SGHC Q3 revenue rises 10% but misses estimates

Overview

• Online betting and gaming firm's Q3 revenue rose 10% yr/yr but missed analyst expectations

• Q3 net income rose to $142 mln, beating analyst estimates

• Company authorized $150 mln share repurchase program through December 2027

Outlook

• Super Group revises FY2026 revenue guidance to $2.525-$2.575 bln

• Company now expects FY2026 adjusted EBITDA between $700 mln and $720 mln

• Revised guidance reflects impact of customer-friendly sports outcomes

Result Drivers

• CASINO GROWTH - Co said casino gross revenue increased 16% and provided a durable earnings base amid sports volatility

• CUSTOMER-FRIENDLY SPORTS RESULTS - Co said sports outcomes reduced revenue by $40 mln and adjusted EBITDA by $25 mln

• AFRICA PROFITABILITY - Co said profitability was strong across Africa, with segment revenue rising to $262 mln from $224 mln

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the casinos & gaming peer group is "buy"

• Wall Street's median 12-month price target for SGHC Limited is $19.00, about 75.4% above its November 2 closing price of $10.83

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads

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• Nov 3 - Shopify Q3 revenue rises 32%, GMV hits $119 bln

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)