Sportradar reports strong 2Q 2023 results

Carsten Koerl, Chief Executive Officer of Sportradar said: “We are very proud of our strong performance during the first half of 2023 and remain on track to achieve the highest annual revenue in the Company’s history. We hold a pivotal position in the global sports ecosystem and believe our talent, technology and diverse product offering positions us for strong future growth as we continue to execute against our strategic initiatives.”

Second Quarter 2023 Financial Highlights

• Revenue in the second quarter of 2023 increased 22% to €216.4 million compared with the second quarter of 2022 with growth across all segments.
• The Company’s customer Net Retention Ratio (NRR) remained at 120% in the second quarter of 2023, compared with the first quarter of 2023, demonstrating the Company’s strength in cross selling and upselling to its clients.
• Total Profit from continuing operations, which included an €8.0 million one-time loss on disposal of an equity investment, decreased €22.8 million compared with the same quarter last year. The primary driver for the decrease was a net negative impact from foreign exchange rates. The Company’s Adjusted EBITDA1 for the same period increased 46% to €40.1 million compared with the second quarter of 2022, primarily due to strong revenue growth and higher operating leverage.
• Total Profit from continuing operations, as a percentage of revenue, for the second quarter of 2023 was 0% compared with 13% for the same quarter last year. Adjusted EBITDA margin1 was 19% in the second quarter of 2023, an increase of almost 300 bps, compared with 16% in the prior year period.
• As of June 30, 2023, Sportradar had total liquidity of €484 million including cash and cash equivalents of €264 million, and an undrawn credit facility of €220 million.

1 Non-IFRS financial measure; see “Non-IFRS Financial Measures and Operating Metrics” and accompanying tables for further explanations and reconciliations of non-IFRS measures to IFRS measures.

Recent Company Highlights

• Sportradar continued to deepen its relationships with U.S. operators, including an expansion of its long-standing agreement with Caesar’s Entertainment, establishing the Company as the official supplier of betting data from leagues including the NBA, MLB, and NHL. The Company’s recent signings demonstrate its commitment to delivering engaging experiences for its clients while effectively monetizing its league partnerships through the value-added creation of innovative products and solutions.
• Sportradar was selected as the exclusive global betting partner by CONMEBOL, the governing body of ten National Soccer Associations in South America, to enhance the accessibility and engagement of South American football for a broader global audience.
• Sportradar was appointed as the official technology partner by the Delhi Capitals. The new three-year partnership will provide innovative video technology to develop cricket talent. Sportradar continues to build relationships in emerging markets such as India with strong sports fan bases.
• Sportradar organized its inaugural Elite Prep Basketball Tournament, the “Sportradar Showdown,” held in Las Vegas in July. The tournament brought together exceptional amateur basketball teams under the Under Amour Association, Adidas 3SSB, and NBA Academy, and showcased Sportradar’s Synergy technology, capturing extensive data throughout the tournament and offering valuable insights for the use of college coaches and NBA talent scouts.
• The Company won multiple awards in the second quarter. Sportradar was named `Acquisition & Retention Partner of the Year’ by EGR North America, won the `Live Betting & Gaming Product Award’ and the `Sports Data Product Award’ from SBC North America, received the `Live Streaming Supplier Award’ at the EGR B2B Awards and, ORAKO Sportsbook solution was selected as `Best Sports Betting Technology of the Year’ at the 2023 Sports Technology Awards.

Segment Information

RoW Betting

• Segment revenue in the second quarter of 2023 increased by 20% to €114.1 million compared with the second quarter of 2022. This growth was driven primarily by increased sales of the Company’s higher value-add offerings including MBS, which increased 25% to €41.1 million, as well as Live Odd and Live Data products which grew 19% year over year.
• Segment Adjusted EBITDA1 in the second quarter of 2023 increased by 18% to €51.0 million compared with the second quarter of 2022. Segment Adjusted EBITDA margin1 remained at 45% year over year.

RoW Audiovisual (AV)

• Segment revenue in the second quarter of 2023 increased by 25% to €49.6 million compared with the second quarter of 2022. Revenue growth was driven by the new CONMEBOL deal and growth in sales to new and existing customers.
• Segment Adjusted EBITDA1 in the second quarter of 2023 increased 26% to €16.4 million compared with the second quarter of 2022. Segment Adjusted EBITDA margin1 remained at 33% year over year.

United States

• Segment revenue in the second quarter of 2023 increased by 31% to €38.0 million compared with the second quarter of 2022. Results were primarily driven by growth of 105% collectively in betting and gaming, and audiovisual products.
• Segment Adjusted EBITDA1 in the second quarter of 2023 was €5.4 million compared with a loss of (€5.5) million in the second quarter of 2022, indicating the strong improvement in operational leverage in the U.S. business model despite continuous investment. Segment Adjusted EBITDA margin1 improved to 14% from (19%), compared with the second quarter of 2022.

The tables below show the information related to each reportable segment for the three and six month periods ended June 30, 2022 and 2023.