Increases in sports betting revenue fueled Betway parent Super Group’s growth in the first quarter, but revenue misses and projections caused the stock to tumble.
The company banked $356.9 million in first-quarter revenue, up 7% year-over-year. The quarter was Super Group’s first as a public company after merging with a SPAC in January.
Sports betting revenue leapt 30.4% to $116.8 million, driven by growth in the Africa and Middle East region, followed by Asia and the Pacific. The bulk of its remaining revenue came from its online casino brand Spin.
The growth was not enough to assuage investors, who were spooked by an earnings miss and indications that the company could lower its 2022 revenue guidance.
“The results for the first quarter of 2022 reflected revenue growth and strong cash generation, but were challenged on a period-over-period comparative basis due to industry and economic headwinds and costs related to our business combination and listing as a public company in January,” said company CFO Alinda van Wyk.
Super Group’s stock plummeted 23.7% on Wednesday, hitting its lowest point in the company’s brief history on the market.