Super Group Limited (SGHC) Introduces $0.10 Dividend!

Super Group (SGHC) Limited Initiates $0.10 Dividend Program for Shareholders

Super Group (SGHC) Limited, known for its flagship brands Betway and Spin in the online sports betting and gaming industry, has announced a significant move to initiate a dividend program for its shareholders. This decision marks a pivotal moment in the company’s financial strategy, aimed at rewarding investors while maintaining robust growth prospects.

Introduction of Dividends

In a recent announcement, Super Group’s Board of Directors unveiled plans to implement a regular dividend program, starting with an inaugural cash dividend of $0.10 per ordinary share. This dividend will be paid to shareholders on July 17, 2024, contingent upon ownership as of July 8, 2024. The company intends to maintain an annual dividend payout of at least $0.10 per share, subject to Board discretion and strategic financial considerations.

The introduction of dividends underscores Super Group’s loyalty to enhancing shareholder value. By returning capital to investors, the company aims to attract long-term shareholders and align its financial policies with sustainable growth objectives. This move reflects confidence in Super Group’s financial health and its ability to generate steady cash flow amid dynamic market conditions.

Neal Menashe, CEO of Super Group (SGHC) Limited, expressed enthusiasm about the dividend program, citing it as a testament to the company’s strong performance and strategic foresight. Menashe emphasized that while dividends reward shareholders, they also bolster Super Group’s position as a stable investment choice in the competitive online gaming sector. He highlighted the company’s ongoing faithfulness to balancing shareholder returns with reinvestment in future growth initiatives.

Super Group (SGHC) Limited operates globally, holding licenses across multiple jurisdictions and serving millions of customers through its leading brands, Betway and Spin. The company leverages cutting-edge technology to deliver a seamless online gaming experience, supported by advanced data analytics and marketing strategies. Super Group’s extensive market presence spans Europe, the Americas, and Africa, positioning it as a key player in the digital gaming landscape.

Dividend Policy and Future Outlook

Looking ahead, Super Group plans to transition to quarterly dividend payments beginning in the first quarter of 2025, subject to Board approval and market conditions. The company remains committed to maintaining a competitive dividend yield while exploring opportunities for organic growth and strategic acquisitions. This approach aims to sustain investor confidence and reinforce Super Group’s leadership in the evolving online gaming industry.

Super Group has garnered industry recognition, consistently ranking among the top performers in the prestigious EGR Power 50 list. This accolade shows the company’s leadership and innovation in online sports betting and gaming. By focusing on operational excellence and customer-centric solutions, Super Group continues to expand its market footprint and deliver value to stakeholders.

Chief Executive Officer Neal Menashe commented, “Super Group is delighted to be in a position to announce our first dividend, which delivers on our previously stated goal of returning cash to shareholders. Declaring a dividend shows our confidence in the company and our ongoing strength. We are especially pleased to be able to return capital to our shareholders, while looking to maintain our opportunities for growth.”

Previous Moves

Super Group, the parent company of Betway, has announced its decision to discontinue its US sports betting operations in nine states, citing an unsustainable path to profitability. The affected states include Pennsylvania, Iowa, New Jersey, Arizona, Colorado, Indiana, Virginia, Ohio, and Louisiana, where Betway currently operates. Despite this withdrawal, Super Group will maintain its online gambling presence in New Jersey and Pennsylvania, focusing on its Spin portfolio, which includes brands like Jackpot City.

CEO Neal Menashe emphasized that the majority of Super Group’s revenue comes from iGaming, aligning with their strategy to prioritize casino products in key markets. The company remains open to future expansion opportunities in the US, contingent upon favorable investment conditions.

This decision reflects broader industry dynamics where several operators, including Kindred and 888, have also adjusted their US strategies due to intense competition from established brands like FanDuel and DraftKings. Super Group anticipates incurring costs associated with exiting these markets in its upcoming Q2 financial results, but does not expect these expenses to impact its overall capital allocation plans.

Source: ”Super Group Announces First Dividend”. Investors SGHC. June 26, 2024.