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First six-month revenue growth of 23% and adjusted EBITDA growth of 42%
On track to deliver record annual revenue
Reaffirmation of the annual outlook with revenue growth between 24% and 26% and Adjusted EBITDA between 25% and 33%
Sportradar Group AG, a global leader in sports technology focused on creating immersive sports experiences for fans and bettors worldwide, announced today its financial results for the second quarter ending June 30, 2023.
Carsten Koerl said, “We’re very proud of the strong performance we had in the first half 2023, and remain on course to achieve the largest annual revenue ever recorded by the company.” We hold a key position in the global sport ecosystem. Our talent, technology and product diversity positions us to achieve strong growth in the future as we continue to implement our strategic initiatives.
Financial Highlights for the Second Quarter of 2023
- The revenue in the second half of 2023 grew 22%, to EUR216.4 millions, compared to the second half of 2022. This growth was seen across all segments.
- The customer retention rate (NRR), which measures the strength of the company in upselling and cross-selling, was 120% during the second quarter 2023 as compared to the first quarter 2023.
- Total profit for continuing operations decreased by EUR22.8m compared to the same quarter of last year. This included a EUR8m one-time loss from disposing an equity investment. The main reason for the decline was a negative net impact of foreign exchange rates. The company’s EBITDA1 adjusted for the same period increased by 46%, to EUR40.1m, in comparison with the second quarter 2022. This was primarily due a strong revenue growth and a higher operating leverage.
- Total profit as a percent of revenue in the second quarter 2023 was zero, compared to 13% last year. The adjusted EBITDA margin1 in the second quarter 2023 was 19%, which is an increase of nearly 300 bps over the previous year period.
- Sportradar’s total liquidity was EUR484million as of June 30th 2023. This included EUR264million in cash and cash equivalents and EUR220million of undrawn credit facilities.
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Key Financial Metrics |
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|
Q2 |
Q2 |
Change |
||||
| EUR |
2023 |
2022 |
% |
|||
| Earnings | 216.4 | 177.2 | 22% | |||
| Profit from ongoing operations | 0.03 | 22.8 | (100%) | |||
| Profit from ongoing operations for the period as a percent of revenue | 0% | 13% | – | |||
| Adjusted EBITDA1 | 40.1 | 27.6 | 46% | |||
| Adjusted EBITDA margin1 | 19% | 16% | – | |||
| Net Retention Rate | 120% | 118% | – | |||
_________________________
Non-IFRS measure. See “Non-IFRS Measures and Operational Metrics”, and the accompanying tables, for more information and reconciliations between non-IFRS and IFRS measurements.
Recent Company Highlights
Sportradar has continued to strengthen its relationship with United States operators, including an extension of its longstanding agreement with Caesars Entertainment. This makes Sportradar the official provider of betting data for leagues such as the NBA, MLB, and NHL. The recent signings of the company demonstrate its commitment to providing engaging experiences for clients and effectively monetizing league partnerships by creating innovative products and services.
- Sportradar has been selected by CONMEBOL as its exclusive global betting partner. This is to increase the engagement and accessibility of South American soccer for a wider global audience.
- Delhi Capitals has appointed Sportradar as its official technology partner. The three-year agreement will use innovative video technology for developing cricket talent. Sportradar is continuing to develop relationships with emerging markets, such as India, that have strong sports fanbases.
- Sportradar held its first Elite Prep Basketball Tournament in Las Vegas, the Sportradar Showdown. The tournament featured amateur basketball teams from the Under Amour Association Adidas 3SSB, and NBA Academy. Sportradar Synergy was used to capture data and provide valuable insights to college coaches and NBA talent-scouts.
- The company received multiple awards during the second quarter. Sportradar won multiple awards in the second quarter.
Segment Information
RoW Betting
Segment revenue increased 20% in 2023 compared to 2022, reaching EUR114.1 millions. This growth was mainly driven by the increased sales of higher-value offerings, including MBS which grew 25% to EUR41.1 millions, and Live Odds and Live Data that grew 19% over the past year.
Segment adjusted EBITDA1 increased by 18% in the second half of 2023 to EUR51 millions compared to the second half of 2022. Segment adjusted EBITDA Margin1 was unchanged at 45%.
RoW audiovisual (AV).
Segment revenue increased by 25 percent to EUR 49.6 million in the second half of 2023 compared to the second half of 2022. The new CONMEBOL agreement and the growth of sales to existing and new customers were responsible for driving revenue growth.
Segment adjusted EBITDA1 increased by 26% in the second quarter 2023 to EUR16,4 million from EUR16,4 million in the second half of 2022. Segment adjusted EBITDA Margin1 remained at 33 % year-over-year.
United States
Segment revenue increased 31% in the second half of 2023 to EUR38 millions compared to the second half of 2022. The growth in the betting, gaming and audiovisual product categories accounted for 105% of the total.
Segment adjusted EBITDA1 was EUR5.4m in the second half of 2023, compared to a loss (EUR5.5m) in the same quarter in 2022. This shows the significant improvement in operational leverage of the United States model in spite of continuous investments. Segment adjusted EBITDA Margin1 increased to 14%, from (19%) in the second quarter 2022.
Non-IFRS measure. See “Non-IFRS Measures and Operational Metrics”, and the accompanying tables, for more information and reconciliations between non-IFRS and IFRS measurements.
The following tables show information about each segment that is reportable for the periods of three and six months ending June 30, 2022, and 2023.
|
Three months ended June 30, 2022 |
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|
in EUR’000 |
RoW Betting |
RoW Betting |
United States |
Total reportable segments |
All Other Segments |
Total |
||||||
| Segment revenue | 95,513 | 39,741 | 29,066 | 164,320 | 12,869 | 177,189 | ||||||
| Segment Adjusted EBITDA | 43,324 | 13,053 | (5,498 | ) | 50,879 | (4,899 | ) | 45,980 | ||||
| Unallocated Corporate Expenses (1) | (18,427 | ) | ||||||||||
| Adjusted EBITDA1 |
27,553 |
|||||||||||
| Adjusted EBITDA margin1 | 45 | % | 33 | % | (19 | %) | 31 | % | (38 | %) |
16 |
% |
|
Three months ended June 30, 2023 |
||||||||||||
|
in EUR’000 |
RoW Betting |
RoW Betting |
United States |
Total reportable segments |
All Other Segments |
Total |
||||||
| Segment revenue | 114,149 | 49,569 | 37,959 | 201,677 | 14,757 | 216,434 | ||||||
| Segment Adjusted EBITDA | 51,041 | 16,418 | 5,441 | 72,900 | (2,560 | ) | 70,340 | |||||
| Unallocated Corporate Expenses (1) | (30,238 | ) | ||||||||||
| Adjusted EBITDA1 |
40,102 |
|||||||||||
| Adjusted EBITDA margin1 | 45 | % | 33 | % | 14 | % | 36 | % | (17 | %) |
19 |
% |
|
Six-Months Ending June 30, 2022 |
||||||||||||
|
in EUR’000 |
RoW Betting |
RoW Betting |
United States |
Total reportable segments |
All Other Segments |
Total |
||||||
| Segment revenue | 182,250 | 85,664 | 54,733 | 322,647 | 22,418 | 345,065 | ||||||
| Segment Adjusted EBITDA | 87,942 | 21,987 | (11,920 | ) | 98,009 | (8,613 | ) | 89,396 | ||||
| Unallocated Corporate Expenses (1) | (35,142 | ) | ||||||||||
| Adjusted EBITDA1 |
54,254 |
|||||||||||
| Adjusted EBITDA margin1 | 48 | % | 26 | % | (22 | %) | 30 | % | (38 | %) |
16 |
% |
|
Six-Months Ending June 30, 2023 |
||||||||||||
|
in EUR’000 |
RoW Betting |
RoW Betting |
United States |
Total reportable segments |
All Other Segments |
Total |
||||||
| Segment revenue | 222,649 | 94,123 | 77,696 | 394,468 | 29,530 | 423,998 | ||||||
| Segment Adjusted EBITDA | 98,429 | 27,759 | 12,265 | 138,453 | (5,707 | ) | 132,746 | |||||
| Unallocated Corporate Expenses (1) | (55,973 | ) | ||||||||||
| Adjusted EBITDA1 |
76,773 |
|||||||||||
| Adjusted EBITDA margin1 | 44 | % | 29 | % | 16 | % | 35 | % | (19 | %) |
18 |
% |
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Annual Financial Outlook
Sportradar has reaffirmed the range of revenue and adjusted EBITDA1 that it provided on March 15, 2020 for fiscal 2023.
- Revenue between EUR902.0 and EUR920.0 millions, which represents a growth of 24 to 26 percent over fiscal 2022.
- EBITDA1 adjusted in the range EUR157.0 to EUR167.0, which represents a 25% to 33% increase compared to last year.
- EBITDA adjusted margin1 between 17% and 18%.
Information on Conference Calls and Webcasts
Sportradar will hold a conference to discuss its second quarter results for 2023 today, 8 August 2023 at 8am Eastern Time. If you wish to listen via webcast, please visit Sportradar Investor Relations. The company’s Investor Relations site will archive the webcast and accompanying slides for a year following the event.
