Read on to discover everything you need to know about investing in Super Group shares:
Special Purpose Acquisition Companies (SPAC) is a company that has no commercial operations and was created to raise capital through an initial public company, aiming to acquire an existing company.
Commonly known as “blank check corporations,” the SPACs have been around for a long time. However, it wasn’t until recently that these companies became popular among big corporations that use them to raise record IPO money.
Fact: By August 2020, over 50 SPACs were created in the United States. They have already raised over C$26.38 billion.
Super Group is an iGaming giant that holds licenses in 23 jurisdictions across Africa, Europe and the Americas. The company’s analysts say that they can quickly scale to new markets, especially since they have an extensive database with marketing data that can maximize player retention.
The company’s clients generated revenue of over C$52 billion in 12 months. Super Group officials declared that the company currently has 2.5 million unique active users every month.
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Super Group Holding owns two of the most prominent online gaming brands on the market – Spin and Betway.
But that kind of reputation doesn’t come out of thin air.
The company has a solid marketing strategy that so far helped them amass a large number of players.
Here are the three main communication channels that they used to promote their platforms:
One of the primary competitive advantages of Super Group’s Betway is their brand partnerships. They are well-known for their endorsements with NBA teams like Brooklyn Nets, Chicago Bulls, LA Clippers and the Golden State Warriors.
Betway is also the leading partner of EPL team West Ham United and eSports pro team Ninjas in Pyjamas. By becoming sponsors for various sports teams, their brand awareness is continually expanding to a wide range of audiences worldwide.
One of the primary traffic sources for Super Group Holding is affiliate marketing. For those who are not familiar with the term, an iGaming affiliate platform is a site run by a third party that promotes the casino in exchange for a commission.
While this tactic could seem sketchy for some of you, it works like a charm. That’s because most of these sites are run by industry experts. Thus, any gambler looking for a transparent review of a casino platform will eventually land on an affiliate website.
After a quick analysis, we’ve identified one of the most reliable Canadian gaming expert website. Based on our findings, authoritative affiliates share some common elements, including professional reviews, in-depth gambling guides and a complete list of casino offers.
Not only are the gambling affiliates an excellent marketing tool for Spin and Betway, but they also provide immense value to the players.
It’s easy to understand why the affiliate platforms are the most efficient promotion technique – they bring targeted traffic that is genuinely interested in joining a casino. Despite having to pay a solid commission to the affiliate, the operator can use their retention strategies to extract more money from that player in the long run.
The company is famous for its edgy commercials that spark the attention of the viewers. Still, their ads are not available in every country due to different advertising policies.
Through intelligent tracking technologies, the iGaming corporation can directly target their audience through various mediums, including social media, Youtube, and the Google Adsense networks.
Thus, anyone who visits their website will be registered in a database. That information will be later used (if available) for retargeting ads.
The Super Group Holding company’s primary focus is to launch in the US sports betting market. Thanks to the Supreme Court’s decision to lift the federal ban on gambling in 2018, the iGaming corporation started negotiating with the Digital Gaming Corporation for operational rights in 10 US states.
Among the states that are part of the agreement are Colorado, New Jersey, Iowa and Indiana, all part of the initial wave of online betting legalization. Digital Gaming Corporation declared that they’re working with Super Group to expand their licensing procedures beyond the initial ten states.
Another key strategy for growth is obtaining mergers and acquisitions of high-value technological stacks and B2C online casino platforms.
Once the SPAC deal is complete, the company will become debt-free and gain an additional C$245 million cash.
At the end of 2020, Super Group had C$1.3 billion net revenue and C$317 million in EBITDA (earnings before interest, taxes, depreciation and amortization), paid on a pro forma basis.
Here is the breakdown % of revenue in 2020:
- Americas – 48%
- Europe – 21%
- Africa – 12%
- Other jurisdictions – 18%
The company forecasts revenue of C$2 billion in 2021 and C$2.2 billion in 2022. The EBITDA estimates are even more impressive – C$430 million in fiscal 2021 and C$515 million in fiscal 2022.
Based on Super Group’s analysts, the compound annual revenue growth between 2020 and 2022 will be 23.1%, compared to 20.2% for Flutter Entertainment. Their EBITDA margins are estimated to 23.6%, which beats Flutter’s 21.3%.
These extremely optimistic forecasts are purely based on the SPAC deal that can potentially multiply their revenue by 2.6 times by the end of the 2022 fiscal year. Last Friday, a share of Sports Entertainment Corp
So, should you invest in the Super Group Holding SPAC deal?
Well, it depends on your portfolio and preferences. If you’re the type of trader that loves to invest in iGaming businesses, this SPAC is an excellent addition to your watch list.
Remember that trading is a risky activity that can result in capital losses. Never invest more money than you can afford to lose, and use a portfolio diversification strategy to minimize your risks.
Disclaimer: Article has been created in association with I SmartMedia.