Super Group SGHC Ltd

Net cash generated by operating activities decreased by €34.0 million for the year ended December 31, 2023, to €132.8 million, compared to €166.8 million for the year ended December 31, 2022.

Cash generated from operating activities declined as a result of the reduction in profit for the year of €190.9 million from 2023 to 2022, adjusted for non-cash operating activities, which increased by €207.9 million. There was an additional decrease in working capital of €35.8 million from 2023 to 2022 as well as net cash outflows relating to taxes increasing by €15.2 million from 2023 to 2022. The main driver of these additional cash outflows in 2023 related to a change from a positive cash flow from trade and other receivables in 2022 to a negative cash flow from trade and other receivables in 2023, which is mainly as a result of an increase in prepayments as well as an increase in gaming related receivable balances, such as progressive pot, as at December 31, 2023. Additionally, cash paid relating to corporate tax increased in 2023 compared to 2022. This was offset by trade and other payables moving from a negative cash flow in 2022 to a positive cash flow in 2023.

Cash generated by operating activities for the year ended December 31, 2023 included 12 months of inflows for Verno Holdings Limited compared to the year ended December 31, 2022 where only 4 months of cash inflows was included relating to Verno operations. The year ended December 31, 2023 also includes net cash outflows relating to Digital Gaming Corporation following the acquisition, which are not present in December 31, 2022.

Net cash generated by operating activities was €209.9 million for the year ended December 31, 2021 and was €166.8 million for the year ended December 31, 2022, a decrease of €43.0 million.

Cash generated by operating activities declined from the year ended December 31, 2021 to the year ended December 31, 2022 as a result of the reduction in profit for the year of €53.6 million, adjusted for non-cash operating activities, which decreased by €47.3 million. This reduction was offset by positive impact from an increase in working capital of €66.0 million from 2021 to 2022. This included cash receipts from trade and other receivables of €66.2 million, driven by the decrease in outstanding processor receivables as a result of increased efficiency in the recovery of aged balances and reduced days outstanding, as well as the receipts of outstanding receivables for brand license fees and sponsorship and brand costs from license partners.