Colossal Ventures reported a reduction in income and earnings for the third quarter.
Income for the third quarter was €307.8 million (£265.9 million/$315.8 million), down 1.5% year-over-year, while earnings dropped significantly by 30.8%.
Colossal Ventures stated the decrease in income was mainly due to a reduction in net income from online gambling establishments and brand licensing charges.
Despite this, Alinda van Wyk, Chief Financial Officer of Colossal Ventures, stated the company is in “good financial condition” and is seeking investments.
“Colossal Ventures remains financially robust, and we continue to optimize our global business presence and enhance operational efficiency to leverage our size,” van Wyk stated. “We remain focused on investing in technology and marketing, as well as other opportunities that can drive long-term growth and profitability.”
Betway, one of Colossal Ventures’ brands, generated €168.1 million in revenue. The company’s multi-brand casino product, Spin, generated the remaining €139 million.
The majority of total revenue came from North America, which contributed €123 million. Africa and the Middle East contributed €70 million, followed by Asia Pacific, which contributed €68.4 million.
Europe contributed €38.4 million to total revenue, while South America and Latin America contributed €7.7 million.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) for the quarter was €60.9 million, down 19.6%.
Promotional and marketing expenditures rose consecutively from €204.7 million to €226.9 million. General and administrative costs also climbed by 11.7% to €36.9 million. Although this was partially balanced by €1.8 million in operating earnings, depreciation and amortization expenses of €15.7 million further influenced the overall result.
This led to a total operating profit of €30 million, a substantial reduction of 65.8% year-over-year.
Other expenses continued to affect the total. Financial charges reached €276,000, while foreign currency exchange revaluations totaled €5.7 million. Fair value changes on warrants and earn-out obligations amounted to €3.5 million.
However, other forms of income surpassed these costs. Fair value recognition of options totaled €21.9 million, while derivative contract gains brought a €2.4 million increase. Financial income also rose by €587,000.
Total profit before taxes reached €45.5 million, down 17% year-on-year. After considering €10.6 million in income tax expense, profit for the quarter was €34.8 million, a loss of 30.8%.
Year-to-date, income is €963.1 million. This is down 1.6% from the first nine months of 2021. Operating profit for the period is €99 million, and profit before taxes currently stands at €195.4 million. Income tax currently stands at €25.2 million, with profit for the first three quarters at €170.2 million.
Earlier this month, Super Group reaffirmed its initial guidance for the full year 2022, anticipating revenue to be between €1.15 billion and €1.28 billion, and EBITDA to be between €200 million and €215 million.
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