Q2 2026 Super Group Ltd Earnings Call

August 5, 2026

Speaker #1: Thank you for standing by. My name is Jale, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Super Group second quarter 2026 earnings webcast and conference call.

Operator: Thank you for standing by. My name is Jael, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Super Group Q2 2026 Earnings Webcast and Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you'd like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you'd like to withdraw your question, simply press star one again. Now let's turn the conference over to Nkem Ojougboh, Head of Investor Relations for Super Group. Please go ahead.

Speaker #1: All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star, followed by the number 1 on your telephone keypad.

Speaker #1: If you would like to withdraw your question, simply press star 1 again. I would now like to turn the conference over to Inc. Ojibwe, Head of Investor Relations at Super Group.

Speaker #1: Please go ahead.

Speaker #2: Thank you. Good morning, everyone, and thank you for joining us today to discuss Super Group's results for the second quarter of 2026. During this call, Super Group may make comments of a forward-looking nature that are subject to risk, uncertainty, and other factors discussed further in its SEC filings, which could cause actual results to differ materially from historical results or from our forecast.

Nkem Ojougboh: Thank you. Good morning, everyone, and thank you for joining us today to discuss Super Group's results for Q2 2026. During this call, Super Group may make comments of a forward-looking nature that are subject to risks, uncertainties, and other factors discussed further in its SEC filings, which could cause actual results to differ materially from historical results or from our forecast. We assume no responsibility to update forward-looking statements other than as required by law. On today's call, we may refer to certain non-GAAP financial measures. These measures are in addition to and not a substitute for measures of financial performance prepared in accordance with GAAP. Reconciliations to the most comparable GAAP measures are included in the press release issued yesterday and available on the investor relations page of our website. We recommend that investors refer to the supplementary presentation posted on our website.

Nkem Ojougboh: Thank you. Good morning, everyone, and thank you for joining us today to discuss Super Group's Results for Q2 2026. During this call, Super Group may make comments of a forward-looking nature that are subject to risks, uncertainties, and other factors discussed further in its SEC filings, which could cause actual results to differ materially from historical results or from our forecast. We assume no responsibility to update forward-looking statements other than as required by law. On today's call, we may refer to certain non-GAAP financial measures. These measures are in addition to and not a substitute for measures of financial performance prepared in accordance with GAAP. Reconciliations to the most comparable GAAP measures are included in the press release issued yesterday and available on the investor relations page of our website. We recommend that investors refer to the supplementary presentation posted on our website.

Speaker #2: We assume no responsibility to update forward-looking statements other than as required by law. On today's call, we may refer to certain non-GAAP financial measures.

Speaker #2: These measures are in addition to, and not a substitute for, measures of financial performance prepared in accordance with GAAP. Reconciliations to the most comparable GAAP measures are included in the press release issued yesterday and are available on the Investor Relations page of our website.

Speaker #2: We recommend that investors refer to the supplementary presentation posted on our website. Today, I'm joined by Neal Minashi, Chief Executive Officer, and Alinda van Beek, Chief Financial Officer.

Nkem Ojougboh: Today, I'm joined by Neal Menashe, Chief Executive Officer, and Alinda van Wyk, Chief Financial Officer. After our prepared remarks, we will open the call up for questions. Now, I'd like to turn the call over to Neal.

Speaker #2: After our prepared remarks, we will open the call for questions. And now, I'd like to turn the call over to Neal.

Speaker #3: Thank you. And good morning, everyone. I'm pleased to report that the second quarter of 2026 marked another exceptional period for Super Group. Surpassing the record set in the first quarter, revenue, adjusted EBITDA, deposits, and wagering activity all reached new highs.

Neal Menashe: Thank you, Inc, and good morning, everyone. I am pleased to report that Q2 2026 marked another exceptional period for Super Group, surpassing the record set in Q1. Revenue, adjusted EBITDA, deposits, and wagering activity all reached new highs, supported by strong underlying momentum across the business and increased engagement during the FIFA World Cup. As announced yesterday, we are super excited about our landmark partnership with Manchester United, making Betway the club's principal partner and exclusive global betting partner for the upcoming English Premier League season starting later this month. This partnership will further enhance Betway's profile across United's massive worldwide fan base. Man U's status as arguably Africa's most popular football club strongly aligns with our long-term brand and growth objectives. The World Cup drove exceptional customer acquisition and solid cross-sell across the business.

Neal Menashe: Thank you, Inc, and good morning, everyone. I am pleased to report that Q2 2026 marked another exceptional period for Super Group, surpassing the record set in Q1. Revenue, Adjusted EBITDA, deposits, and wagering activity all reached new highs, supported by strong underlying momentum across the business and increased engagement during the FIFA World Cup. As announced yesterday, we are super excited about our landmark partnership with Manchester United, making Betway the club's principal partner and exclusive global betting partner for the upcoming English Premier League season starting later this month. This partnership will further enhance Betway's profile across United's massive worldwide fan base. Man U's status as arguably Africa's most popular football club strongly aligns with our long-term brand and growth objectives. The World Cup drove exceptional customer acquisition and solid cross-sell across the business.

Speaker #3: Supported by strong underlying momentum across the business and increased engagement during the FIFA World Cup. As announced yesterday, we are super excited about our landmark partnership with Manchester United, making Betway the club's principal partner and exclusive global betting partner for the upcoming English Premier League season, starting later this month.

Speaker #3: This partnership will further enhance Betway's profile across United's massive worldwide fan base. Man U's status as arguably Africa's most popular football club strongly aligns with our long-term brand and growth objectives.

Speaker #3: The World Cup drove exceptional customer acquisition and solid cross-sell across the business. New customer acquisition increased more than threefold compared with the prior World Cup period.

Neal Menashe: New customer acquisitions increased more than threefold compared with the prior World Cup period. During the tournament, customers placed over 166 million football bets. Approximately 60% of those bets, or 100 million, were on World Cup matches. Our sports margin hit a record 17% for the quarter, reflecting improved pricing and risk management, the continued growth of parlays, and most importantly, the quality and durability of our customer base. Our focus remains on acquiring and retaining customers who generate sustainable long-term value. Our super persistent annuity revenue model is intended to sustain customer cohorts that generate predictable revenues and profits. This disciplined approach is intended to ensure robust long-term returns that are coupled with healthy and sustainable unit economics. We see this working particularly well in Africa, which delivered another outstanding quarter.

Speaker #3: During the tournament, customers placed over 166 million football bets. Approximately 60% of those bets, or 100 million, were on World Cup matches. Our sports margin hit a record 17% for the quarter.

Speaker #3: Reflecting improved pricing and risk management, the continued growth of parlays, and most importantly, the quality and durability of our customer base. Our focus remains on acquiring and retaining customers who generate sustainable, long-term value.

Speaker #3: Our super-persistent annuity revenue model is intended to sustain customer cohorts that generate predictable revenues and profits. This disciplined approach is intended to ensure robust long-term returns that are coupled with healthy and sustainable unit economics.

Speaker #3: We see this working particularly well in Africa, which delivered another outstanding quarter. Revenue grew 36% year over year, while adjusted EBITDA increased 47% to $133 million.

Neal Menashe: Revenue grew 36% year-over-year, while adjusted EBITDA increased 47% to $133 million, driven by broad-based growth across the region. Sports and casino wagers were up 5% and 28% respectively, year-over-year. Looking ahead, we continue to see attractive opportunities to expand our footprint and remain on track for the expected launch of Namibia in Q4. We also remain focused on increasing the utility of our Super Coin. We are expanding wallet functionality, broadening exchange access, and advancing the phased rollout strategy while building the foundation for broader adoption and remittance across key African markets. International grew 7% year-over-year. Ex the US, it was 12%, while adjusted EBITDA held steady at EUR 84 million, with strong underlying growth offset by the UK tax and short-term cost of strategic generosity campaign that we expect will deliver ongoing benefits in due course.

Speaker #3: Driven by broad-based growth across the region, sports and casino wagers were up 5% and 28%, respectively, year over year. Looking ahead, we continue to see attractive opportunities to expand our footprint and remain on track for the expected launch of Ninivia in Q4.

Speaker #3: We also remain focused on increasing the utility of our ZAR R Super Coin, with our expanding wallet functionality, broadening exchange access, and advancing the phased rollout strategy, while building the foundations for broader adoption and remittance across key African markets.

Speaker #3: International grew 7% year over year; excluding the US, it was 12%. Adjusted EBITDA held steady at $84 million, with strong underlying growth offset by the UK tax and short-term costs of strategic generosity campaigns that we expect will deliver ongoing benefits in due course.

Speaker #3: In Europe, revenue grew 22%, led by a 34% increase in the UK, which delivered record revenue in May. Ireland was up 18% year over year.

Neal Menashe: In Europe, revenue grew 22%, led by a 34% increase in the UK, which delivered record revenue in May. Ireland was up 18% year-over-year. We expect to launch slots in Germany this month, bringing our full product suite to the market. North America, excluding the US, grew 9%. Canada ex Ontario delivered 11% revenue growth, supported by strong retention and continued product enhancements. In Alberta, revenue was up 8% year-over-year, ahead of the province's regulated market launch on 13 July. We are approaching the rollout in a disciplined and phased manner to support sustainable long-term growth. Rest of world revenue increased 6%, led by strong performance in New Zealand, which grew 14% year-over-year despite reduced marketing spend. We are preparing for local licensing and positioning the business for a seamless transition to a regulated market. With that, I'll turn the call over to Alinda.

Speaker #3: We expect to launch slots in Germany this month, bringing a full product suite to the market. North America, excluding the U.S., grew 9%. Canada, excluding Ontario, delivered 11% revenue growth, supported by strong retention and continued product enhancement.

Speaker #3: In Alberta, revenue was up 8% year over year, ahead of the province's regulator's market launch on July 13. We are approaching the rollout in a disciplined and phased manner to support sustainable long-term growth.

Speaker #3: Rest of world revenue increased 6%, led by strong performance in New Zealand, which grew 14% year over year, despite reduced marketing spend. We are preparing for local licensing and positioning the business for a seamless transition to a regulated market.

Speaker #3: With that, I'll turn the call over to Alinda.

Speaker #4: Thank you, Neal. Fortitude 2026 delivered a record total revenue of $684 million, up 18% year over year, while adjusted EBITDA grew 30% to $204 million.

Alinda van Wyk: Thank you, Neal. Q2 2026 delivered a record total revenue of EUR 684 million, up 18% year-over-year, while adjusted EBITDA grew 30% to EUR 204 million. Adjusted EBITDA margin expanded to 30%, compared with 27% in the prior year period. Average monthly active customers reached 6.2 million, up 13% year-over-year. Total wagering increased 8% for sports and 15% for casino. Free cash flow conversion reached 68% in H1 of the year. We closed the quarter with EUR 548 million in cash, up 39% year-over-year, even after returning EUR 25 million to shareholders this past quarter and EUR 218 million over the last 12 months. Disciplined cost management, the enduring strength of our casino business, a boost in sports performance driven by the World Cup, enhanced pricing, and our commitment to high return markets are all reflected in these results.

Speaker #4: Adjusted EBITDA margin expanded to 30%, compared with 27% in the prior-year period. Average monthly active customers reached 6.2 million, up 13% year over year.

Speaker #4: Total wagering increased 8% for sports and 15% for casino. Pre-cash flow conversion reached 68% in the first half of the year. We closed the quarter with $548 million in cash, up 39% year over year.

Speaker #4: Even after returning $25 million to shareholders this past quarter, and $218 million over the last 12 months. Disciplined cost management. The enduring strengths of our casino business.

Speaker #4: A boost in sports performance driven by the World Cup, enhanced pricing, and our commitment to high-return markets are all reflected in these results.

Speaker #4: Supported by our efficient approach to capital allocation, our balance sheet remains as robust as ever. Finally, as a result of our strong first half performance and a solid start to the third quarter, we are pleased to raise our full-year 2026 guidance.

Alinda van Wyk: Supported by our efficient approach to capital allocation, our balance sheet remains as robust as ever. Finally, as a result of our strong H1 performance and a solid start to Q3, we are pleased to raise our full year 2026 guidance. We now expect total revenue to be more than EUR 2.6 billion and adjusted EBITDA to be greater than EUR 710 million. I will now hand back to Neal for closing remarks.

Speaker #4: We now expect total revenue to be more than $2.6 billion, and adjusted EBITDA to be greater than $710 million. I will now hand back to Neal for closing remarks.

Speaker #3: Thank you, Alinda. Over the first half of 2026, we have once again demonstrated the strength of our brand, business model, and customer base. We are driving growth through disciplined execution and operational excellence.

Neal Menashe: Thank you, Alinda. Over the H1 2026, we have once again demonstrated the strength of our brand, business model, and customer base. We are driving growth through disciplined execution and operational excellence. Given our exceptional performance and the strength of our balance sheet, capital allocation is very much front of mind for both management and the board. While we remain committed to maintaining a strong balance sheet, we recognize that we have excess cash. As shareholders ourselves, our interests are closely aligned with yours, and we're actively evaluating the most effective ways to deploy our capital to maximize long-term shareholder value. With steady momentum, a highly engaged customer base, our new Man U partnership kicking off the football season, and multiple growth drivers at play, we believe Super Group is well positioned for the remainder of 2026. Operator, please can you open the call up for questions?

Speaker #3: Given our exceptional performance and the strength of our balance sheet, capital allocation is very much front of mind for both management and the board.

Speaker #3: While we remain committed to maintaining a strong balance sheet, we recognize that we have excess cash. As shareholders ourselves, our interests are closely aligned with yours, and we will actively evaluate the most effective ways to deploy our capital to maximize long-term shareholder value.

Speaker #3: With steady momentum, our highly engaged customer base, our new manual partnership kicking off the football season, and multiple growth drivers at play, we believe Super Group is well-positioned for the remainder of 2026.

Speaker #3: Operator, please can you open the call up for questions?

Speaker #5: Thank you. The floor is now open for questions. If you have dialed in and would like to ask a question, please press one on your telephone keypad to raise your hand and join the queue.

Operator: Thank you. The floor is now open for questions. If you have dialed in and would like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star one again. If you're called upon to ask a question and are listening via loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute when asking your question. Again, to ask a question, it is star one. Your first question comes from the line of Jed Kelly of Oppenheimer. Your line is open.

Speaker #5: If you would like to withdraw your question, simply press dial one again. If you are called upon to ask a question and are listening via loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute when asking your question.

Speaker #5: And again, to ask a question, please dial one. Your first question comes from the line of Jed Kelly of Oppenheimer. Your line is open.

Speaker #6: Hey, great. Thanks for taking my question, and another nice quarter. Just circling back, I guess, given all the engagement in the World Cup, can you just talk about your MAUs and your marketing being down—I think it was down 2% year over year—and just kind of your choice to maybe not market as much as we thought, and then some of the sequential decline we saw in MAUs?

Jed Kelly: Great. Thanks for taking my question, another nice quarter. Just circling back, I guess, given all the engagement in the World Cup, can you just talk about your MAUs and your marketing being down? I think it was down 2% year-over-year. Just kind of your choice to maybe not market as much as we thought, and then some of the sequential decline we saw in MAUs. Thanks.

Speaker #6: Thanks. Okay, should I hide and talk? No problem. Yes, the headline number for Max is down, but it's not a concern for us. There are a number of reasons.

Neal Menashe: Okay. Sure. Hi, Gentar. No problem. The headline number for MAUs is down, it's not a concern for us. There are a number of reasons. The FIFA World Cup was great for acquisition, and we saw super engagement from those customers. You must bear in mind it was only two weeks of the quarter, and three weeks before that, there was no soccer at all. What we're seeing is very normal seasonality for the quarter as a whole. The quarter, we also had some tax effects to deal with in two smaller African markets. This had an impact on customer counts at the lower value end. Revenue still grew sequentially. Ex these markets, MAUs grew sequentially, we're very happy with that.

Speaker #6: The World Cup was great for acquisitions, and we saw super engagement from those customers. But you must bear in mind it was only two weeks of the quarter, and three weeks before that, there was no soccer at all.

Speaker #6: So, what we're seeing is very normal seasonality for the quarter as a whole. This quarter, we also had some tax effects to deal with in two smaller African markets.

Speaker #6: This had an impact on customer accounts at the lower-value end, but revenue still grew sequentially. Excluding these markets, Max grew sequentially, so we're very happy with that.

Speaker #6: Overall, we expect resumption of customers in Q3 and Q4 in line with prior quarters, on the back of the new EPL sense and season, and, of course, the manual partnership.

Neal Menashe: Overall, we expect resumption of customers in Q3 and Q4 in line with prior quarters on the back of the new EPL season, of course, the MAU partnership. Remember, this is also key for us. The key driver for us is super persistent and healthy, profitable revenue per customer. I think you see that coming through in our results. On the marketing half-

Speaker #6: But remember, this is also key for us. The key driver for us is super-persistent, annuity-profitable revenue per customer. And I think you see that coming through in our results.

Speaker #6: And on the marketing side.

Alinda van Wyk: Yeah

Neal Menashe: I'll hand over to Linda.

Neal Menashe: I'll hand over to Alinda.

Alinda van Wyk: Thanks, Jay. The marketing is down around 1%. Seasonality plays a role because Q2 is normally a much quieter period for us around marketing. We're also pleased with our FIFA World Cup acquisition campaigns, we did not spend as much as that you would expect. The reason for that is, remember, the time zone for the FIFA World Cup is quite not ideal for our book and a large portion for our customers is outside the time zones. We expect to a revision back to our guide of around 21% to 22% for the remainder of the year.

Speaker #4: Thanks, Jed. Yes, marketing is down around 1%. Seasonality plays a role because Q2 is normally a much quieter period for us in terms of marketing.

Speaker #4: We are also pleased with our World Cup acquisition campaigns, but we did not spend as much as you would expect. The reason for that is, remember, the time zones for the World Cup are not quite ideal for our book, and a large portion of our customers are outside those time zones.

Speaker #4: And we expect to revise back to our guide of around 21% to 22% for the remainder of the year.

Speaker #6: Great. And just for my follow-up, Linda, can you help us think about the back-half cadence between the third and fourth quarter this year?

Jed Kelly: Great. Just for my follow-up, Linda, can you just help us think about the back half cadence between Q3 and Q4 this year? I know, I think last year, Q4 might have been impacted by adverse sports results. Just any way you can just help us with the cadence would be great. Thanks.

Jed Kelly: Great. Just for my follow-up, Alinda, can you just help us think about the back half cadence between Q3 and Q4 this year? I know, I think last year, Q4 might have been impacted by adverse sports results. Just any way you can just help us with the cadence would be great. Thanks.

Speaker #6: I know—I think last year, fourth quarter—Q4—might have been impacted by adverse sports results. So, just any way you can help us with the cadence would be great.

Speaker #6: Thanks.

Speaker #4: Yeah. So we've got to remember, 2024 was a very hard comp. And then we had the adverse effects of the sports in Q4 2025.

Alinda van Wyk: Yeah. We've got, remember 2024 was a very hard comp. We had the adverse effects of the sport in Q4 2025. That's what makes guidance quite difficult for us around the sports. We're quite consistent in our approach just to be a bit more conservative around that. It will be normal levels that you've seen in the H1. Our marketing discipline, like I said, will be back at 21% and 22%. We've got high confidence in our business and in our customers. We still have embedded in the H1 guide of organic growth, no aggressive persistency assumptions. We still see the continued support and the momentum from the customers post the World Cup.

Speaker #4: We expect that's what makes guidance quite difficult for us around the sports. And we're quite consistent in our approach, just to be a bit more conservative around that.

Speaker #4: It will be normal levels that you've seen in the first half of the year. Our marketing discipline, like I said, will be back at 21–22%.

Speaker #4: And we've got high confidence in our business and in our customers. So we still have embedded in the half-year guide our organic growth.

Speaker #4: No aggressive persistency assumptions. And we still see the continued support and momentum from the customers post the World Cup. And then we've also just embedded the UK tax effect and the Alberta taxes from July onwards in our guide for the half year.

Alinda van Wyk: We've just also just embedded the UK tax effect and Alberta tax from July onwards in our guide for the H1. Very consistent to what we've previously put up.

Speaker #4: But it's very consistent with what we've previously put up.

Speaker #6: Thank you.

Jed Kelly: Thank you.

Speaker #5: Your next question comes from the line of Jordan Bender of Citizens. Your line is open.

Operator: Your next question comes from the line of Jordan Bender of Citizens. Your line is open.

Speaker #6: Hey everyone, good morning. I want to start in Nigeria—still early days there. I know you've been looking at the strategy in the country this year, but how has that strategy and product evolved over the course of the year? And how do you anticipate being competitive with the two top operators there that have a strong retail presence in that market?

Jordan Bender: Hey, everyone. Good morning. I want to start in Nigeria. Still early days there. I know you've been looking at the strategy in the country this year. How has that strategy and product evolved over the course of the year, and how do you anticipate to be competitive with the two top operators there that have a strong retail presence in that market? Thank you.

Speaker #6: Thank you. Okay, so hi. Really, Nigeria is obviously a big opportunity. It's the largest population in Africa, growing in terms, etc.

Neal Menashe: Hi, Neal here. Nigeria is obviously a big opportunity. It's the largest population in Africa, growing trends, et cetera. What we're doing, and we've been doing it, and we're still doing it, is improve technology, improving our product, our teams, and our bench strength. We signed Don Jazzy as an ambassador, we launched driving acquisition and brand recognition there. We're diversifying our marketing channels. Remember, Nigeria is still very small relative to our other African countries, we really are optimizing it there. It's coming together. The numbers are going in the right direction for Nigeria, we good.

Speaker #6: What we're doing—and we've been doing it, and we're still doing it—is improving technology, improving our products, our teams, and our brand strength.

Speaker #6: We signed Don Jazzy as an ambassador, so we lost driving acquisition and brand recognition there. We are diversifying our marketing channels. So remember, Nigeria is still very small relative to our other African countries.

Speaker #6: So we really are optimizing it there, so it's coming together. The numbers are going in the right direction, but that's it, yeah. So we're good.

Speaker #6: Okay, thank you. And then, only at the end of the prepared remarks, you kind of circled back to the capital allocation piece. Is there any change to how you think about how you're allocating capital outside of your dividend?

Jordan Bender: Okay. Thank you. Neal, at the end of the prepared remarks, you kind of circled back to the capital allocation piece. Is there any change to how you think about how you're allocating capital outside of your dividend? You kind of talked about the most effective ways. I'm just kind of curious, has that changed in your mind of how you want to allocate capital? Thank you.

Speaker #6: You kind of talked about the most effective ways, and I'm just kind of curious—does that change, in your mind, how you want to allocate capital?

Speaker #6: Thank you.

Alinda van Wyk: Thanks for the question. We're actively working with our board around this, and we recognize that we have excess cash. With that said, there's no change in our approach at this point. Discipline comes first, but we remain flexible. We believe in organic growth, so we're going after opportunities with a higher return on investment. Like we said, we'll up the marketing spend again. We also have dividends and buybacks always on front of mind. For M&A, stay disciplined around opportunities that make sense to us. Bold on opportunities that will strengthen our core. Very consistent to prior approaches, but it's definitely, we focus on it all the time.

Speaker #4: Thanks for the question. We are actively working with our board around this, and we recognize that we have excess cash. With that said, there's no change in our approach at this point.

Speaker #4: We, discipline comes first, but we remain flexible. We believe in organic growth, so we're going after the opportunities with a higher return on investment, and like we said, we'll up the marketing spend again.

Speaker #4: But we also have dividends and buybacks always in front of mind. And for M&A, we stay disciplined around opportunities that make sense to us—bolt-on opportunities that will strengthen our core.

Speaker #4: So, very consistent with prior approaches, but it's definitely something we focus on all the time.

Speaker #6: Great. And I can just—sorry—and I can just add in there, obviously, when it comes to even M&A, we are selective. And also, we don't have lots of debt—basically minimal debt—and we don't want to lack the flexibility.

Jordan Bender: Great. Thank you very much.

Neal Menashe: I can just add in there. Obviously, when it comes to even M&A, we selected, and also we don't have lots of debt. We're taking minimal debt, and we don't want to lack the flexibility. We're really in a good place. The operating cash flow is coming into the business.

Speaker #6: So, we're really in a good space, and the operating cash flow is coming into the business. Perfect. Thank you.

Jordan Bender: Perfect. Thank you.

Speaker #5: Your next question comes from the line of Bernie McTernan of Needham and Company. Your line is open.

Operator: Your next question comes from the line of Bernie McTernan of Needham & Company. Your line is open.

Speaker #6: Great. Thanks for diving into Alberta a little bit more—maybe in terms of what the underlying guidance is assuming, in terms of either retaining the revenue that you have in the region now or even growing it.

Bernie McTernan: Great. Thanks for taking the questions. Maybe just to start, I would love to dive into Alberta a little bit more, maybe in terms of what the underlying guidance is assuming in terms of either retaining the revenue that you have in the region now or even growing it

Speaker #6: Okay. So, oh, okay. Let's talk about this. Obviously, all brands have to follow the local regulations by the middle of October, right?

Neal Menashe: Okay. Let's talk Alberta. Obviously all brands have to follow the local regulation by the middle of October, right? We focused on obviously the regulation readiness and getting us the tech, everything working really well there. We're taking on a phased brand rollout approach, unlike Ontario, which was a big bang, you had to move everyone over on a set date. For us, it's making sure the UX is right, focus on our HVC, the VIP cohorts to ensure the retention. Overall, we expect also a more rational competitive environment in Alberta versus what happened in Ontario. We've got time, got the next few months to do it. Everything's on track, and our teams are very happy with it.

Speaker #6: So, we focused obviously on the regulation readiness and getting the tech—everything working really well there. We're taking on a phased brand rollout approach.

Speaker #6: Unlike Ontario, which was a big bang year to move everyone over on the set date. So, for us, it's making sure the UX is right, focused on our HVC, the VIP co-ops to ensure retention. But overall, we also expect a more rational competitive environment in Alberta versus what happened in Ontario.

Speaker #6: But we've got time, with the next few months to do it. So everything's on track, and I think we're very happy with it. That's great.

Bernie McTernan: That's great. Maybe just a quick follow-up for Alinda. We saw G&A, the adjusted G&A step up this quarter sequentially from about EUR 90 million to EUR 100 million. Was there any kind of one-time in nature there or any increased costs that we should be thinking about going forward?

Speaker #6: And then maybe just a quick follow-up for Linda. We said G&A, the adjusted G&A, stepped up this quarter sequentially from about $90 million to $100 million.

Speaker #6: Was there any kind of one-time item in there or any increased costs that we should be thinking about going forward?

Speaker #4: Yeah. Great pickup, Bernie. It is 100%. Like you said, there is quite—there's 40% of that increase is about once-off cost. There was some audit alignment for 2024.

Alinda van Wyk: Yeah, great pick-up, Bernie. It is 100% like you said, there's 40% of that increase is about one-off costs. There were some audit alignment for 2024, 2025 audit and some additional tech and infrastructure costs. Keep in mind that we've acquired two operational businesses. We brought in the Apricot operational business, so about 100 headcounts, as well as a small e-market or a marketing company called eMarket. That spiked the G&A, but the savings in the operating leverage will now standardize that call and stabilize that amount towards the end of this quarter, down again to a more normal benchmark of high EUR 90 million. Low EUR 90 million. Sorry.

Speaker #4: 2025 audit, and some additional taken infrastructure costs. Also, keep in mind that we've acquired two operational businesses. We brought in the Apricot business—an operational business.

Speaker #4: So, about 100 headcount, as well as a small e-market marketing company called E-Market. So that's like the G&A, but the savings and the operating leverage will now standardize that call and stabilize that amount towards the end of this quarter, down again to a more normal benchmark of high $90 million.

Speaker #4: Low, low 90 millions. Sorry.

Speaker #6: Yep. Understood. Thank you.

Bernie McTernan: Yep. Understood. Thank you.

Speaker #5: Your next question comes from the line of Ryan Sigdahl of Craig-Hallum. Your line is open.

Operator: Your next question comes the line of Ryan Sigdahl of Craig-Hallum. Your line is open.

Speaker #6: Hey, good day, Neil, Linda. I want to focus on some of the trading and operational items internationally. I know you were bringing some of the product from Africa to the international markets, as well as the Apricot integration, but I'm curious for an update on some of the synergies, cost optimizations, and product enhancements you've seen from those two initiatives.

Ryan Sigdahl: Hey, good day, Neal, Linda. I want to focus on some of the trading and operational things internationally. I know you were bringing some of the product from Africa to the international markets as well as the Apricot integration, but curious for an update on some of the synergies and cost optimizations and product enhancements you've seen from those two initiatives.

Speaker #6: Okay, so I think, funny enough, there’s some cross-pollination. What I’ve been talking about is top of mind. We’ve been doing it from international to Africa, and Africa back into international.

Neal Menashe: Okay. I think funny enough, there's some cross-pollination. What I've been talking about is top of mind. We've been doing it from international to Africa and Africa back into international. I'm pleased to announce that all our call centers now are under one roof on one tech stack, including our risk, and we are seeing massive opportunities there. I think you can see in our margins, everywhere we look in our EBITDA margins, in our sports margins, it's all starting to kick in. We've got the personalized pricing, our features, we're pushing different sports in Africa. It's finally all coming together, and this is the key of this, what we call cooperating efficiency, product efficiency, marketing efficiencies. Even the marketing efficiencies are starting to come in. We really are, remember, Alinda and I've been talking about this a lot.

Speaker #6: I mean, I'll please announce that all our call centers are now under one roof, on one tech stack, including our risk, and we are seeing massive opportunities there.

Speaker #6: I think you can see in our margins—everywhere we look, in our EBITDA margins, in our sports margins—it's all starting to kick in.

Speaker #6: We've got the personalized pricing, our features. We're pushing different sports in Africa. It's finally all coming together. And this is the key of what we call operating efficiency, product efficiencies, and marketing efficiencies.

Speaker #6: Even the marketing efficiencies are starting to come in, so we really are—and we remember, Linda and I have been talking about this a lot.

Speaker #6: It's all about increasing that margin, and you see it—you see it went to almost 30%, right? Which is even ahead of our own expectations, right?

Neal Menashe: It's all about increasing that margin and things this quarter, you see it went to almost 30%, right? Which is even ahead of our own expectations, right? Also, we've also got cross-sell opportunities. I think we are really Super happy with our teams, our product teams, our trading teams, and we're finally working as one Super Group and bringing the best to every country we operate in.

Speaker #6: And also, we have cross-sell opportunities. But I think we are really super happy with our teams—our product teams and our trading teams—and we are finally working as one Super Group, bringing the best to every country in which we operate.

Speaker #6: Brilliant slide eight—African new market expansion potential. Good to see Namibia coming in Q4. You mentioned excess cash and trying to figure out what to do with it.

Ryan Sigdahl: If I look at slide eight, African new market expansion potential. Good to see Namibia coming in Q4.

Neal Menashe: Yeah.

Ryan Sigdahl: You mentioned excess cash and trying to figure out what to do with it. I count seven additional adjacent countries there that seem very logical places to place some of that cash as an investment. How do you think about expansion, the need for cash, and if that's a potential use for it, and then the timeline to expand into those countries, and if some of your recent expansions.

Speaker #6: I count seven additional adjacent countries there that seem very logical places to place some of that cash as an investment. But how do you think about kind of expansion the need for cash and if that's a potential use for it and then the timeline to expand it in those countries and if some of your recent expansions maybe accelerate through that timeline that you've talked about with us?

Neal Menashe: Yeah

Ryan Sigdahl: maybe accelerates that timeline that you've talked about in the past.

Speaker #6: So yeah. So we all started about Namibia. Remember it borders Botswana and South Africa. So the brand recognition there is really high. And obviously other markets around there as well, but we have to get the taxes right and how the money flows.

Neal Menashe: Yeah. We got excited about Namibia. Remember, it borders Botswana and South Africa, so the brand recognition there is really high. There are obviously other markets around there as well, but we have to get the taxes right and how the money flows. There is Zimbabwe, Rwanda, there are lots of them. We are also aimed to launch probably one to three countries a year. I think three would be the top end, but like one or two. It has got to make sense. Of course, we have got the loads of money that if there are opportunities that are priced right and we can execute on, then we will obviously delve into that.

Speaker #6: There's Zimbabwe, Rwanda—there's lots of them. So we are also aiming to launch probably one, two, maybe three countries a year. I think three would be the top end, but more like one or two. But it's got to make sense.

Speaker #6: And of course, we've got loads of money, so if there are opportunities that are priced right and we can execute on them, then we will obviously delve into that.

Speaker #4: And just to add there, because of our trusted global brand that already resonates in these African countries, it is quite low-cost to market for us.

Alinda van Wyk: Just to add there, because of our trusted global brand already that resonate in these African countries, it is quite low cost to market for us. It is not like a launch in international market. In African market, launch is quite efficient and at a low value.

Speaker #4: So it's not like a launch in international markets. The African market launch is quite efficient and at a low value.

Speaker #6: Yeah, and then I would add that you'll have the headline of the Man new partnership, but I think what everyone needs to understand is, if you take the top three teams who came first, second, and third in the English Premier League—the EPL—last season, we are now the exclusive global betting partner for every single one of them.

Neal Menashe: Yeah. Then I would add that you will have the headline of the Man U partnership. I think what everyone needs to understand is if you take the top three teams who came first, second, and third in the English Premier League, the EPL last season, we are now the exclusive global betting partner for every single one of it. It is Arsenal, Manchester City, and Man U. When you see those games, you are only going to be seeing Betway. Remember, football, soccer in Africa is our number one bet on sports, and that is definitely the biggest league.

Speaker #6: So, it's Arsenal, Man City, and Man U. So when you see those games, you're only going to be seeing better. And remember, football—soccer—in Africa is our number one bet-on sport.

Speaker #6: And that's definitely the biggest league. Well done. Thanks, guys. Good luck. Thank you.

Ryan Sigdahl: All done. Thanks, guys. Good luck.

Neal Menashe: Thank you.

Speaker #5: Your next question comes from the line of Mike Hickey of Stonex. Your line is open.

Operator: Your next question comes from the line of Mike Hickey of StoneX. Your line is open.

Speaker #6: Hey, Neil and Inc., great quarter, guys—congratulations. I guess just on the World Cup, obviously you gave us some really incremental data on your success there. But Neil, just curious overall, maybe relative to your expectations, how you view the success of the World Cup now that you've had a chance to digest that.

Mike Hickey: Hey, Neal, Alinda, Inc. Great quarter, guys. Congratulations. I guess just on the World Cup, obviously you gave us some really incremental data on your success there. Just curious overall, maybe relative to your expectations, how you view the success of the World Cup now that you've had a chance to digest that, and how we should think about how you build momentum on that in terms of?

Speaker #6: How should we think about how you build momentum on that, in terms of customer retention and casino cross-sell? I think that sort of sets you up for Q3 trading that we're in now, and maybe the second half overall.

Neal Menashe: Yeah

Mike Hickey: customer retention, casino cross-sell, which I think has started really strong, and maybe how that sort of sets you up for Q3 trading that we're in now and maybe the H2 overall.

Speaker #6: So okay. When it comes to the World Cup, right, is obviously it's a mini it was really a mini for acquisition and engagement catalyst.

Neal Menashe: Okay. When it comes to the World Cup, obviously it was really a meaningful acquisition and engagement catalyst. That's for us, with the sports inflows. We did like almost 50% cross-sell into casino from those new customers. Here's the mad stuff about the World Cup, and I did mention this before. Still, the time zones were not ideal for a vast majority of our customers. Remember, in the World Cup, a big part of our business is parlay. They want 10D, 12D, 14D. You don't get that in the World Cup. For us, the World Cup was great, but it was not like this unbelievable event that we have. Our unbelievable event are what's about to start in August, September with the soccer season. We are very happy with how it's gone and how the activation of those customers. Yeah.

Speaker #6: So that's for us with the sports inflows. We did almost 50% cross-sell into casino from those new customers. But here's the math stuff about the World Cup.

Speaker #6: And I did mention this before, right? The time zones were not ideal for a vast majority of our customers. And remember, in the World Cup, a big part of our business is parlays, right?

Speaker #6: But they want 10D, 12D, 14D. You don't get that in the World Cup. So for us, the World Cup was great, but it was not like this unbelievable event that we have.

Speaker #6: Our unbelievable events are what's about to start in August and September with the soccer season. But we are very happy with how it's gone and how the activation of those customers.

Speaker #6: Yeah. And the cross-sell's been great, as I've said. And again, I mean, I keep saying this, sorry. I mean, I might be we keep bringing this up and I think we have to the persistency of our cohorts continues to be as strong as ever.

Neal Menashe: The costs have been great as I've said. Again, I keep saying this. Sorry, we keep bringing this up and I think we have to. The persistency of our cohorts continues to be as strong as ever. Even in our investor deck, I think on page 10 it is, showing the cohorts analysis. We put it in the deck this time along. You can see that layer caking is as it needs to be. Makes Spencer very happy, too.

Speaker #6: And even in our investor deck, I think on page 10 it is showing the cohorts analysis. We put it in the deck this time along.

Speaker #6: You can see that lag caking is as it needs to be, which will make Spencer very happy.

Speaker #7: A follow-up on the Africa question from Ryan: is Angola a new launch country? I know we've had Namibia for Q4. Are we also doing Angola now?

Mike Hickey: A follow-up on the Africa question from Ryan. Is Angola a new launch country? I know we've had Namibia for Q4. Are we also doing Angola now, and is that new to your guidance?

Speaker #7: And is that new to your guidance?

Speaker #6: No, it's not new. We just showed some of the countries. All these countries are in play. We just have to make sure that, again, the taxes and the way we can operate in those markets makes sense.

Neal Menashe: No, it's not. We just showed some of the countries there. All these countries are in play. We just have to make sure that again, the taxes and the way we can operate in those markets make sense. It's all fluid. We've got lots of them on the go, but the ones which will come to mission is if we can get the banking and everything right. They're all within our sight, and it's just got to make sense financially to be able to do them.

Speaker #6: So it's all fluid. We've got lots of them on the go, but the ones which will come to issue are if we can get the banking and everything right.

Speaker #6: So they're all within our sight, and it just has to make sense financially to be able to do this.

Speaker #7: All right, great. Last question—congrats on the Manchester United deal. Obviously, you already have some significant sponsorship deals. How are you able to add Manchester to your stable of other IP here and keep costs manageable, like it sounds like they're going to be in the second half?

Mike Hickey: All right, great. Last question. Congrats on the Manchester United deal. Obviously, you've already have some significant sponsorship deals. How are you able to add Manchester to your stable of other IP here and keep costs manageable like it sounds like they're going to be in the second half? How quickly do you think this new partnership can start to be a contributor for you in terms of customer acquisition and revenue? Thanks, guys.

Speaker #7: And how quickly do you think this new partnership can start to be a contributor for you in terms of customer acquisition and revenue? Thanks, guys.

Speaker #6: So, I think—remember, and Alin's pointed to this—we aim to be between 21% to 22% of revenue, so this is within that guide.

Neal Menashe: I think, remember, Alinda's pointed this, we aim to be between 21% to 22% of revenue, this is within that guide. Remember, our total marketing brand is a portion of the total marketing. I think with Man United, it is one of the most recognizable sports club in the world. In Africa, I think they've got like the biggest fan base. For us, it's just adding another team on top of that. We've still got the other teams we've got, we've still got the other leagues we do, it's all part of our strategy. Again, this is not our strategy. It's a portion of the strategy, and this is what's given our leadership in Africa, parting with them is just natural for us.

Speaker #6: So, and remember, of our total marketing, brand is a portion of the total marketing. And I think with Man United, it is one of the most recognizable sports clubs in the world.

Speaker #6: And in Africa, I think it's got the biggest fan base. So for us, it's just adding another team on top of that. But we've still got the other teams we've got.

Speaker #6: We've still got the other leagues we do, so it's all part of our strategy. But again, this is not our strategy—it's a portion of the strategy.

Speaker #6: And this is what's given our leadership in Africa. Partnering with them is just natural for us. And I think this is a long-term investment in our brand strength that then supports our sustainable customer growth across the key markets.

Neal Menashe: I think this is a long-term investment in our brand strength that then supports our sustainable customer growth across the key markets, and just adds to then our digital marketing comes on top of that, et cetera. Listen, for us, really exciting, and it's not that I'm a Man U fan, but I understand how unbelievable this football team is worldwide.

Speaker #6: And just adds to—then our digital marketing comes on top of that, etcetera. So listen, for us, we're really excited. And listen, not that I'm a Man U fan, but I understand how unbelievable this football team is worldwide.

Speaker #7: Nice. Thanks, guys. Good luck.

Mike Hickey: Nice. Thanks, guys. Good luck.

Speaker #5: Your next question comes from the line of Chad Banon of Macquarie. Your line is open.

Operator: Your next question comes from the line of Chad Beynon of Macquarie. Your line is open.

Speaker #7: Good morning, all. Nice quarter. Thanks for taking my question. I wanted to ask about the UK business. I know previously you talked about the mitigation efforts and what the expected impact would be.

Chad Beynon: Morning, all. Nice quarter. Thanks for taking my question. Wanted to ask about the UK business. I know previously you talked about the mitigation efforts and what the expected impact would be post the iGaming tax increase back in April. It sounds like the revenues and the profits are definitely better than expected. Can you just kind of talk about the cadence of what's happening in the market and if you expect to see maybe mitigation vary versus what you originally announced? Thank you.

Speaker #7: Post the iGaming tax increase back in April, it sounds like the revenues and profits are definitely better than expected. Can you just talk about the cadence of what's happening in the market, and if you expect to see maybe mitigation versus what you originally announced?

Speaker #7: Thank you.

Speaker #8: Thanks, Chad, for your question. We had significant product improvements this quarter as well in the UK. You can see it from the revenue uplift.

Alinda van Wyk: Thanks, Chad, for your question. We had significant product improvements this quarter as well in UK. You can see it from the revenue uplift. Our marketing is really returning to what we're spending at the moment, which is really good strategy, and I'm happy with that performance. We continuously, like we said previously, if your taxes go up, you have to be efficient around your marketing spend, actually around all your economics, and we have to improve every single dollar we spend in the UK. We're very happy with how the UK is going. We see obviously the impact on the EBITDA at this point in time in the international results, it is so important to note that by optimizing marketing to be becoming efficient in the way we operate in that market would just deliver better margin in that jurisdiction.

Speaker #8: Our marketing is really returning what we're spending at the moment, which is a really good strategy, and I'm happy with that performance. We continuously, like we said previously, if your taxes go up, you have to be efficient around your marketing spend.

Speaker #8: Actually, around all your economics, and we have to improve every single dollar we spend in the UK. So we're very happy with how the UK is going.

Speaker #8: We see, obviously, the impact on the EBITDA at this point in time in the international results. But it is so important to note that, by optimizing marketing to become efficient in the way we operate in that market, we just deliver better margin in that jurisdiction.

Speaker #6: And I'll just add, as we deploy more of our sports product enhancements, we're seeing the revenue stick even more. And that's really, really been great.

Neal Menashe: I'll just add, as we deploy more of our sports product enhancements, we're seeing the revenue stick even more. That's really been great. Plus, we've been clever in our casino operations there, and the whole market has now reset the UK market and the cost of acquisitions, et cetera. We're definitely seeing that play. Remember, we're not a major player in the UK, so there's a lot of market share we are getting, and that's again why when we've got our overall brand that we spend, Manchester United, Arsenal, et cetera, we amortize that over all the countries, not just the UK. In the UK, obviously, it's present a lot, so it gets a natural spillover there as well.

Speaker #6: Plus, we've been clever in our casino operations there. And the whole market now has to reassess the UK market and the cost per acquisition, etc.

Speaker #6: So, we’re definitely seeing that play. And remember, we’re not a major player in the UK, so there’s a lot of market share. We are getting a nice gain.

Speaker #6: Why? When we've got our overall brand spend, taking Man United, Arsenal, etc., we amortize that over all the countries, not just the UK. But in the UK, obviously, it's present a lot.

Speaker #6: So, it gets a natural fill over there as well.

Speaker #7: Thank you, both. And then maybe related to the UK—I know there was an announcement during the quarter from a competitor, just in terms of an acquisition.

Chad Beynon: Thank you both. Maybe related to the UK, I know there was an announcement during the quarter from a competitor just in terms of an acquisition. With your $500 million of cash and no debt, how are you prioritizing M&A, and are there markets that are more on your radar versus what you had previously talked about at the Investor Day or recently? Thank you.

Speaker #7: So, with your $500 million of cash and no debt, how are you prioritizing M&A? And are there markets that are more on your radar versus what you had previously talked about at the investor day or recently?

Speaker #7: Thank you.

Speaker #6: Yes, yes. Listen, M&A is always top of mind. I think we've been right so far. We need to be highly selective, and the price must be right.

Neal Menashe: Yes. Listen, M&A is always top of mind. I think we've been right so far. We need to be highly selective, and the price must be right. We must be able to add value. We will not overpay, and we do not need to rush. Again, we're always looking on bolt-on, we're always looking at M&A. You're right, we've got this money, we've got our shares, we've got lots of things to be able to use, but the deal has to make sense. I think we'll see a better pricing over the coming months and years based on where some of our competitors are, who've been very acquisitive in the past but now have this huge debt pile that they have to service. We are disciplined.

Speaker #6: We must be able to add value. We will not overpay, and we do not need to rush. But again, we're always looking at bolt-on opportunities.

Speaker #6: We're always looking at M&A, and you're right—we've got this money, we've got our shares, we've got lots of things to be able to use.

Speaker #6: But the deal has to make sense, and I think we'll see better pricing over the coming months and years based on where some of our competitors are.

Speaker #6: We've been very acquisitive in the past, but now have this huge debt pile that we have to service. But we are really disciplined.

Chad Beynon: Thanks, Neal.

Neal Menashe: We are really disciplined.

Speaker #7: Thank you.

Chad Beynon: Thank you.

Speaker #5: Your next question comes from the line of Matt Weber of Canaccord Genuity. Your line is open.

Operator: Your next question comes from the line of Matt Weber of Canaccord Genuity. Your line is open.

Speaker #9: Hi, good morning, guys, and congrats on the strong quarter. Thanks for taking the question. Maybe just to dive a little deeper on the World Cup.

Matt Weber: Hi. Good morning, guys, congrats on the strong quarter. Thanks for taking the question. Maybe just to dive a little deeper on the World Cup. I think I saw a 21% World Cup gross margin versus 11% in 2022. Could you just unpack a little bit more how much of that is structural from increasing parlay adoption versus maybe more outcome driven? Then I have a quick follow-up.

Speaker #9: I think I saw a 21% World Cup gross margin versus 11% in 2022. Could you just unpack a little bit more how much of that is structural from increasing parlay adoption versus maybe more outcome-driven?

Speaker #9: And then I have a quick follow-up.

Speaker #6: Well, I think definitely structural, and also remember that the Africa business is much bigger now than it was four years ago. But I think it's everything.

Neal Menashe: Well, I think definitely structural. Also remember the Africa business is much bigger now than it was 4 years ago. I think it's everything. It's our pricing, it's how we've done it's how we price the markets, what the product has to offer. I think from that point of view, it was definitely for us, a great World Cup. Remember, we should expect our sports margins to be between 13% and 14% combined. That's for international and Africa. That's, I think, is a good cadence for you guys to see. The sports and the margin, we are really getting better at, and I think the team has done a great job there.

Speaker #6: It's our pricing. It's how we've done it. It's how we price the markets, what the product has to offer. So, I think from that point of view, it was definitely, for us, a great World Cup.

Speaker #6: But remember, we should expect our sports margins to be between 13% to 14% combined. That's for International and Africa. And that's, I think, a good cadence for you guys to use.

Speaker #6: But the sports and the margin—we are really getting better at, and I think the team has done a great job there.

Speaker #9: Got it, thanks. And I appreciate your comments earlier on the casino cross-sell. Just curious, the 53% number from the World Cup cohort that has already placed a casino wager—how does that compare to the 2022 cohort?

Matt Weber: Got it. Thanks. Appreciate your comments earlier on the casino cross-sell. Just curious how the 53% number of the World Cup cohort that has already placed a casino wager, how does that compare to the 2022 cohort, and what are your expectations in terms of engagement from that group, say, 1 year out from now? Thanks.

Speaker #9: And what are your expectations in terms of engagement from that group, say, a year out from now? Thanks.

Neal Menashe: Okay. I think the cross-sells for 2022 was 23%. It's really, really, really. We were all over this. This was one of our key areas. Remember why it was important for us to do this cross-sell, the time zones were not right. We were even more adamant to keep the customers in our ecosystem. Yes, we're really happy with that. I think the World Cup generally did really well, but I think we're even more excited now for the start of the new football season, the EPL, the La Liga, et cetera. That'll start towards the end of August.

Speaker #6: Okay. So I think the cross-sells for 2022 was 23%. That's really, really—really, we were all over this. This was one of our key areas.

Speaker #6: And remember why it was important for us to do this cross-sell. The time zones were not right, so we were even more adamant to keep the customers in our ecosystem.

Speaker #6: So we're really happy with that, and I think the World Cup generally did really well. But I think we are even more excited now for the start of the new football season—the EPL, La Liga, etc.

Speaker #6: And that will start toward the end of August.

Speaker #9: Thank you.

Matt Weber: Thank you.

Speaker #5: Your last question comes from the line of Clark Lampin of BTIG. Your line is open.

Operator: Your last question comes from the line of Clark Lampen at BTIG. Your line is open.

Speaker #7: Thanks very much for squeezing me in. Maybe one just to come back to sort of the margin point. Neil, you made some comments earlier that made it sound like this was sort of an important transition quarter from an operational standpoint.

Clark Lampen: Thanks very much for squeezing me in. Maybe one just to come back to sort of the margin point. Neal, you made some comments earlier that made it sound like this was sort of an important transition quarter from an operational standpoint. I'm curious when we get into 2027 and you're annualizing some of these improvements and changes, how should we think about sort of medium-term margin trajectory? Are we coasting towards a number that's sort of consistent with what we saw in Q2? Are there other sort of important puts and takes that we need to consider from a timing standpoint or maybe the Man U deal is a factor in 2027 that's sort of transitional. Would just be curious sort of directionally where we're going and what you think is possible. Thanks a lot.

Speaker #7: And I'm curious, when we get into 2027 and you're annualizing some of these improvements and changes, how should we think about, sort of, medium-term margin trajectory?

Speaker #7: Are we coasting towards a number that's sort of consistent with what we saw in Q2? Are there other important puts and takes that we need to consider from a timing standpoint, or maybe the new deal is a factor in 2027 that's sort of transitional? I would just be curious, directionally, where we're going and what you think is possible.

Speaker #7: Thanks a lot.

Speaker #6: Okay. So I will do my Sports margin, EBITDA margin, both. Do you want both? I'll put them on both.

Neal Menashe: Okay. Are we talking about sports margin, EBITDA margin, both? Do you want both? I can put it to both.

Clark Lampen: Well, sure, we can do both. I guess I'm a little more curious on the EBITDA margin side.

Speaker #7: Well, sure. We can do both. But I guess I'm a little more curious on the EBITDA margin side. Thanks for your question. We obviously are very excited about this quarter being a 30% EBITDA margin.

Neal Menashe: Okay. I'll even Go for it, Linda.

Neal Menashe: Okay. I'll even Go for it, Alinda.

Alinda van Wyk: Thanks for your question. We're obviously very excited about this quarter being a 30% EBITDA margin. It's the first time we've called out a solid 30%, which is definitely the right direction, and all our operating leverage is our primary driver for this EBITDA margin expansion. Remember, it's quite simple. Our revenue grows faster than our cost base at this stage, which makes us very efficient, and we are realizing efficiencies across the board. It's not just in one specific site. It's around trading, marketing, processing, in technology. If you want to look at models and how to model it maybe for the rest of the year, we still see, in H2, obviously, the World Cup effect and the cross-sell that will come in. We've included Alberta in migration, which will be completed by the end of September.

Speaker #7: It's the first time we called out a solid 30%, which is definitely the right direction. In all our operating leverages, our primary driver for this EBITDA margin expansion—remember, it's quite simple.

Speaker #7: Our revenue is growing faster than our cost base at this stage, which makes the business very efficient. We are realizing efficiency across the board; it's not just in one specific area.

Speaker #7: It's around trading, marketing, processing, and technology. And if you want to look at models, and how to model it, maybe for the rest of the year—in half year two, obviously, the World Cup effect and the cross-sell that will come in.

Speaker #7: We've included Alberta migration, which will be in by the end will be completed by the end of September. And then we've called out Namibia as our one launch country in 2026.

Alinda van Wyk: We called out Namibia as our one loans country in 2026. All in all, we continue to build brand and partnerships so that we can work on the acquisition numbers.

Speaker #7: But all in all, we continue to build brand and partnerships so that we can work on the acquisition numbers.

Speaker #6: Yeah. And in 2027, I imagine in 2027, we’ll get closer to the 30%. Obviously, this quarter is slightly less of marketing than Q2, as you would expect.

Neal Menashe: Yeah. 2027, I imagine is, yes, we'll get closer to the 30%. Obviously, this quarter, slightly less of mark than in Q2, as you would expect. Overall, is that getting closer to what Melinda promised the city, even, hey?

Speaker #6: But overall, it's getting closer to what Linda promised—the 30—even though. So we did promise, we did deliver that, so now we've got to keep.

Alinda van Wyk: Yes.

Neal Menashe: We did promise, we did deliver that.

Alinda van Wyk: Promise 2027.

Speaker #7: Promised 2027?

Speaker #6: Yeah. So now we’ve got to promise to get closer to that for 2027. But I think the ecosystem and the correct customers in our ecosystem are what this business is all about.

Neal Menashe: Now we've got to promise that we'll get closer to that for 2027. I think the ecosystem and the correct customers in our ecosystem is what this business is all about. It's about having the right customers, paying the right amounts for them, et cetera. Of course, and I'll end off with this, the cross-pollination of our international to Africa is really starting to show great signs, which we knew it would.

Speaker #6: It's about having the right customers, paying the right amounts for them, etc. And I think we're starting to see that come. And, of course—and I'll end off with this—the cross-pollination of our international to Africa is really starting to show great signs, which we knew it would.

Speaker #7: If I may, I'd actually just like to squeeze in one additional question. I know at points in the past you have given either entry or exit rates from a customer account standpoint.

Clark Lampen: If I may actually just squeeze in one additional one. I know at points in time in the past, you guys have given either entry or exit rates from a customer account standpoint. If you have a July number handy, could you give us a feel for where the active base is trending right now? Maybe alongside that, what have you seen, if anything, if it's notable to call out from a results standpoint, to start Q3? We've heard from some operators that the World Cup was a tailwind to performance. Did you experience something similar to start Q3?

Speaker #7: If you have a July number handy, could you give us a feel for where the active base is sort of trending right now? And maybe alongside that, what have you seen, if anything, if it's notable to call out from a results standpoint to start Q3?

Speaker #7: We've heard from some operators that the World Cup was a tailwind to performance. Did you experience something similar to start Q3?

Speaker #6: Okay. So, okay, I think obviously there still was the World Cup in the beginning of the first two weeks of July. So, yes, we've seen good momentum in—we've seen good momentum in July.

Neal Menashe: Okay.

Clark Lampen: Thank you.

Neal Menashe: I guess so. I think obviously there still was the World Cup in the beginning of the first 2 weeks of July. Yes, we saw good momentum, and we're seeing good momentum in July. I also think where the year now is now, we don't have a World Cup, and as I'll give you an example, like in last March, is there were so many bets on these other leagues, the Champions League, Europa League, et cetera, these games, that did really great volume because again, for a large portion of our customer base, it's all about these parlays, and that's what we need. The World Cup never gave that, and it didn't give us the right time zone.

Speaker #6: I also think we’re gearing up as well. We don’t have the World Cup. And I’ll give you an example: last night, there were so many bets on these other leagues—the European leagues, the Champions League, Europa League, etc.—these games did really great volume because, again, for a large portion of our customer base, it’s all about these parlays.

Speaker #6: And that's what we need. And the World Cup never gave that. And it didn't give us the right time zone, so it was really an add-on in the middle of the year.

Neal Menashe: It was really an add-on in the middle of the year, but we're definitely seeing our customer base starting to get excited, and I really think towards the middle to the end of August, this is our big play from now till the end of the year.

Speaker #6: But we've definitely seen our customer base starting to get excited. And I really think, towards the middle to the end of August, this is our big play from now to the end of the year.

Speaker #7: And then, just to conclude there, because we had such a great start to the quarter, that's why we just came out and raised our guidance again.

Alinda van Wyk: Yeah. Just to conclude there, because we had such a great start to the quarter, that's why we just came out and raised our guidance again.

Speaker #7: Thanks, guys.

Neal Menashe: Yeah. I think both for Alinda and I, and the whole team, the ecosystem is in a great place. From cost base, cost efficiencies, product, it's all coming together.

Speaker #6: Yeah, and I think both from Linda and me, and the whole team, the ecosystem is in a great place. From cost base, cost efficiencies, product—it's all coming together.

Speaker #5: With no further questions, that concludes our Q&A session. I'll now turn the conference back over to Neil Meneshi for closing remarks.

Operator: With no further questions, that concludes our Q&A session. I will now turn the conference back over to Neal Menashe for closing remarks.

Speaker #6: Thanks, everyone, for joining today's call. We are really, really proud of the team's execution, and we remain focused on delivering against our strategy and creating long-term shareholder value.

Neal Menashe: Thanks everyone for joining today's call, and we are really proud of the team's execution, and we remain focused on delivering against our strategy and creating long-term shareholder value. We look forward to speaking to you all again soon. Thank you.

Speaker #6: We look forward to speaking with you all again soon. Thank you.

Alinda van Wyk: Thank you.

Speaker #7: Thank you.

Operator: This concludes today's conference call. You may now disconnect.

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