Super Group positions itself as ‘DraftKings in Africa’

Super Group CEO Neal Menashe recently compared the company’s burgeoning position in Africa to the significant market footholds of DraftKings and FanDuel in the U.S. He outlined plans for future expansions into Ethiopia, Ivory Coast, and Angola, emphasizing the region’s untapped potential.

In a post-Q1 earnings call, Menashe highlighted Super Group’s strong market performance, reporting a 25% increase in group revenue, reaching $517 million. EBITDA surged by 46.6% to $107 million, while net profit more than doubled, climbing 105.4% to $76 million.

Notably, the Africa and Middle East segment has overtaken North America as Super Group’s primary revenue source. Despite a year-on-year decline in Middle Eastern revenue, growth in Africa has been robust, contributing significantly to the overall increase. The combined revenue from Africa and the Middle East comprised 39% of total group earnings for Q1, up from 37% last year, while North America saw its share decrease from 37% to 35% following the divestiture of part of its U.S. business in 2024.

### Efficiency: The Path to Competitive Advantage in Africa

Super Group’s rapid advancement in Africa positions it well against both existing competitors and new entrants. Menashe acknowledged this increasing competition but expressed confidence in the company’s market standing.

“We have a strong presence in our operational markets,” he remarked. “Think of us as analogous to FanDuel and DraftKings in the U.S.—we are cultivating a loyal customer base and fostering brand resonance.”

Menashe emphasized that efficiency, rather than merely cutting costs, is key to sustaining this competitive edge. “It’s about optimizing expenditures in customer relationship management (CRM), risk management, and processing fees,” he elaborated.

Moreover, he pointed to marketing as a critical area for enhancing operational efficiency. “We must improve conversion rates in each market and explore new product opportunities that enable us to scale.”

### The Profitability of African Markets

While Super Group did not disclose detailed performance metrics for individual African countries, Menashe confirmed that all markets on the continent are currently profitable. He underscored the high profitability potential of the region, noting, “Every additional dollar in revenue translates to significant profit growth. A revenue increase of 30% to 40% could nearly double our profits.”

Menashe reiterated the importance of maintaining momentum in profitability alongside expansion strategies. He highlighted the need for ongoing enhancements to the product offering and incorporation of new features.

Chief Financial Officer Alinda Van Wyk added context to this optimism, citing that Africa is home to 13 of the 20 fastest-growing economies globally. This demographic trend, combined with favorable regulatory landscapes, provides robust opportunities for Super Group’s growth.

“With our extensive experience in navigating varied regulatory environments, we are well-positioned for expansion,” she said. “The regulatory framework in many African markets is often more conducive than in regions like the U.S.”

### Future Market Expansions in Africa

During the earnings call, Menashe fielded numerous inquiries about Super Group’s ambitions in Africa. He confirmed a commitment to further market penetration, with plans to launch operations in several new countries.

“Botswana’s launch in February has been promising, and we are excited about the prospects ahead,” he stated. “Ethiopia, Ivory Coast, and Angola are on our radar, and while we are eager to scale up, it’s imperative that we ensure all operations are executed seamlessly, particularly regarding taxation and capital repatriation.”

Menashe further clarified that while there are numerous opportunities, careful analysis is required to determine the most lucrative expansions. “We are not yet operational in many North African and West African markets, which remain ripe for exploration,” he noted.

### Streamlined Tech Implementations Across African Markets

Technology plays a crucial role in Super Group’s expansion strategy, with Menashe highlighting the ease of rolling out new features across diverse African markets.

“With around 150 banking product integrations, our tech stack is robust and adaptable,” he explained. “If we implement a feature in South Africa, it can be seamlessly introduced in markets like Ghana or Tanzania, greatly facilitating our growth strategy.”

In summary, Super Group’s innovative approaches, commitment to efficiency, and focus on expanding into new markets ensure its competitive edge within the rapidly evolving African gambling landscape.