Posted: December 10, 2024 at 11:25.
Last updated: December 10, 2024, 11:34 am.
The stock price of Betway’s parent company Super Group (NYSE:SGHC) soared after the gaming company raised its 2024 revenue and earnings before interest, tax, depreciation, and amortization (EBITDA) forecasts, and also announced a special dividend. There was a backlash on Tuesday.
The Betway brand is advertised on West Ham Football Club jerseys. Parent company Supergroup raised its outlook for 2024 and announced a special dividend. (Image: Getty Images)
The company now expects 2024 revenue to be $1.68 billion, an upward revision from its previous forecast of $1.63 billion for EBITDA of more than $364.3 million to at least $380.1 million. It was announced that. Supergroup has raised its 2024 financial outlook, six months after telling investors it would exit the U.S. sports market following an internal review.
The operator told shareholders that the driving force behind the decision was that the path to profitability would be narrow in the U.S., a top-tier sports betting market dominated by two companies, and smaller competitors would gain market share. He said this is because it is difficult. The supergroup told investors in January that it would spend less money on U.S. sports betting activities this year than in past years.
Supergroup is one of about 10 companies to exit the U.S. market over the past few years, and one of several to exit this year.
Supergroup returns capital to investors
The gaming company also informed investors that it plans to pay a special dividend soon.
In consideration of the Company’s performance, Supergroup’s Board of Directors has announced a special cash dividend of 15 cents per share on common stock to shareholders of record at the close of business on December 23, 2024. It will be paid on January 8, 2020.” to the statement.
This was followed by news of the company’s first annual dividend of 10 cents per share, announced in June. Based on this, the stock has a yield of 1.43%, which is up 120.50% since the beginning of the year.
CEO Neil Menashe said: “We have consistently stated that we will consider returning excess cash to shareholders. It gave me a foundation on which to execute.” in a statement.
Supergroups can grow without US exposure
While the United States is the world’s fastest-growing sports betting market and has the greatest exposure to high-net-worth bettors, Supergroup’s improved financial outlook means the operator has expanded to other markets such as Africa and Canada. This confirms that supergroups are thriving in other jurisdictions as well, indicating the potential for continued growth of supergroups. It would be wise for the company to leave this country.
The Betway brand is well known in markets outside the United States, and its Spin division is a popular online casino provider in several regions outside the United States.
Super Group has licenses to offer gambling in 25 markets across Africa, the Americas, Asia and Europe. Although the company exited the U.S., it had previously emphasized resuming its growth trajectory in Canada.
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