three licences.

UK momentum and M&A potential

In Europe, revenue climbed 19% year-on-year to $132 million, helped by UK market-share gains that Menashe said had accelerated since the Remote Gaming Duty tax hike in April. "We're not a major player in the UK, so there's a lot of market share we are getting," he said.

Van Wyk said the group was in a "fortunate position" in the UK and saw scope to plug smaller operators' market share into its business. "Somewhere down the line, I 100% believe that there would be also some operators," she said. The company also recently finalised a sponsorship deal with Manchester United to boost brand presence in the UK, internationally and across Africa.

Product, casino cross-sell and guidance

Super Group has been focusing on improving its online casino offering in the UK and centralising its tech and product platforms. These efforts, alongside marketing efficiencies, helped lift casino cross-sell to 50% of new customers acquired during the World Cup.

The operator raised its full-year revenue guidance to more than $2.6 billion, up from an earlier $2.55 billion, and lifted adjusted EBITDA guidance to above $710 million. Second-quarter adjusted EBITDA came in at $204 million, compared with $157 million a year earlier, while profit swung to $123 million from a $3 million loss.