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Sportradar Reports Strong Growth in Second Quarter 2022 and Increases Its Revenue Outlook for Fiscal 2022 Projecting Revenue Growth of 24% to 27%

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SPORTRADAR LAUNCHES ATHLETE WELLBEING VIDEO TO HELP PARTNERS EDUCATE THEIR ATHLETES ON THE POTENTIAL IMPACT OF SPORTS BETTING
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Sportradar Group AG, the leading global technology company 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 second quarter ended June 30, 2022.

Second Quarter 2022 Highlights

  • Revenue in the second quarter of 2022 increased 23% to €177.2 million ($186.0 million)1 compared with the second quarter of 2021, driven by strong growth across all business segments. In particular, U.S. segment revenue grew by 66% to €29.1 million ($30.5 million) compared with the second quarter of 2021.
  • Adjusted EBITDA2 in the second quarter of 2022 decreased 13% to €27.6 million ($28.9 million)1 compared with the second quarter of 2021 primarily due to costs associated with additional organic and inorganic headcount growth and new and renewed sport rights contracts and the impact of the Russia/Ukraine conflict.
  • Adjusted EBITDA margin2 was 16% in the second quarter of 2022, compared with 22% over the prior year period.
  • Adjusted Free Cash Flow2 in the second quarter of 2022 increased to €35.7 million, compared to negative Adjusted Free Cash Flow of €2.3 million for the prior year period. The resulting Free Cash Flow Conversion2 was 129% in the quarter.
  • Net Retention Rate2, based on the last twelve months, was strong at 115% at the end of the second quarter of 2022 highlighting the continued success of the Company’s cross-sell and upsell strategy across its global customer base. For second quarter 2021, the Net Retention Rate was 120%.
  • Cash and cash equivalents totaled €715.6 million as of June 30, 2022. Total liquidity available for use on June 30, 2022, including undrawn credit facilities, was €825.6 million.
  • In July 2022, Sportradar prepaid €200.0 million principal amount of its €420.0 million senior secured term loan Facility B. Significant cash flow generation has allowed the Company to reduce its debt while maintaining flexibility for acquisitions and additional investment in technology and products.
  • The Company upgraded its previously provided annual outlook for full-year 2022 for revenue and maintained its outlook for Adjusted EBITDA2. Please see the “Annual Financial Outlook” section of this press release for further details.
Key Financial Measures Q2 Q2 Change
In millions, in Euros 2022 2021 %
Revenue 177.2 143.6 23%
Adjusted EBITDA2 27.6 31.6 (13%)
Adjusted EBITDA margin2 16% 22%
Adjusted Free Cash Flow2 35.7 (2.3)
Free Cash Flow Conversion2 129% (7)%

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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 on June 30, 2022, which was €1.00 to $1.05.
2 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: “As the world’s leading provider of technology solutions to the sports betting industry, our Q2 revenue exceeded our expectations for the quarter, growing 23% year-over-year. Confident about the momentum we have built in our business, we are raising our revenue guidance for the year. Given our strong cash flow generation and demonstrated good stewards of our capital, we have also chosen to pay down about half of our outstanding debt. We remain as confident as ever in the leverage and scalability of our business, and our ability to deliver results in the face of global challenges and economic conditions.”

“Separately, our Chief Financial Officer, Alex Gersh, has decided that he will be leaving the company to accept another position in the United States where he will move with his family. I appreciate Alex’s many contributions to Sportradar and invite you to join me in wishing him well as he embarks on his next chapter. We have launched a search for a new CFO, and have named Ulrich Harmuth as interim CFO. Ulrich, who has been with the company since 2013, has served as Chief Strategy Officer since 2020 and has been a member of my management team overseeing corporate development activities, including M&A, strategic partnerships, and ventures. I am confident in Ulrich’s leadership to support Sportradar’s growth and the continued execution of our financial priorities.”

Segment Information

RoW Betting

  • Segment revenue in the second quarter of 2022 increased by 21% to €95.5 million compared with the second quarter of 2021. This growth was driven primarily by increased sales of our higher value-add offerings including Managed Betting Services (MBS) which increased 65% to €32.9 million and Live Odds Services, which increased 9% to €28.5 million. MBS growth was attributable to record turnover3 and Live Odds Services grew as a result of upselling content to existing customers. Additionally, increased content sales from last year’s Synergy Sports acquisition contributed to the growth in revenue.
  • Segment Adjusted EBITDA2 in the second quarter of 2022 decreased by 8% to €43.3 million compared with the second quarter of 2021. Segment Adjusted EBITDA margin2 decreased to 45% from 59% in the second quarter of 2021 driven by the impact of the Russia/Ukraine conflict, acquisition of new sport rights as well as temporary savings in sport rights and scouting costs in the prior year due to the COVID-19 pandemic.

RoW Audiovisual (AV)

  • Segment revenue in the second quarter of 2022 increased by 9% to €39.7 million compared with the second quarter of 2021. Growth was driven by new customers and traction with our Synergy Sports acquisition, offset by the impact of the Russia/Ukraine conflict.
  • Segment Adjusted EBITDA2 in the second quarter of 2022 increased 22% to €13.1 million compared with the second quarter of 2021. Segment Adjusted EBITDA margin2 increased to 33% from 29% compared with the second quarter of 2021 primarily due to lower sports rights costs.

United States

  • Segment revenue in the second quarter of 2022 increased by 66% to €29.1 million compared with the second quarter of 2021. This growth was driven by increased sales of U.S. Betting services primarily as a result of new states legalizing betting. We also experienced growth from increased sales to media companies and a positive impact from the acquisition of Synergy Sports.
  • Segment Adjusted EBITDA2 in the second quarter of 2022 was (€5.5) million compared with the second quarter of 2021 of (€4.6) million, primarily due to increased investment in the Company’s league and team solutions focused business. Segment Adjusted EBITDA margin2 improved to (19%) from (27%) compared with the second quarter of 2021 reflecting an improvement in the U.S. segment operating leverage.

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

Costs and Expenses

  • Purchased services and licenses in the second quarter of 2022 increased by €10.6 million to €43.2 million compared with the second quarter of 2021, primarily resulting from increased costs of content creation and processing.
  • Personnel expenses in the second quarter of 2022 increased by €17.6 million to €64.4 million compared with the second quarter of 2021 primarily resulting from additional organic and inorganic hires in the Company’s product and technology organizations. Employee headcount increased by 789 (of which 354 were inorganic) to 3,520 full-time employees at the end of the second quarter of 2022 compared with the second quarter of 2021.
  • Other Operating expenses in the second quarter of 2022 remained substantially unchanged at €21.2 million.
  • Total Sport rights costs in the second quarter of 2022 increased by €13.8 million to €48.7 million compared with the second quarter of 2021, primarily a result of new acquired rights in 2022 for the NHL, UEFA, ATP and a normalized schedule in many sports, including the NBA, as COVID-19 pandemic restrictions eased.

Recent Business Highlights

  • In July 2022, Sportradar repaid €200 million principal amount of its €420 million senior secured term loan Facility B. Continued revenue growth and our strong liquidity position enabled the Company to prepay a portion of the outstanding term loan and the Company has confidence that future cash flow generation will allow it to invest in the business and take advantage of market opportunities as they arise.
  • Sportradar partners with Turkish Basketball Federation on comprehensive rights deal. Encompassing the first-tier Turkish Basketball Super League (BLS), the second-tier Turkish Basketball First League (TBL) and all cup competitions, Sportradar will have (i) international rights to all BSL and TBL games starting with the 2023 season and (ii) domestic rights beginning in the 2024-2025 season. The partnership includes a comprehensive set of Sportradar solutions including Universal Fraud Detection Systems, Synergy Automated Camera Systems, and AI video capture technology in 27 venues in Turkey.
  • Sportradar launches Athlete Wellbeing. This global program was developed for leagues and federations, teams, and collegiate governing bodies to help support athletes’ and reduce the potential impact of sports betting on their mental health. This program will offer a comprehensive curriculum including on-demand virtual sessions, pre-recorded webinars and in-person workshops.
  • Sportradar bolster’s cricket offering with launch of world’s first virtual cricket in-play solution. Modeled on the popular T20 cricket format, Sportradar brings hyper-real 3D animation with over 400 million unique game situations. With over 2.5 billion cricket fans worldwide, our solution offers over 3.8 billion unique video seconds featuring the top eight teams from India’s leading T20 competition.
  • Sportradar to deepen fan engagement for groupe FDJ with launch of automated near-live short-form video content. Our company is providing ParionsSport en ligne, the French operator FDJ’s online sports betting activity, with an artificial intelligence driven, near-live premium sports video content offering to create deeper engagement with the sports betting service’s customer base of sports fans.

Annual Financial Outlook

Sportradar is upgrading its revenue outlook and reiterating its Adjusted EBITDA outlook for fiscal 2022 as follows:

  • Sportradar is upgrading its revenue outlook for fiscal 2022 from its previous range of €665.0 million to €700.0 million ($698.3 million to $735.0 million) 1 to a new range of €695.0 million to €715.0 million ($729.8 million to $750.8 million), representing prospective growth of 24% to 27% over fiscal 2021.
  • Adjusted EBITDA2, impacted by the Russia/Ukraine conflict, is expected to remain in the range of €123.0 million to €133.0 million ($129.2 million to $139.7 million)1, representing growth of 21% to 30% over fiscal 2021.
  • Adjusted EBITDA margin2 is expected to be in the range of 17% to 19%.

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Symplify integrates Open AI into its Engagement Ecosystem

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Symplify, the Stockholm-based market leader in CRM and AI cloud solutions, has integrated Open AI into its Engagement Ecosystem to optimise client content creation.

Seamlessly utilising Open AI within Symplify’s platform will enable existing partners to create custom auto-generated content and imagery across all key marketing channels. The goal is to reduce content production times by up to 60% by providing a faster and more efficient solution for creating high-quality content.

A consistent issue facing clients is acting on the abundance of campaign and journey ideas, as the last stage of production can often be time-consuming. The Open AI integration allows users to easily generate text and images with a simple command within the Symplify Editor, while the copy can be refined and customised to suit specific needs. The resulting high-resolution images are entirely bespoke.

With the integration of Open AI, Symplify users can streamline their content production process, allowing them to focus on other critical aspects of their business.

Symplify’s CEO Robert Kimber said: “Symplify’s success is underpinned by our belief in futureproofing our partners’ businesses and by integrating Open AI into our Engagement Ecosystem we’re strengthening that commitment. By optimising the content development we’re helping grow our customers’ CRM strategies at scale, while offering multi communication channel coverage.”

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Team Top-G crowned champions of NESC 2023; become first ever Indian female CS:GO team to qualify for World Esports Championships

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Scripting history, team Top-G emerged as champions of the inaugural all-female CS:GO qualifiers with a stunning 2-1 victory against team Purr-ple at the ongoing National Esports Championships (NESC) 2023 organized by the Esports Federation of India (ESFI). Following this monumental result, Top-G has become the first Indian female CS:GO team to qualify for the global finals of the World Esports Championships (WEC).

With ace CS:GO athletes such as captain Swayambika Sachar (Sway), Shagufta Iqbal (xyaa), Nidhi Salekar (Stormyyy), Dilraj Kaur Matharu (COCO), Aastha Nangia (CrackShot) and Priyanka Choudhary (ALEXAA) as Substitute in their squad, Top-G proved their mettle against team Purr-ple in the closely-contested finals.

Expressing her feelings on the stellar victory, the team captain of Top-G, Swayambika ‘Sway’ Sachar said, “Winning the finals was an unreal feeling for all of us. We felt so many emotions before, after, and most importantly during the match and the adrenaline rush was on another level. Triumphing in this tournament and representing India on an international stage is a dream come true for all of us and we aim to prove on the world stage why we deserve this spot. We are grateful to ESFI for providing us with such an amazing opportunity and we truly appreciate the efforts put in by them to uplift women in Esports.”

Top-G dominated the first map by 16 -10 before Purr-ple made a stunning comeback to win the second map 16-14. While both teams were going toe-to-toe in the enthralling finals, Top-G utilized their effective teamwork and proficient attacking tactics to edge out their opponents and take the last map by 19-15 in overtime.

 “It gives us immense joy to see a female team representing India at the World Esports Championships for the first time in history. The electrifying finals were a testament to the ability that our country’s female athletes possess and why ESFI has constantly been taking significant efforts to provide them with opportunities to display their talent and high-quality gameplay. We would like to congratulate Top-G on their remarkable accomplishment and look forward to them winning at the regional & global finals in Romania,” said Vinod Tiwari, President of the Esports Federation of India.

The ESFI will now be organizing friendlies against distinguished CS:GO teams from other countries for team Top-G before their participation at the WEC 2023 which is scheduled to take place in Iasi, Romania.

With a whopping prize pool of $500,000 (INR 4.12 crore) and at least 130 countries participating, the 15th WEC is set to be the largest edition of the tournament to date. The global finals of the prestigious tournament will take place from August 24 – September 4, 2023.

One of the country’s top sports & Esports communication agencies, Artsmith-Concepts & Visions, will continue its support to the Esports Federation of India as their official communication partner.

The ongoing NESC is witnessing the participation of 275 athletes across four different titles – CS:GO, DOTA 2, Tekken7, and eFootball 2023 and its exciting action is being streamed live on ESFI’s Youtube, Facebook, and Glance Gaming channels.

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The Player Hunt, one of the most popular reality TV shows in India, is proud to announce that Bollywood actor Siddhanth Kapoor, an expert in poker and highly focused ill be joining The Payer Hunt team for the Mumbai city round of the show’s third season on 23 March 2023 to shortlist poker contestants for The Player Hunt S3

“I am thrilled to be a part of The Player Hunt S3 and join the team for the Mumbai city round,” said Siddhanth Kapoor. “As someone who has spent a lot of time playing and studying poker, I am excited to share my knowledge and experience with the contestants and help them improve their game. I am also looking forward to the competition and seeing how the players perform under pressure.”

Siddhanth Kapoor is a seasoned professional who brings a wealth of knowledge and experience to the show. His expertise in poker is unmatched, and he has a clear vision of what it takes to succeed in the game. Siddhanth is not one to beat around the bush and values honesty and directness above all else. His feedback may come across as harsh to some contestants, but it is always given with the intention of helping them improve their game and increase their chances of success on the show.

During the city round, Siddhanth will be playing a crucial role in guiding and mentoring the contestants. Those who are willing to listen to his insights and take his criticism positively will have a great opportunity to learn from his expertise. However, it is worth noting that Siddhanth’s approach may not be for everyone, and contestants who prefer a more gentle approach to feedback may need to adapt to his direct and unfiltered approach.

The Player Hunt S3 promises to be an exciting and highly competitive season, and Siddhanth Kapoor’s presence on the show is sure to add an extra layer of intensity and excitement. We look forward to seeing him in action during the Mumbai city round.

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