Shares of Super Group (SGHC -1.29%) are plunging 18% at 11:29 a.m. ET on Wednesday after the sports betting and casino app reported first-quarter results that missed Wall Street expectations on the top and bottom line.
Super Group went public earlier this year, merging with the special purpose acquisition company (SPAC) Sports Entertainment Acquisition on Jan. 27. It opened for trading the next day at $8.60 per share and made it as high as $11.09 per share last month, but has bounced around and is currently going for $6.66 per share, 40% below those highs.
The parent company of Betway, a leading online sports betting and gaming app, and Spin, a multi-brand online casino, is reportedly looking to recast its fiscal-year 2022 guidance and will update investors when it reports second-quarter results, according to Benchmark analyst Mike Hickey.
As The Fly reports, Hickey foresees Super Group lowering its outlook when it does issue the new guidance. He called the Q1 performance "disappointing," though he still has a buy rating on the stock.
Super Group CFO Alinda Van Wyk pointed to industry and economic headwinds as challenges the sports betting stock had to overcome this quarter, but it was still able to generate growth. "Despite tough period over period comparisons, Super Group experienced revenue growth and a year over year 39% increase in cash and cash equivalents," she said in a statement.
The market, though, is duly unimpressed and is sending the stock careening lower.