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Sportradar Announces Strong Third Quarter 2021 Financial Results

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SPORTRADAR LAUNCHES FIRST OF ITS KIND ‘VIRTUAL STADIUM’ SOLUTION AHEAD OF GLOBAL SOCCER TOURNAMENT
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Sportradar Group AG , a leading global technology platform enabling next generation engagement in sports, and the number one provider of business-to-business solutions to the global sports betting industry, today announced financial results for its third quarter ended September 30, 2021.

Third Quarter 2021 Highlights

  • Revenue in the third quarter of 2021 increased 30% compared to the third quarter of 2020 to €136.8 million ($158.7 million)1, driven by robust growth across all geographies and business segments
  • Continued strong performance in the U.S. market with U.S. revenue in the third quarter of 2021 increasing by 119% compared to the third quarter of 2020. For the nine months ended September 30, 2021 the U.S. revenue reached €48.5 million ($56.3 million)1
  • Adjusted EBITDA* in the third quarter of 2021 was up 21% compared to the third quarter of 2020 to €20.9 million ($24.2 million)1
  • Strong Dollar-Based Net Retention Rate* of 128% at the end of third quarter of 2021, underscoring the continued success of our cross-sell and upsell strategy
  • Successfully extended our partnership through 2028 with FanDuel Group, a leader in the U.S. sports betting market, covering pre-match betting services, live betting services, and betting entertainment tools
  • Completed successful listing on Nasdaq, raising €546 million of primary net proceeds to fund continued growth in the business, providing the Company with €878 million to continue to invest in global growth
  • For the full-year 2021, we expect revenue to be in the range of €553 to €555 ($641 to $644)1 million and Adjusted EBITDA* in the range of €99.5 to 101.5 ($115.4 to $117.7)1 million.

 

Q3
Q3
Change
2021
2020
%
Revenue €136.8 €105.3 +30%
Adjusted EBITDA* €20.9 €17.3 +21%
Adjusted EBITDA margin* 15% 16% -7%
Dollar-Based Net Retention Rate* 128% 114% +12%
Adjusted Free Cash Flow* €32.9 €13.5 +144%
Cash Flow Conversion* 158% 78% +102%

_____________________
1 For the convenience of the reader, we have translated Euros amounts in the tables below at the noon buying rate of the Federal Reserve Bank of New York on September 30, 2021, which was €1.00 to $1.16.
* 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.

Carsten Koerl, Chief Executive Officer of Sportradar said: “Our strong results demonstrate the value we provide to our partners and customers around the world. We are the largest provider of sports intelligence in the world and the only profitable global sports technology platform of scale. Critically, we believe we are also the most innovative in developing technology solutions that enable our league customers, media and betting partners to use our ever-increasing data to attract and engage sports fans.”

Koerl continued, “We plan to continue to make significant investments, particularly in the U.S. The U.S. represents the primary area of focus to execute on our strategic growth plans, as the U.S. region is currently only 7 percent of our group revenues, representing a significant potential business opportunity as more states legalize betting and the market expands from $1 billion in 2019 to an estimated $23 billion in the next 10 years. Our recent Nasdaq listing in the U.S. was a tremendous milestone for our team, and we look forward to building on our success in a multitude of areas in the years ahead.”

Financial Highlights for the Three Months Ended September 30, 2021

  • Revenue in the third quarter of 2021 increased by 30% compared to the third quarter of 2020 to €136.8 million
  • Adjusted EBITDA* in the third quarter of 2021 increased by 21% compared to the third quarter of 2020 to €20.9 million
  • Adjusted EBITDA margin* remains strong at 15% in the third quarter of 2021, a slight decrease compared to the third quarter 2020 due to additional IPO costs of approximately €5.7 million which were incurred in the third quarter of 2021. Eliminating the impact of IPO costs would result in an Adjusted EBITDA margin of 20%, illustrating our continuous ability to achieve operating leverage
  • Dollar-Based Net Retention Rate* increased from 114% to 128% for the comparable twelve month period ending at September 30, 2020 and 2021 demonstrating continued execution of our upsell and cross-sell strategy and underscoring the quality of the products and services we provide our customers
  • Adjusted Free Cash Flow* in the third quarter of 2021 increased by 144% to €32.9 million which resulted in a Group Cashflow conversion of 158%
  • Cash totaled €768.4 million as of September 30, 2021. Total liquidity available for use at September 30, 2021, including undrawn credit facilities was €878.4 million
  • Total Debt at September 30, 2021 was €436.7 million resulting in a net cash position of €331.7 million

Segment Information

RoW Betting

  • Segment revenue in the third quarter of 2021 increased by 24% compared to the third quarter of 2020 to €78.6 million. This growth was driven primarily by uptake in our higher value-add offerings including Managed Betting Services and Live Odds Services, which increased by 63% and 20% respectively, as a result of new customers wins as well as increased turnover2 and volume.
  • Segment Adjusted EBITDA* in the third quarter of 2021 increased by 36% compared to the third quarter of 2020 to €44.7 million. The Segment Adjusted EBITDA margin* improved from 52% to 57% in the third quarter of 2021 driven by growth in higher margin products.

_____________________
2 Turnover is the total amount of stakes placed and accepted in betting.

RoW AV

  • Segment revenue increased in the third quarter of 2021 by 13% compared to the third quarter of 2020 to €29.0 million.  This growth was impacted by COVID related schedule changes in 2020, when more matches than usual were played in Q3 2020.  Adjusting for schedule changes Q3 2021 growth was approximately 30%, driven by volume growth as we were able to sell more matches (such as Soccer and Baseball) as well as growth from additional, new content (such as Copa America, Horse Racing and eSports) being sold to existing and new customers.
  • Segment Adjusted EBITDA* in the third quarter of 2021 increased by 220% compared to the third quarter of 2020 to €9.6 million. The Segment Adjusted EBITDA margin* improved from 12% to 33% in the third quarter of 2021 driven by lower cost of some content.

United States

  • Segment revenue in the third quarter of 2021 increased by 119% compared to the third quarter of 2020 to €19.6 million. This result was driven by growth in our US Betting services and increased revenue from our customers as the underlying market and turnover grew. We also experienced strong adoption of our ad:s product, growth in US Media and a positive impact from the acquisition of Synergy Sports in the second quarter of 2021.
  • Segment Adjusted EBITDA* in the third quarter of 2021 increased by 24% compared to the third quarter of 2020 to -€(6.6) million. The Segment Adjusted EBITDA margin* improved from (-60%) to (-34%) in the third quarter of 2021 which reflects the scalability of this business and clear path to profitability while continuing to invest in the US market.

Costs and Expenses

  • Personnel expenses in the third quarter of 2021 increased by €20.0 million compared to the third quarter of 2020 to €51.3 million resulting from additional hires in new business lines (2.849 FTE in the third quarter of 2021 vs 2.235 FTE in the third quarter of 2020), stock-based compensation, and reversal of temporary COVID 19 cost savings in the third quarter of 2021 compared to the third quarter of 2020.
  • Other Operating expenses in the third quarter of 2021 increased by €15.7 million compared to the third quarter of 2020 to €25.2 million mainly driven by incurred costs for IPO, compliance costs relating to operating as a publicly listed company in the US and M&A costs.
  • Total Sport rights costs in the third quarter of 2021 decreased by €9.0 million compared to the third quarter of 2020 to €28.7 million resulting from fewer major sporting events in the third quarter of 2021 compared to the third quarter of 2020.
  • Adjusted EBITDA* in the third quarter of 2021 was negatively impacted by IPO costs of €5.7 million. Eliminating this impact would result in an Adjusted EBITDA* of €26.6 million.

Recent Business Highlights

  • Issued and sold 19 million shares in connection with the closing of our IPO on Nasdaq raising €546 million of primary net proceeds
  • Signed integrity partnerships with leading sports leagues and federations such as cricket’s Tamil Nadu Premier League (TNPL), Badminton Europe and the Austrian Tennis Association
  • Secured a multi-year exclusive official data and media rights deal with Ligue Nationale de Basket (LNB), France’s top basketball league
  • Implemented full Computer Vision models for Grand Slam tennis events including Wimbledon and US open
  • Combined newly developed AI tools with our Managed Trading Services, Sportradar’s holistic trading service for sportsbook operators, to more accurately detect potential betting related match-fixing
  • Announced partnership extension with US market leader FanDuel Group through 2028
  • Announced a five-year deal with US betting and iGaming operator, Bally’s Interactive, to help support and grow sportsbook operations in the US
  • Celebrated three wins at the EGR B2B Awards in the Best Customer Service and Live Streaming Supplier categories, as well as the recently acquired Fresh Eight being shortlisted for Best Marketing and PR Supplier

Financial Outlook

For the full-year 2021, the Company currently expects:

  • Revenue in the range of €553 million to €555 million, representing growth of 36.6% to 37.1% for fiscal 2021
  • Adjusted EBITDA* in the range of €99.5 million to €101.5 million, representing growth of 29.4% to 32.0% for fiscal 2021

Conference Call and Webcast Information

Sportradar will host a conference call to discuss the third quarter 2021 financial results on November 17, 2021 at 8:00 a.m. Eastern Time (“ET”). The conference call can be accessed live over the phone by dialing 1-877-423-9813, or for international callers 1-201-689-8573. A replay will be available from 11:00 a.m. ET on November 17, 2021 through November 24, 2021, by dialing 1-844-512-2921, or for international callers 1-412-317-6671. The replay passcode will be 13724560.

Asia

Continent 8 Technologies continues global expansion with two key hires in Asia

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Continent 8 Technologies continues global expansion with two key hires in Asia
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Lalaine P. Vidal joins award-winning infrastructure provider as Business Development Manager and Christopher Caturay as Technical Solutions Architect

Continent 8, the award-winning global managed hosting, connectivity and security provider, continues to build out its presence in Asia with two key hires.

Lalaine P. Vidal joins as Business Development Manager and Christopher Caturay as Technical Solutions Architect. Both will be based out of the Philippines and will be responsible for supporting the company’s growing customer base across the region.

Vidal has more than a decade of experience in sales and marketing across a range of sectors including banking, BPO, real estate, telco and IT cyber security. Caturay is a cyber security professional with experience in the end-to-end process of deploying solutions and applying best practices for various businesses and in a range of sectors.

The hires form part of a wider push in Asia, where Continent 8 already offers infrastructure, connectivity and security solutions to a range of customers in iGaming and beyond.

The company’s cyber security offering has seen exceptional growth in recent years, keeping up with the evolving cyber security landscape, and with cyber-attacks at an all-time high in Asia, Continent 8 can defend a customers’ infrastructure against the growing number of threats.

Lalaine P. Vidal, Business Development Manager at Continent 8 Technologies, said: “The opportunity to join Continent 8 was one I simply couldn’t turn down. It is the leading infrastructure provider in the industry, and I am looking forward to using my experience in sales and marketing to drive the business forward and further establish its presence and customer base across Asia.”

Christopher Caturay, Technical Solutions Architect at Continent 8 Technologies, said: “Asia presents unique challenges when it comes to infrastructure and cyber security. I’m excited to be working for a business that has a comprehensive and unique solution for businesses targeting the Asian market.”

Peter Williams, Managing Director – Asia Pacific at Continent 8 Technologies, added: “Lalaine and Christopher are great talents and are a brilliant addition to the Continent 8 team in Asia. This is an important market for us and one where we have ambitious growth plans that we are actively deploying.

“Lalaine will play a vital role in introducing more businesses to Continent 8 and the award-winning solutions that we provide, while Christopher will ensure that customers are deploying the right products and services for their organisation. This localised approach, along with having feet on the ground, is what makes Continent 8 the go-to infrastructure and security provider for companies targeting Asia and other markets around the world.”

Via network points of presence in Hong Kong, Japan (Tokyo), Philippines (Manila), Singapore and Taiwan (Taipei), Continent 8 connects Asia to the rest of the world over a high-capacity, fully redundant private network comprising 90+ locations.

Meet the Continent 8 team at ASEAN Gaming Summit, 21-23 March 2023 at the Manila Marriott Hotel.

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PRAGMATIC PLAY SECURES LATEST DEAL IN SWITZERLAND WITH SWISS CASINOS

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PRAGMATIC PLAY SECURES LATEST DEAL IN SWITZERLAND WITH SWISS CASINOS
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Pragmatic Play, a leading content provider to the iGaming industry, has partnered with Swiss Casinos, one of the biggest operators in Switzerland, as it further expands its foothold in the regulated market.

The supplier’s entire slot portfolio is now live with Swiss Casinos, giving players access to more than 300 premium games. Those include recent titles The Knight King™ and Cowboy Coins™, as well as multi-award-winning player favourites Sugar Rush™ and Gates of Olympus™, which are proven performers in the Swiss market.

The deal follows similar agreements with major Swiss brands such as Pasino.ch (Groupe Partouche) and 7melons (Grand Casino Bern), as Pragmatic Play cements its position at the forefront of slot development and distribution in Switzerland and beyond.

Irina Cornides, Chief Operations Officer at Pragmatic Play, said: “We’re thrilled to welcome Swiss Casinos to our growing operator base after a fast and straightforward integration. Introducing Pragmatic Play’s premier games
to an even larger audience will further strengthen our position in Switzerland, where Swiss Casinos is a leading online gaming brand.

“We look forward to working with the team closely as we continue to build momentum in this key regulated market.”

Patrick Mastai, Director Online Casino at Swiss Casinos said: “Pragmatic Play remains one of the most consistent and unique slot providers in the market. It makes sense for us to partner with such a leading industry name on our latest venture which will undoubtedly positively impact our growth plans.

“We are excited to be able to bring such a vast array of new titles to our casinos and raise the stakes for our slot enthusiasts.”

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Yggdrasil creates a buzz with new launch Bugs Money

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Yggdrasil creates a buzz with new launch Bugs Money
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Yggdrasil and Reflex Gaming are transporting players to a world where bees make more than honey in the latest YG Masters creation, Bugs Money.

Hailed by Reflex Gaming as one of their most impactful slots to date, the game presents a wide array of vibrant bees, bugs, insects, flowers and fruits. The colourful art and design is coupled with thrilling features: Free Spins and Glow Wilds reel modifiers.

The Free Spins feature is triggered when three or more scatter symbols land and offers a choice of 3, 7, 10, or 15 Free Spins with a max win multiplier of 50x, 20x, 10x and 5x respectively. This allows players to directly set the volatility of the Free Spins feature and encourages user participation.

During the bonus, the majestic Queen Bee symbol can land on the centre reel, increasing the multiplier by 10x, up to a huge maximum of 500x.

When the Glow Wilds reel modifier bonus is triggered during the base game or Free Spins, the setting changes from day into night. While the reels are spinning, glow bugs land on random reel positions to add wild symbols. The Queen Bee can also make an appearance during the Glow Wilds bonus to deliver insane wins.

Part of the YG Masters portfolio, Bugs Money is Reflex Gaming’s 13th title as part of the initiative. The offering is powered by GATI, Yggdrasil’s state-of-the-art technology enabling partners to employ the preconfigured, regulation-ready, standardised development toolkit to consistently produce cutting-edge content followed by rapid distribution.

Stuart McCarthy, Head of Product & Programs at Yggdrasil, said: “Bugs Money is a playful, fun and vibrant title with straightforward yet engaging game play.

“Our partnership with Reflex Gaming has been fantastic to date with over 10 titles launched and we are excited to introduce yet another premium game to our wide operator network.”

Mat Ingram, CPO at Reflex Gaming, said: “This game has been a lot of fun to create. It’s another original concept from our studio.

“Despite the tranquil setting, it can quickly turn volatile. The Free Spins can dramatically increase the volatility by offering a super volatile mode. Allowing players to set their own volatility in the Free Spins feature offers greater engagement and ensures the title appeals to a wide demographic.”

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