(File No. 001-39583)
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Super Group and Sports Entertainment Acquisition Corp. – Analyst Day, November 12, 2021
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C O R P O R A T E P A R T I C I P A N T S
Ashley DeSimone, Managing Director, ICR
Eric Grubman, Chairman and Chief Financial Officer, Sports Entertainment Acquisition Corp./ Designated Chairman, Super Group
John Collins, Chief Executive Officer, Sports Entertainment Acquisition Corp. / Designated Board Member, Super Group
Neal Menashe, Chief Executive Officer, Super Group
Spencer McNally, Data and Analytics, Super Group
Alinda van Wyk, Chief Financial Officer, Super Group
Richard Hasson, President and Chief Operating Officer, Super Group
C O N F E R E N C E C A L L P A R T I C I P A N T S
Jed Kelly, Oppenheimer & Co., Inc.
Michael Graham, Canaccord Genuity Corp.
Bernie McTernan, Needham & Co.
Chad Beynon, Macquarie Group, Ltd.
Alfonso Straffon, Deutsche Bank Securities, Inc.
Joe Stauff, Susquehanna
Jack Cummings, Berenberg
Matthew Wegner, Craig-Hallum Capital Group LLC
P R E S E N T A T I O N
Ashley DeSimone
Hello everyone. I’m Ashley DeSimone from ICR. Welcome to the Super Group and Sports Entertainment Acquisition Corp. Analyst Day.
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Super Group and Sports Entertainment Acquisition Corp. – Analyst Day, November 12, 2021
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We know your time is precious so you should budget around two hours for today’s event and that includes our Q&A session. We will extend the length of the event if it means getting to your questions, so
management is prepared to go a little longer than two hours if necessary.
Now on to some legal language. Today’s event is being transcribed and during the course of this analyst day certain statements made that are not statements of historical fact constitute forward-looking statements
that are subject to various risks, uncertainties and other factors that could cause actual results to differ materially from those contemplated in these forward-looking statements.
Please mute your lines whenever possible.
Analysts who view or participate in this presentation are cautioned to place undue reliance on these forward-looking statements which speak only as of today’s date with respect to management’s expectations,
beliefs or plans included in such presentation.
For more information, please refer to the risks, uncertainties and other factors discussed in Sports Entertainment Acquisition Corp’s SEC filings, as well as the preliminary registration statement including the
related proxy statement on Form F-4 for Super Group Holding Company Limited which has not yet become effective.
All cautionary or other disclaimer statements that we make during this call are applicable to any forward- looking statements that we make whenever and wherever they appear. You should consider carefully the
risks, uncertainties and other factors discussed in Sports Entertainment Acquisition Corp’s SEC filings.
In today’s event we will refer to certain non-GAAP financial measures such as Adjusted EBITDA. You will find a historical reconciliation of these non-GAAP measures to actual GAAP results included in the Appendix
section of the Analyst Day Presentation.
Now, I’d like to turn the event over to Eric Grubman, Chairman and CFO of Sports Entertainment Acquisition Corp. Eric?
Eric Grubman
Thank you, Ashley.
Hello everyone. Thank you for joining us and taking the time to hear the story and to get your questions answered.
We have been at this effort of finding and merging with Super Group for about 12 months. Today is a very important step for us and the Company because you, this audience, research analysts, collectively bring the
greatest insight and the greatest analytical rigor applied to the industry and to companies within the industry.
Today’s agenda is simple, as you see it here up on the screen. We’re going to describe the transaction. We’re going to tell you about the Company. We’re going to tell you about the performance, and we’re going to
address your questions. Next slide, please.
Please mute your lines if you haven’t done already.
Here’s the presenters. I’m Eric Grubman. I formed the SPAC and I recruited John Collins to join me. I’m going to tell you a little bit about myself.
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Super Group and Sports Entertainment Acquisition Corp. – Analyst Day, November 12, 2021
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I’ve been running things and fixing things since 1980. I started my professional career as a navy nuclear engineer and was in the Submarine Force. For those of you over a certain age, think The Hunt for Red
October theme. That’s what the submarine that I was on did. I went to business school and used that as a pivot to the private sector, and in 1987 I got hired by Goldman Sachs into their Mergers & Acquisitions department. I became an M&A
partner and then I was asked to lead the Energy business within Investment Banking and to continue to run the Sports practice, which I had started up after participating in the sale process of the New England Patriots to the Kraft family. I
left Goldman and did a stint as co- president of the Constellation Energy Group, which was a regulated utility with an unregulated subsidiary. It was a Fortune 500 company at the time and left that after a very rough restructuring which we
managed to complete before the merchant energy business blew up. I then joined the National Football League and was there for 14 years. At the NFL I held every executive job, essentially, except Legal and Football, and the NFL owned media. The
way I think about it is everything from CFO to turning the lights back on in the New Orleans Super Bowl, which is sort of an interesting and fun story we can talk about at another time. I’ve been in and around public companies, sports and major
transactions for 30 years.
Here's the rest of the people you’re going to hear from today. Spencer McNally, Data and Analytics. Spencer has been in the online gaming industry almost from the time there was such a thing. He’s an actuary by
training and he’s a data and analytics Clydesdale. He understands this area and he loves it. He knows it inside and out because he built it.
You’re going to hear from Alinda van Wyk, Chief Financial Officer. Similarly, Alinda has been in and around this business since it began. She’s financially trained classically and has been focused on the numbers
and the reporting since the first predecessor companies got started. Again, and as with Spencer, Alinda knows and loves the financial side of the business because she was responsible for building many of the systems.
You’re going to hear from Richard Hasson, President and Chief Operating Officer. Richard is the new kid on the block. He’s only been around for about 10 years. He’s a chartered accountant by training. He spent
time at Goldman Sachs in London in their Gaming and Leisure arena. He’s responsible for the corporate development, the strategy and the operations. Richard is also the person that makes the trains run on time, and through my observation over
the course of the last 10, 11 months, he’s also the person—one of the people who challenges assumptions and he challenges conventional wisdom.
Then there’s Neal Menashe, Chief Executive Officer of Super Group. Neal is not your typical CEO of a big company because Neal is also an entrepreneur. He built this company brick by brick, and Neal early on
linked up with another pioneer in the gaming industry, in the online gaming industry, Martin Moshal. Martin is the named discretionary beneficiary of certain trusts that ultimately serve as controlling shareholders of two entities, one known as
Apricot and the other known as Nutson (phon). Apricot operates under the microgaming banner, a company you’re probably well aware of, and through Apricot there’s an exclusive relationship on the Super Group Sports Book. Nutson is Super Group’s
largest shareholder.
While I’m on the subject of major shareholders, there is also Travers (phon) Limited. Travers represents the interests of the second largest shareholder. A private investor—Travers is essentially a private
investor that is the second largest shareholder and has been involved with the company and Mr. Moshal almost since the Super Group companies began.
There you have it. Neal Menashe leading the company after 20 years of building it, the two largest shareholders in it for many years and not selling any shares, and a special tech relationship that you’re going
to hear a lot more about that offers competitive advantages.
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Super Group and Sports Entertainment Acquisition Corp. – Analyst Day, November 12, 2021
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Now I’ll just briefly talk about John Collins. John and I have known one and other for over 20 years and we’ve been in the trenches together for about four. John?
John Collins
Thanks, Eric. As Eric mentioned, we worked together at On Location which was a private equity backed experiential business that partnered with the NFL plus over 150 premier sports and entertainment rightsholders
around the world. As CEO we grew the business from a $35 million business to over $700 million in revenues and $65 million in EBITDA in four years before selling the company to Endeavor in January 2020. Prior to On Location I spent 25 years in
the NFL and NHL, working closely with the clubs, ownership and running the national businesses and revenue streams while working hand-in-hand with those leagues’ business, media and corporate partners.
Eric and I know well how the leagues view the sports betting industry. In fact, Eric wrote the game plan for the NFL before he left. We know the game plans that they’ll run to create leverage, ultimately taking
as much money off the table as they can. It’s what I did for those leagues for 25 years. The early results are pretty good for the leagues. The NFL is forecasting $270 million in sponsorship revenues from their online gaming partners in 2021.
That’s in addition to any equity that they were able to achieve in their negotiations. In addition, it was reported that the online sports betting guys spent $57 million through just the first three weeks of the NFL season. So, against this
U.S. marketing assault, really this unsustainable assault, by many of the U.S. names that you guys know well, we really love the Super Group story and we think Super Group is uniquely positioned in the gaming universe.
Next slide, please.
What do we love most about Super Group? We love their worldwide reach and scale, which is not easily replicated. Super Group operates in more than 25 jurisdictions around the world, including leading positions
in key markets across Europe, South America, Africa and Canada. With over 3.700 employees and a deep marketing bench of folks with 10, 15, 20 years experience with the company, Super Group is well positioned for future growth as the company
expands to new markets including the U.S.
Super Group has multiple drivers for revenue growth and long-term potential through their dual offering of the global online sports betting brand Betway and the cash generative Spin Casino Group. Super Group is
online only with no bricks and mortar, no debt and long-term growth prospects, both organic and via acquisition.
Super Group has been focused using technology and data to inform and improve the customer journey for the past 20 years, and as you’ll hear more from Neal and Richard and Spencer, their use of technology and data
is a real differentiator in this category.
And finally, Super Group as a listed entity will be the rare mix of a growth and value stock. It possesses high top line growth and robust cash generation capabilities.
With that I’ll turn it over to Eric to review the transaction.
Eric Grubman
Thank you.
This is a simple transaction. There’s no PIPE. Some of you probably noticed that. It’s funded by the cash in trust plus the balance sheet cash. Money going out the door when we close consists of cash going to
minority shareholders selling a portion of their shares. It also goes to expenses. What that leaves is cash on the balance sheet and a debt-free company.
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Super Group and Sports Entertainment Acquisition Corp. – Analyst Day, November 12, 2021
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We negotiated and priced this transaction at a reasonable multiple, we believe. The comps that we used were not dominated by the U.S. theme. We thought of the U.S.A. and the DGC acquisition as upside, not as the base case. And we wanted to
preserve and we did preserve a fortress balance sheet to begin life as a public company and to be ready to invest in whatever came along that was attractive.
We know you’re going to have timing on your mind, you’re going to ask it, so I’ll just say at this juncture and leave it to see if there’s any questions for the end, we expect to be back on file with the SEC
imminently and whether or not that leads to a December closing we don’t know, but we’ll be back on file very soon.
Let me go to the key investment highlights.
Yes, I know you’ve been subject to it before so I’m going to acknowledge this is the elevator pitch, but this is also the type of summary that lodged in our heads as investors, and not investors that were trying
to make a quick strike and leave. We’re staying in.
Super Group is already at scale with a global footprint: $44 billion in wagers in the last 12 months end of June, 17 countries, 25 jurisdictions, 26 languages, over 2.5 million monthly actives with a recent month
near 3 million. Uses a single sports brand globally with band power being amplified by leading properties from the EPL to esports to Ted Lasso. This last one, Ted Lasso, a big splash in the United States, came as a result of the sponsorship of
West Ham.
As I mentioned, they’re poised to enter the U.S. markets through DGC. DGC has 11 market access deals already, deals that are long-term and smart, not just blowing up money on unprofitable structures. The company
has $350 million of EBITDA projected this year. And yes, so you don’t have to ferret it out, I’m going to just say right now we did remove the plus that’s been in recent investor presentations. You’ll hear more about that later. But
transparency dictates that I call it out to you now so you don’t have to hunt for it, so you don’t have to wonder about it. We are subjected and have been subjected to the same hold headwinds as others, other companies that you report on. Plus,
we’ve got some miscellaneous expenses. Alinda will detail this more later in the presentation.
So, in summarizing, yes, this is the elevator pitch. Yes, this was our investment summary. And yet one more thing, this is improved since we put the deal together and we put it in front of our Board back in
April. Deposits are up, customers are up, number of markets are up, confidence is up.
With that, I’m going to turn it over to Neal and the team. Neal?
Neal Menashe
Thanks Eric. Nice to meet everyone. I’m Neal Menashe. Probably done every job in this business over the last two decades, but really simply, what are we trying to create here? We’re trying to create a worldwide
business with worldwide focus. And how do you do that? Well, what you’ve got to do is you’ve got to have a single branded sportsbook and a multi-brand iGaming offering casino offering to drive the (inaudible). I’ll come into that a bit later.
When we started this business everything was about return on investment. If you’ve been in (inaudible) you have to know how much return you’re getting. Imagine, two decades later every single thing is driven
around this point: data and return on investment. We obsessed and have to obsess about our customers.
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Super Group and Sports Entertainment Acquisition Corp. – Analyst Day, November 12, 2021
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They are what’s the heart of this business. But for me being the CEO what I also (inaudible) people. This business is made of up 3,700 people that without them—they have helped create what we have today.
Really simply, why do we split it out and why do we see the world like this? We believe that a customer when they come to a sportsbook fundamentally believes that they have an edge on the sportsbook and they have
that edge because they believe that they understand the players in the teams that they support better than a sportsbook. However, when you come to a casino, an online casino, it’s all about the feeling they get, the luck, the genre. Yes, every
online casino is the same, so then we have multiple casinos which we’ll talk about later. We’ve got about 20 of them of which four or five make up the vast majority of revenue.
Therefore, if you want to tackle the world, how do you do this? Well, you take a single sports brand and you start going into all the markets with one brand. That means that really simply you can amortize your
global spend over multiple countries. And then with the casinos, they follow suit in the markets that allow for these online casinos.
Richard Hasson
Thank you. Richard Hasson. It’s a pleasure to meet you all.
As you’ve now heard, Super Group is a truly global business. We have an established global footprint, and as you ‘ll see here, a very diversified revenue stream. We’re active in many markets and we’re successful
in these markets, replicating our success as we continue to expand (inaudible).
Putting all these markets together, what you’ll see here, we generated over $44 billion in wagering in the 12 months to June (inaudible), and $1.1 billion of net gaming revenue in 2020. We can only do that, as
Neal said, thanks to our employees around the world. We have in-country teams obsessing about local offerings. While we’re a global business, we’re made up of many (inaudible) offerings from around the world. One of the things that we know is
that not all places are the same and these teams are eating, breathing, sleeping the local product, the local offering, understanding our local customers around the world, providing as local a form of entertainment as possible. Combining that
with our technology we’re live today in 26 languages, 24/7, 365 days a year.
Today, as Eric mentioned, we hold licenses in 25 jurisdictions, that’s outside the U.S. which I’ll go into a lot more detail later, and we have a very, very healthy pipeline of new markets.
As you can see on the bottom right, we have a very diversified revenue mix. Only one country in 2020 accounted for more than 10% of our net gaming revenue, and 87% of this revenue came from regulated and
regulating markets. As we continue to grow, we’ll continue to diversify this revenue mix even further.
As you’ll see here, we’ve experienced a very significant growth in our net gaming revenue and in our customer base in recent months. We’re operating at scale and we’re growing, and with this growth comes
operating leverage which Alinda will go into in a lot more detail later. At a high level, as our revenues grow, we don’t need to incur as many additional costs; we’ll go out and hire hundreds of additional people. As I said, the details of that
Alinda will provide later.
On the net gaming revenue, we’ve forecast over $1.5 billion of net gaming revenue for this year, and as you can see here, we generated around $770 million in the first half of the year.
On the customer base, we have an average of over 2.5 million unique customers per month across all of our systems in the first half of this year, and actually only last week, the Saturday just past, we surpassed
1.1 million unique customer across all of our systems in one day.
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Super Group and Sports Entertainment Acquisition Corp. – Analyst Day, November 12, 2021
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While our revenue and our customer base is growing, our EBITDA is also growing, and to generate this growth, as you’d imagine, we are investing in the business. In the last five years up to June, we’ve invested
just shy of $1.5 billion in marketing, and still generating this EBITDA.
Going back to what Neal said, this is being done strictly through what we know: making data-driven, return-driven investment decisions.
We’re growing and we’re growing profitably.
Neal Menashe
When we sat down with Eric and John, we tried to picture and explain to them where we see the Super Group. So, really, really simply compared our competitors. We’re digital only. We do not have any land- based
assets. We have a global footprint. We are across the globe in all the continents. Control or own the tech stack from beginning to end. Richard and myself will go over that later. Single sports brand. We spend on one sports brand and as we
spend so obviously the returns. And yes, we don’t take all our brand space and use all our budget on that. No, not at all. It’s calculated, cleverly done branding with all the other marketing efforts it.
We come from online casino. That’s where it started. We understand the online casino customer from beginning to end. We are highly, highly highly profitable and we are debt free.
Richard Hasson
Another way of looking at this is where we sit within the wider gaming ecosystem. As you’ll see here on this chart, we’ve got this unique combination of growth and profitability (inaudible) earlier, it’s
generated from our global footprint.
While we have market share in many markets around the world, because of this footprint we don’t need to be, for example, top two or top three market share in any one market in order to generate the significant
returns for our shareholders. We know how to generate growth. We know how to generate profit, and what we’ve learned over time is that one doesn’t have to be first to a market in order to end up with a meaningful business there.
Touching briefly on the U.S., which again we’ll come back to later, the focus on the U.S. to date has been on obtaining and securing market access with operations still being early days. In the U.S., similar to
other markets, our focus here is long term. We see this as a marathon, not as a sprint.
As you all know, there’s been a lot going on in the industry. I won’t go through all of this in detail. I’ll just touch on a few points here.
We’ve been seeing some great regulatory momentum across the world, including here are some examples: the U.S., Canada, Germany. Of course, we’ve also seen a big shift of late to mobile and digital, and speaking
of that, to three of our strong points: the growing importance in a strong online casino (inaudible). As Neal said, going back to the root of the Super Group. A massive focus on data. Again, we’ve been obsessing about data since Day 1 of this
business. And the control of one’s technology, which I’ll come to but I’m glad to say we have.
We’re global. We’re profitable. We have a debt-free balance sheet, and when you look at how we’re positioned in the market, it’s a very favorable position as the industry continues to evolve and move on to the
next chapter.
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Super Group and Sports Entertainment Acquisition Corp. – Analyst Day, November 12, 2021
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Just before we wrap up the section, I’ll quickly summarize what’s been happening in the business since the April SPAC announcement. What you’ll see here is how we’ve been continuing executing on our strategy.
We’ve had some great performance in the first half of the year with net gaming revenue, as I mentioned, around $770 million and that’s relative to greater than $1.5 billion forecast for the year. We’re seeing
some great regulatory momentum around it. And just touching on the U.S., the Betway brand is now live in five states. That’s Indiana, Iowa, Colorado, New Jersey and Pennsylvania, with, since April, another market access agreement that you might
have seen in August that DGC was awarded a temporary license in Arizona and that’s the first time that DGC is partnering with a tribe.
These five states are all still early phases, early stages operationally, very much in soft launch, but of course from a brand perspective very exciting for the brand to be up and running in the U.S.
Since April, we’ve also signed a number of new brand partnerships. (Inaudible) that portfolio and now expanding over 65 partnerships around the world, touching on numerous sports and esports. These include the
likes of the NHL Stanley Cup, tennis partnerships, esports partnerships, the South African Rugby team, Athletica Madrid, a very well known soccer team, and more recently perhaps closer to home, Miami Heat, Dallas Mavericks, ‘76ers. Again, we’ll
come on to the U.S. a bit later, as well as focus a bit more on the brand. But for just to highlight once again the global nature of the business, we would have done these partnerships even if the Betway brand wasn’t going live in the U.S. We
have a global audience spread across the world and of course something like the NBA, just to pick out one example, is watched across the globe.
Outside of the U.S., we’ve launched in other international markets including France, which was back in April, and Tanzania in July. More recently, we’ve been granted two new licenses in Poland and Paraguay. As I
mentioned earlier, we also have a very significant pipeline of more markets to launch over time.
Then we continue to the last point, as you’d expect, to invest in our product, our data tools, our marketing tools, ultimately to ensure that we’re providing our customers with its best possible journey and the
best possible experience as we continue to scale around the world.
Neal Menashe
So, very simply, what’s our winning hand? We have been digital since Day 1. We fundamentally believe in a single branded sportsbook backed by the multi-brand casino offering. We control or own our tech stacks, so
we are close to our customer from beginning to end; from the time we acquire him to keeping in your system. We obsess with data and analytics, and that obsession is leading to the accounting system being integrated. Every customer’s journey is
in the accounting system. When we pull documents from Excel, it’s from the accounting system. We have, we believe—and we’ve been doing it because it’s brick by brick—unparalleled understanding of our customers in the journey of their
lifecycles. Return on investment, you have to in this business ultimately get a return on your marketing. If you’re not going to get a return on your marketing, you ain’t going to make profits. And we are (inaudible) the global workforce and
broken the world into countries and market and that we have scale and operating leverage to be able to take on all our competitors.
So, why are we so obsessed about data? Maybe because I was an accountant, but it’s because when you start a business and you have to get a return on that first marketing main, everything you’ve built around it
has to be about that return. Can you track it? Can you see it? You don’t want to make a mistake. Then you make your profits and then you reinvest. Then you make profits and you reinvest. That’s what we’ve done. So, everything had to be accurate
to really make the right decision at the right time. It sounds easy when you’re in one market, but when you’re in multiple markets and multiple languages and all these things are happening at the same time, and you’re in sports and you’re in
casino, you have to have robustness. You have to have the system scale, and this is what we’ve done. Basically data is at the core of everything we do, but we do not forget ultimately our customer is our most important item that we have to,
have to, have to look after.
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Super Group and Sports Entertainment Acquisition Corp. – Analyst Day, November 12, 2021
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Really simply, we’ve got all these systems and we’re going to (inaudible). You’ve got new and existing customers and you’ve got to acquire them correctly, keep them in your ecosystem and the difference between
your lifetime (inaudible) and what you acquire them is your profit. And if you’re acquiring well and they’re going out the back door because your system doesn’t give it what it needs, well, then you’re not going to make profit or less profit.
So, everything has to have the feedback loop and Spencer will go into it later. We’ve got millions of customer data points per day. Hundreds of millions of points that we’re analyzing, in the game play, what we (inaudible), if you give them the
right slot machine, what genre slot machine, what sports event? Really, what you have to do is by doing this across the globe you’re going to be in different markets, your product is going to be at different phases in the lifecycle.
So, as Richard pointed out, this is not about how big we are, market share in each market. This is about how we can get extra revenue in every single market we’re in, and we do that with Betway and then with
Spin, and with an unbelievable data set that sits underneath in real time.
Again, it’s all about optimizing. Customer segmentation, Spencer will go into it later. Just high level from 50,000 feet view, the customer is the center. Everything has got to be around that customer – the
products you’re serving, the real-time nature. Real-time bonusing, how you do that, how do you bonus someone when they’re in the system, not when they’ve left the system. How do you get the system so close to the gaming server so that there’s
no latency so that—because this is happening all the time. Again, when you do this at scale, the systems have to be responsive at scale and the checks and balances when the system is given dynamic bonusing has to work. What if it doesn’t work?
What are the checks and balances you’ve got in place? This is what we have built from the bottom up.
Richard Hasson
Thanks Neale.
Leverage has been here—as Neale mentioned earlier—we’re in control of the core technology that we use in all markets, all material markets (inaudible). We’ll go into this again later, but this comes even in the
form of proprietary technology is installed or in the form of this exclusive long-term relationship with Apricot that was mentioned earlier. (inaudible) sportsbook and also PAM, although there is one small customer that still uses the PAM in
the U.K.
As you’d imagine, we work very closely with them across a number of markets and we are in control of that (inaudible). This has enabled us to be a lot closer to the customer, of really controlling their full
experience. It also means we’re able to control prioritization around new markets or new features, for example, all the time knowing that what is being built is being delivered exclusively to us. As context, that’s obviously very different to
being one out of many customers of the software provider where everything that is delivered to one customer is delivered to all customers (inaudible). This obviously helps us differentiate, and again, coming back to the point providing our
customers with the best possible product and experience.
Before I hand back to Neale, I’ll just point out the technology we reference here is not the technology that’s being used for the Betway product in the U.S. which some of you may have seen. It’s different and
I’ll go into more detail later, but the driver behind that was that there were certain timing requirements for go-live from DGC’s market (inaudible). We’ll touch on it all in more detail later.
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Super Group and Sports Entertainment Acquisition Corp. – Analyst Day, November 12, 2021
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Neal Menashe
Really simply, how do we do this?
So, we split the world up and we’ve got the Betway side and the Spin side. The Betway side you can see there, you’ve got teams that will look after U.K., Europe, Rest of World, Africa, LatAm, the U.S., etc. and
then you’ve got the Spin side which we talked about earlier, but you’ve got Jackpot City, Spin Casino being its two big brands, but it’s got over 20. Everything has to be thought of in payments, the right payments at the right time. The
marketing, what kind of marketing? If it’s brand marketing for Betway, again, we would not spend and do not spend all our marketing budget on brand. Brand is one facet of the marketing, which is why as you grow your revenues that amount
increases your brand spend, which means it’s very hard for your competitors to get their brand awareness the same way we’ve got it. The way we do that also is by opening more of these markets across the globe, we get our software easily into
these markets and then you have teams. You don’t have to go hire 50 people, 100 people to do all these markets. You can start out with a few people because you’ve got these highly experienced centers of excellence do it, and everything there is
about data. The right decisions, the right time and that’s what we obsess about, and the tech. Being close to our tech partner, being close to the journeys from beginning to end. From the websites to the app stores, everything. This is a game
of inch by inch. Every inch, eventually the markets start showing great profitability, and again, maybe we’ll see later, the world is our target market and we do it with a two-pronged approach, Betway and Spin.
Richard Hasson
Thanks, Neal. Moving on here on to product marketing technology.
In this section, the first part of this wider section we’re going to dive a bit more into the product because as Neal just mentioned it’s comprised of Betway, the single brand durable sports betting offering, and
Spin, the multi-brand casino offering.
Betway operates as Betway across all markets. It’s known as one thing regardless of where it is, no different to other durable brands, Amazon, Uber or any other durable brand. As you can see here, and you
probably know, Betway, while being a sportsbook brand also offers online casino. As we referenced, our casino customers at Betway (inaudible) the same customer as an online casino customer at one of the Spin brands, and by having both Betway
and Spin within the Super Group, we’re caging to a wider audience and ultimately ensuring that our customers can find a product that meets their individual requirements.
Within Spin, as we touched on, it’s a large portfolio of brands offering wide range of selection of casino games, slots, table games and live dealing.
Taking a closer look here at Betway, the single brand sportsbook. Betway is global and it’s high growth. You will see on the right-hand side here some very healthy growth. What makes Betway unique is how it
operates as a single brand across the globe. No other brand in the (inaudible) space operates with one brand having such a large global footprint. A key part of that brand is this large portfolio of over 65 brand partnerships. These are
spanning numerous sports, numerous esports across numerous geographies, all part of a coherent, consistent marketing strategy to promote the brand to long-tailed customers around the world. I’ll just hone in on a few of those.
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Super Group and Sports Entertainment Acquisition Corp. – Analyst Day, November 12, 2021
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In soccer, the Betway brand has got presence in five European countries: England, Spain, Italy, Germany, Portugal. In the English Premier League, as Eric mentioned earlier, the league with the highest global
figures, Betway branding is visible in over 66% of the games. In the NBA, seven teams now feature Betway branding in their home matches. In the NHL, they’ve granted a league-wide deal so it’s like a partnership with the New Islanders, the L.A.
Kings and the Philadelphia Flyers. In horse racing, Betway is the biggest (inaudible) in British and Irish horse racing, and actually next month we’ll reach a landmark 4,000th race sponsorship. Lastly, in tennis, Betway has got a total of 11
partnerships spanning eight different (inaudible).
Looking back at Spin here briefly, as we said, Spin is our multi-brand casino offering. It has a very long tail with the five largest brands accounted for around 87% of Spin’s revenue in 2020. The focus of
marketing on the Spin side, which Neal will go into later in the section, is digital. It’s surge, it’s DPC, it’s affiliate. And as we also touched on, Spin has been around for a very long time, over two decades, effectively (inaudible).
Similar to Betway, in Spin we have very, very loyal customers and we understand our customers in a very unique way with millions of data points at our disposal. As with other elements of the business, the focus
here is data. It’s making data driven decisions all coming back to us to so we can enhance the customer experience, providing them with as customized and as (inaudible) an offering or form of entertainment.
When you put all this together, what you have on Spin is profitable, stable and growing casino business.
As we said earlier, while Super Group is a global business, it’s made up of local offerings around the world. What we have here are a few examples of how we’ve painted the product across the world (inaudible). On
the left-hand side we have an example of one of our African products. This is Kenya where as per other markets we have a very localized product. What you’ll see here, it’s local currency, it’s Kenyan shillings, and the product is being provided
in Swahili.
In the middle is an example of how we provide localized casino content within the offering. Of course, the in-country teams that we’ve spoken about, they all know exactly what content works in each market and
they all ensure that the integration of those games ultimately gets space on the development roadmap. As context here, the provider shown is a (inaudible) provider which is content that is very popular in Spain and the Latin American markets.
On the right-hand side, this is an example of how we tailor our product to meet customer preferences and customer tastes. This is our cricket scoreboard; we built it ourselves and it’s something very unique to
Betway. This offers ball by ball commentary, ball by ball visualizations of where the ball was hit along with numerous different statistics around the game, all appearing on the scoreboard and integrated with odds around the game. Since this
was launched in Quarter 3 last year, we have seen a doubling of users, we’ve seen a doubling of (inaudible) gaming revenue and we’ve seen two and half times more players.
Before I move on from this, I’ll just note again the technology we’re showing here is not the same technology that’s currently being used in the U.S. Over time, we will be able to go into that, but for now
(inaudible).
Looking at Betway and Spin together then, what you’ll see here is almost an even split with each of the offerings contributing around 50% of the NGR in the first half of this year. (Inaudible) one of the earlier slides, Betway includes
betting and gaming, so when you look at this (inaudible) product within the group casino will be larger than sports betting. Of course, it’s actually what Eric mentioned earlier. Even with this combined product offering, we’re still subject
to the same impact of when sports events go heavily in favor of our customers, as we saw last month (inaudible). When you use this dual strategy of sports and gaming, this enables what we’re seeing in terms of growth of both our top line and
our bottom line. When you combine those, what you’re seeing here, we’ve generated significant revenues and a very healthy margin of around 23%. As Alinda will explain later, the majority of this EBITDA, close to 90% of it, ultimately converts
into free cash flow.
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Super Group and Sports Entertainment Acquisition Corp. – Analyst Day, November 12, 2021
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Neal Menashe
So, really simply is how do we attack marketing?
Well, I’ve talked about this before but I’ll just emphasize it. We break it into two parts, one is Betway and one is Spin?
For Betway, we do that with brand partnerships across the globe. That means we can amortize it. The NBA is amortized across our entire countries how have our customers betting on the NBA. Soccer, the same, if
it’s NHL, but then you’ve got to follow that up with TV, affiliates, digital, PPC, SEO, retargeting. That’s all part of it. How we do that is by having these country teams. By having a global approach with localized targeting we effectively can
get to all the customers.
Spin is the same. Spin doesn’t have one brand; Spin has got a few brands, as we’ve talked about. Again, it will do TV, it will do lots of digital, lots of retargeting, affiliates in there and it’s driving the
traffic. What you do—and product enhancements and all these goodnesses together are taking the tech as close to the customer as we can get them. So, over time this is about inch by inch sorting out the technology in every single market we
operate in. That is why we’ve got this global approach. We’ve been doing that and will continue to do that because that is how we will then bring more revenue at a higher margin, and a more profit down to the bottom line.
We need to talk about Betway. (Inaudible) was simple. What happened with Betway was simple. When you have LEDs and you have all these things going on, we want to have a simple message. It was Betway. It was not
bet casino way, bet sports way, it was Betway. And when you see our branding it is Betway and we do it over multiple sports because there are customers in all countries of the world that we operate in that will like cricket, might like soccer,
might like NHL, esports, etc. Again, it’s the simple messaging. It’s a personal approach that’s localized targeting and localized product offerings. By having our control of this tech stack is we bring our Betway global product into all the
markets we get to. So when we start making feature changes it affects all markets and that is how we then use that with the enhancements together to increase our lifetime values and bring the customers in the front door and keep them in our
ecosystems.
Again, this talks about we do all of this. Spin has been digital since the beginning, SEO high ranking, affiliates, having brand shelf space with affiliates, even advertising dot net strategies, all different
things, all over the world, over sports events. This is again bringing it to life. (Inaudible) Spin, Jackpot City and a host of the other brands.
This is the casino, the online casino. Again, as markets come in the U.S., we can bring the Spin and Jackpot City brands into the U.S. very easily.
Richard Hasson
When it comes to technology we are a pretty unique business in that we use our own technology plus we use (inaudible). For example, in Africa where we use our own technology, in other regions, like I say, we use
third parties, including, as mentioned earlier, an agreement with Apricot for the exclusive provision of their (inaudible).
As we showed earlier, in all material markets we control the tech stack regardless of event technology is in-house (inaudible).
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Super Group and Sports Entertainment Acquisition Corp. – Analyst Day, November 12, 2021
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In addition to this control, what’s also important to us is speed to market and having the most fit for purpose technology in each market.
Going back to the data point, what’s non-negotiable for us is that regardless of what tech we choose in any market, we have our proprietary behavioral science and data analytics technology (inaudible) on top of
that. Spencer will go into this a bit later.
At a high level (inaudible) ables us to do, it gives us a perfect view of our customers and all their data at all times. From a marketing perspective, it enables us to work out where we should be investing our
next dollar, and we’re getting all this information in real-time. You will know that many systems report this after the event. Ours, as Spencer will show, work in real-time.
Again, when it comes to data, we’ve been doing this for years. A lot of people speak about data. This has been inherent in the business from Day 1 and it’s (inaudible) 22-plus years later. From the first decision
to decisions made today, it’s all about data.
As Alinda will touch on later, all of this technology is also tied into the accounting system. From an account, from a reporting perspective, we’re tracking every customer and everything that they do within the
ecosystem: deposits, wagering, withdrawals, all of that is tracked on an individual basis and is embedded into the accounting, into the reporting systems. This enables us to pull any report at any time, and also ensures very robust and very
reliable financial reports can be pulled and created really, really quickly.
Before I move on, again, the same point as earlier. If you’ve downloaded or looked at the product in the U.S., the U.S. is not running on this same tech today, the one that’s being used in the material markets
outside the U.S.. We’ll come on to all of that later and explain how that is going to all change to be on the Betway global property.
Going a bit more here into these tech stacks, as I mentioned in Europe we’ve got the third party sportsbook, the exclusive relationship with Apricot for their sportsbook, and that’s used in material markets. On
top of that and in addition to that, we have our own team of traders, about 110-plus that are covering the sports events. Obviously highly experienced traders and also contributing towards a differentiated product, ultimately keeping the
customers in mind, creating (inaudible) markets, embracing of data, all looking at how best to enhance the custom experience.
In Africa, we operate differently. When we first decided to enter the African market, (inaudible). Today, that offering is available in five different languages across Africa.
I’ll now hand over to Spencer to take you through the next section of behavioral and data science.
Spencer McNally
Thanks, Richard, and good morning everybody. Thanks Eric for that very generous introduction earlier. Eric didn’t mention that I recently lost to a technical knockout in a very big fight between my bicycle and
gravity and a rather large and aggressive rock. Please forgive the state of my face. I don’t usually look like this.
Data and analytics has been part of the DNA of this business since Day 1, and we believe that it’s one of our key competitive advantages. Yes, we’re a gaming business and a technology business, and a lot of other
things, but underlying all of that is a deep, deep bench of data scientists and engineers and almost a quarter century of institutional focus on data and analytics.
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Super Group and Sports Entertainment Acquisition Corp. – Analyst Day, November 12, 2021
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What you’re seeing here is the obligatory flywheel slide showing how tightly meshed our processes are, how everything effectively leverages everything else. We start by acquiring customers at effective costs through tailored sponsorship and
marketing in a wide variety of channels. That doesn’t mean necessarily as cheap as possible. It means a good price in the right channel with good marketing partners that we can work with for the long term to acquire customers that are worth the
price.
We then need to monetize those customers and we do that by providing the best entertainment possible with the widest range of products and excellent value for money. Then on top of that we layer a truly
customized experience, individualized for each customer, for product content, promotions, offers and so on. Then at the center of all of this is our data science platform. It’s capturing every data point you can imagine, analyzing it all in
real-time for depth and optimize what the customer sees and experiences. That, in turn, is how we maximize retention and minimize churn, which is ultimately howe we then responsibly optimize lifetime value and profitability on a per customer
basis.
All of that keeps the flywheel spinning, reinforcing the effectiveness of our acquisition efforts, which is how we’re able to spend as effectively as we do on sponsorship and marketing. That then reinforces our
messaging ever further to help us acquire even more customers and keep the existing ones inside of our ecosystem even more effectively than before.
The aim is to keep the flywheel spinning, hopefully faster and faster all the time, and it’s all based on a complex proprietary model of customer profitability that we believe is exceptionally accurate, and I’ll
show you more about that later.
But before I leave this slide, one quick point I want to emphasize which is that you’re going to hear me talk about optimizing profitability rather than maximizing it, and the reason for this is that maximizing
might get you short-term results, but it runs the risk of harm to customers, which in our view really isn’t good for long-term profitability. So, instead, our ethos, we believe in optimizing for both sustainable customer relationships and
long-term profitability, and all of that plays out in some very impressive results in terms of our advertising payback period and customer persistency, as you can see on this slide. In fact, we actually have a number of customers who have
actively engaged with our products for more than 20 years from the date that they first signed up, and many thousands more who were active in recent months who have been around for at least a decade. We believe that all of that is a very solid
testament to how well this flywheel works.
A lot has happened in this business in almost 25 years. We believe that we were the first operator back in the 1990s to offer basic loyalty schemes and cashback online. Simple, points-based levels, tiers, monthly
rewards, not necessarily a great achievement to just copy the land-based guys back then, but certainly unique online at the time. That was followed by free play and account opening offers which we just about invented in the online casino space,
but of course as you’d expect, sharp customers quickly found ways of exploiting those offers for positive EV—I’m sure you guys are doing the same online in sports in the
U.S. at the moment—so we had to innovate again. We were then the first to give rewards and incentives in ways that properly allowed for detailed individual customer behavior, and that was really the beginning of
effective customer segmentation for our business and for the industry.
Getting that right saved us when other operators couldn’t control it and went under. Other operators clamped down too hard; they limited their growth, whereas we were able to dial it up and down for each
customer.
Another big first for us and for the industry we believe was applying actuarial techniques for accurately valuing customers, modeling lifetime profitability, projecting return on ad spend and so on. Again,
starting more than 20 years ago and it’s been a big part of our competitive advantage ever since.
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Super Group and Sports Entertainment Acquisition Corp. – Analyst Day, November 12, 2021
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Then since then we’ve developed extremely granular, very accurate customer segmentation and profitability models using a wide range of behavioral and other factors for each customer, and we’ll get into some
detail on that just now.
Then there’s AI and machine learning using all the massive data sets that we’ve accumulated which we’re now using for a wide range of processes within the business, and where we believe we’re way out in front of
the industry in many respects.
All of that gives us a lot of confidence in our ability to engage customers profitably and responsibly, and overall what I hope you’re seeing on this slide is that for more than 20 years we’ve been pioneers in
using data and analytics for competitive advantage.
Next slide.
We’ve always believed in full control over our data and our tech stack. Hopefully you’ve seen that control of the tech theme coming across strongly throughout this presentation from Neal and Richard also, and
more than 20 years later we don’t outsource anything data related and we never have. We have very deep skills in this area, IT skills with server farms in the cloud infrastructure, large database management, data engineering teams for ingesting
and transforming large volumes of data in sub-second timeframes, teams and teams of data scientists and analysts. Together, all of those people and all of those systems are aiming for the optimal effectiveness of all of our product in every
market and optimizing between satisfied customers and a profitable business. We give all of those teams a lot of freedom and autonomy so that they can get things done quickly, but then we also provide them with the foundation of world-class
centers of excellence.
In the end what we get is a massive, massive amount of data, streamed, analyzed, available in real-time, supporting our real-time systems for 24/7 real-time interactions and (inaudible).
The bottom line is a highly personalized set of experiences for our customers, optimized for safe, responsible and ethical profitability. Ultimately what this gives us is a mass market database of high quality,
loyal customers all around the world.
I actually want to touch on for a second what high quality means. It’s, first of all, not a euphemism for high value. What it really means is appropriate and sustainable value from persistent and loyal customers
who spend what they can safely and responsibly enjoy and sustainably afford, and it’s all driven by unique, sophisticated, proprietary models, algorithms and technology.
In sum, we don’t just talk about these things. We are using data and analytics to construct unique operational advantages and I’ll show you some evidence of that in the next few slides.
The best way to show you why our approach is better is perhaps to start by discussing the old way of doing things. I say the old way but maybe not. Particularly from some of the off-the-shelf products that a lot
of our competitors are using, it does seem that some people still think that this approach is the gold standard, whereas at least 10 years ago we realized that this methodology isn’t even ineffective; it’s actually downright unprofitable.
What this slide is showing you is the standard approach to customer segmentation, some relatively limited customer attributes, some summarized financial metrics, some not very useful recency and frequency
categorizations, and then you mash that all up and what you get is some oversimplified customer baskets that bear little or no resemblance to what customers actually look like, or more importantly how they behave or how they interact with a
product. Then, worse, systems like this usually only collect and aggregate data every 24 hours in arrears, so they can’t influence anything that matters right now, least of all customer enjoyment of the product in real-time or the profitability
of the business over any period. This is really a perfect example of busy work. It keeps people very busy, looking like they’re actually working, but instead of adding value they’re actually subtracting. Obviously it has to be said, this kind
of system has no value for responsible gaming. It’s not designed for real-time; it’s built with a profit-maximizing CRM hat on and neither of those things are what you need for responsible gaming purposes.
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Super Group and Sports Entertainment Acquisition Corp. – Analyst Day, November 12, 2021
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The proof that this fails is shown by the graph on the right, which some of you might recognize as a (inaudible) plot. It shows the accuracy of the per customer profitability predicted by a typical system like
this against actual customer profitability, and these results are based on our actual customers and actual data. In this case they’re Spin customers. Their parameters would be slightly different than Betway customers so that would be a separate
plot. It’s actual historical data for each customer. All of them have a certain minimum number of events within the system, but that’s not a big number. A typical customer can get there inside of a few days and a very decent percentage do
actually get there on their very first day.
So, for those of you who don’t understand the graph, all that you need to know is that a perfect result would be represented by the diagonal line, and what you’re seeing instead is basically what looks like a
random set of predictions in the blue dots all over the chart. For the stats nerds, the R2 is 0.21 and for the rest of you that basically means it’s worst odds than flipping a coin.
What do we do instead? Well, first off, because we’re operating in real-time, we’ve got a continuous feedback loop going. Everything mashes together; basically the cogs of that flywheel that I started off talking
about. We incorporate an immense range of information, everything from the obvious like individual deposits and wagers and withdrawals, odds movements, sporting event outcomes, blackjack cards, slot spins and so on, plus a few other things that
obviously I’m not going to detail for competitive reasons. In the middle of all of that are the real-time systems: transporting of data, making it available, monitoring, measuring the quality of the customer experience, making decisions,
executing on those decisions. A key difference is that these decisions are based on granular data, literally hundreds of millions of separate data points processed, evaluated, re-evaluated every day. On a busy day maybe even in the billions,
event by event, in real-time, taking into account everything from the results of the most recent spin to a bad run three weeks ago or a big win three years ago. Not just oversimplified summaries of an ineffective customer basket and all that
are a day old.
That then is reflected in what the individual customer sees in the product in real-time in a whole bunch of ways. Responsible gaming interventions for those customers that need them; optimized product and
wagering options and incentives for everybody else. Then when the customer interacts with that, or doesn’t as the case may be, and then we’re feeding that information back via the continuous real-time loop. Simultaneously, all of this data
feeds into our other processes and systems, back office, risk, compliance, customer service, acquisition marketing and so on, also all in the feedback loop. All happening in real-time using proprietary technology that we’ve built from the
ground up for minimum latency and maximum evaluable (inaudible) reliability.
What I hope you’re glimpse of here is a very large and very complex system, many, many moving parts built up over many, many years, which we believe is unique in the industry and exceptionally difficult for any
of our competitors to replicate.
That all sounds great but where is the proof that it actually works? Well, on the right-hand side you can see the results. Again, the diagonal line is perfect accuracy and again the dots show what our models
predict. Using the same customers as the previous slide, this time the predictions are clustering quite closely around the diagonal, which in this case gets us an R2 of 0.91 which is pretty remarkable for a product that inherently has so much
in the way of randomness and variance.
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Super Group and Sports Entertainment Acquisition Corp. – Analyst Day, November 12, 2021
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For those that don’t quite understand, I’ll spell it out. What this is basically showing is that our models are able to predict long-term customer profitability with a greater than 90% success rate, again,
subject to minimum number of transactions but not a big number; most of our customers get there quite quickly. And we’ve replicated this quite a few times.
In sum, our secret sauce here is really a mix of deep, deep understanding of the customer and the product and the business together with best-in-class technology that we have purpose-built over 20-plus years from
the ground up.
Putting the right product in front of the right customer at the right time is a key key objective for us, and there are lots of ways in which we are able to do this. I am going to try and give you a taste of that
without giving up any of the truly secret sauce. So, you’re not going to see anything too revolutionary but hopefully you’ll still get the idea.
On the left is one of our bet recommendation engines. We’ve actually got a few; they are tailored for different markets. These send out a large number of recommendations every day all around the world. This kind
of system is using AI to surface specific markets and wagers that we think will resonate with individual customers. We might see that you like betting on events involving the 76ers or the Heat or the Bulls, but we’re also going a step further
than that. We are incorporating aspects of our proprietary understanding of customer, particularly the things that we believe optimize for responsible gaming and long-term profitability, which means that some things that the AI might want to
recommend won’t get surfaced. That’s because our models can show that the blind application of AI outcomes isn’t always good for the customer or for our profits.
The image in the middle, that’s showing some relatively simple proprietary content. The simplicity is actually intentional because this is for a particular emerging market where we know that this type of content
plays well with customers. So this particular content won’t be seen everywhere. The takeaway here is that not all markets need all the bells and all the whistles all the time.
On the right-hand side is a big part of the glue that holds everything together. It’s our bespoke real-time low-latency custom messaging system, again, built from the ground up. We’ve got all of this real-time
data, real-time calculations, real-time decision systems, but if we can’t communicate with customers in real-time then what’s the point. With all the way of doing things, we know there are competitors out there still using off-the-shelf systems
that schedule messages for a week from now. Anything can happen between now and then, so that just doesn’t work.
Instead, what we’ve built are systems that react and respond in real-time to what the customer is experiencing right now, which is particularly important for a product that’s all about randomness and variants,
and where the customers happiness with a product can literally turn on a dime. We honestly don’t see how anything else does the job, especially for responsible gaming interventions. Those have got to be super timeliness and hyper-personalized
if they’re going to be effective.
Hopefully you’re already getting a sense that we are truly a global business. We’re marketing our offerings to a wide array of jurisdictions and cultures and consumers, and we’re well aware that we need to tailor
the experience for each market. And what you’re seeing on this side is a high level contrast between a couple of quite different markets. Market A is an emerging market. There’s a strong customer preference there for parlays with very big
potential returns. Market B is a developed market, slightly more sophisticated customers where they prefer more varied wagering, in play single and prop bets (inaudible) odds. And the tech gives you a sense of the contrast between bet sizes and
lifetime values, and also how the relative sophistication of Market B extends to a wider range of sports that get wagered on by every customer.
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Super Group and Sports Entertainment Acquisition Corp. – Analyst Day, November 12, 2021
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Then on the screenshots on the right-hand side you get some sense of how we adapt the product interfaces accordingly. Of course, once we’re live in the U.S.A. with our own product, then we’ll do the same thing.
In many cases, we’re looking after these markets with local on-the-ground in-country teams; they’re customizing the content that they’re local marketing and so on, but they still get the benefit from our global
scale and our global marketing and our global sponsorship deals. Basically, there’s a global core to the product with local wrapping where necessary.
The takeaway here is that we’re looking at every market on its own merits. We are adapting the offer for what we understand customers are looking for in each market. Sometimes those differences are significant,
often they’re very subtle, and the trick that we aim to be getting right more often than not is to keep measuring and monitoring and iterating so that we can keep delivering what our customers want no matter where in the world they are.
Safe gaming strategy. Simply put, we don’t want a single customer to spend more than they can afford or more than they would enjoy. This isn’t just an ethical position or a regulatory position. We actually
believe that it’s optimal for long-term revenues and long-term profits.
What you’re seeing on the screen are some of the customer self-help tools that can be accessed by customers at any time, but in the background we’ve also got our real-time systems working out when we need to
proactively remind customers about these tools, or if necessary, sometimes these systems are even going to intervene more forcefully to protect the particularly vulnerable.
Data and analytics and our deep understanding of customer behavior plays a massive, massive role here. We’re looking our for patterns of behavior in real time, certain patterns of deposits or intent to deposits
or abnormal wagering, and we’re also mining inbound customer service emails and chats, looking for signs of financial or emotional distress. Then we’re using our real-time messaging systems and our control over the front end of the product to
surface appropriate messages when necessary in real-time, or to go beyond that and enforce sessional deposit limits or break periods or so on, again in real time. We believe that we are industry leaders in this area of the business. We’ve got
over 350 people in fraud and risk and compliance and responsible gaming teams all around the world and all of our staff are regularly trained and retrained on these topics.
We actually welcome the efforts of regulators around the world to enforce better standards in this area. Not just because we believe we’ve got a significant competitive advantage here, but also because safe and
secure customers spending no more than they can afford will be happy customers and that’s ultimately how we’re going to keep on growing this business.
So, on that topic of growth, I’m going to hand you back to Neal for the next section.
Neal Menashe
So, how do we look at the global growth opportunities? Really simple, right? In 2025 it’s estimated to be
$125 billion dollars. A few months ago this figure was $110 billion. That’s the market that we are after, and we’re after it with our sports and with our gaming offering. We know how to intermarket. We’ve been
doing this business for more than two decades. We have high brand awareness. We have flexible tech, data-driven approach. Therefore, this is not about how big we are in each market; it’s how much of the 125 we can bring to the Super Group.
(Inaudible) every extra $0.5 million or million dollars of revenue brings more to the bottom line and that’s how we look at it, and we’re going to continue to look at it like that because this is how we’ve got everything in our control in order
to attack this market and we’ve got the people already and we’ve got everything all—everything is data-driven in the markets, understanding where the CPAs are per market, what the lifetime values are per market, how much we want to be spending.
We can choose where we deploy the money into these markets, and that’s how we’ve grown the business from its infancy and then where it is today.
18
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