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Sportradar Reports Strong Growth and Increased Profitability and Cash Flow

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Sportradar Reports Strong Growth and Increased Profitability and Cash Flow
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Sportradar Group AG, the leading global technology company enabling next generation engagement in sports and provider of business-to-business solutions to the global sports betting industry, today announced financial results for its third quarter ended September 30, 2022.

Third Quarter 2022 Highlights

  • Revenue in the third quarter of 2022 increased 31% to €178.8 million ($175.2 million)1 compared with the third quarter of 2021. 2022 year-to-date revenue grew 28% compared to the same nine months in 2021.
  • The RoW Betting segment, accounting for 56% of total revenue, grew 28% to €100.9 million ($98.9 million)1, driven by strong performance from our Managed Betting Services (MBS).
  • U.S. segment revenue grew 61% to €31.6 million ($31.0 million)1 compared to the third quarter of 2021, driven by strong market growth and positive adoption of in-play betting. The U.S. segment turned profitable for the first time since the Company’s initial public offering and generated a positive Adjusted EBITDA margin of 11%.
  • The Company’s Adjusted EBITDA2 in the third quarter of 2022 increased 75% to €36.5 million ($35.8 million)1 compared with the third quarter of 2021 as a result of strong revenue growth even with continuous investments in the Company’s growing business.
  • Adjusted EBITDA margin2 was 20% in the third quarter of 2022, an increase of 500 bps compared to the quarter for the prior year period and 400 bps higher compared to the second quarter of 2022.
  • Adjusted Free Cash Flow2 in the third quarter of 2022 increased to €33.9 million, compared to €32.9 million for the prior year period. The resulting Cash Flow Conversion2 was 93% in the quarter.
  • During the quarter, the Company prepaid €200.0 million of its outstanding debt. As of September 30, 2022, total debt was €236.9 million, and cash and cash equivalents totaled €512.5 million.
  • The Company has raised its guidance for revenue and the lower end of its Adjusted EBITDA2 range for the full year 2022.
Key Financial Measures Q3 Q3 Change
In millions, in Euros 2022 2021 %
Revenue 178.8 136.8 31%
Adjusted EBITDA2 36.5 20.9 75%
Adjusted EBITDA margin2 20% 15%
Adjusted Free Cash Flow2 33.9 32.9 3%
Cash Flow Conversion2 93% 158%

1 For the convenience of the reader, we have translated Euros amounts at the noon buying rate of the Federal Reserve Bank on September 30, 2022, which was €1.00 to $0.98.
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: “Our strong performance in the third quarter exceeded our expectations across all key financial metrics. We consistently managed to grow revenue, profitability and cash flows despite adverse market conditions during the first three quarters of 2022. The Company exceeds expectations quarter-in and quarter-out, and as a result of our operational performance – in particular the U.S. and the betting rest-of-world business – as well as our organizational streamlining, we are able to raise our full year guidance for revenue and increase the lower end of our Adjusted EBITDA range.”

“We are proud of the continuous success of our U.S. operations. We managed to generate a U.S. profit for the first time in the third quarter, displaying solid operational leverage in the business model. Underpinning this success is the extension of our long-term partnership with FanDuel. This partnership is a testimony for our strategy, to expand our relationships and become an embedded technology provider for our customers, based on strategic long-term deals with our league partners.”

Ulrich Harmuth, Interim Chief Financial Officer added: “The financial results in the third quarter demonstrated that Sportradar consistently has managed to grow almost three times faster than the underlying betting market and our growing scale has led to margin expansion – as indicated by the U.S. segment turning profitable in the third quarter. As a result of this strong momentum and based on what we can see today, our 2023 preliminary expectations are for revenue to grow in the mid-20’s percent while expanding Adjusted EBITDA margin above 2022 levels.

Segment Information

RoW Betting

  • Segment revenue in the third quarter of 2022 increased by 28% to €100.9 million compared with the third quarter of 2021. This growth was driven primarily by increased sales of our higher value-add offerings including Managed Betting Services (MBS), which increased 84% to €38.2 million, and Live Odds Services, which increased 12% to €27.1 million. MBS growth was attributable to a record annualized turnover3 of €19.0 billion and the success of our strategy to move existing customers to higher value add products.
  • Segment Adjusted EBITDA2 in the third quarter of 2022 increased 8% to €48.2 million compared with the third quarter of 2021. Segment Adjusted EBITDA margin2 decreased to 48% from 57% in the third quarter of 2021 driven by inorganic investments into AI capabilities for our MBS business, expanding our sport rights portfolio, as well as temporary cost savings in sport rights and scouting from the prior year due to the COVID-19 pandemic.

RoW Audiovisual (AV)

  • Segment revenue in the third quarter of 2022 increased by 14% to €33.1 million compared with the third quarter of 2021. Growth was driven by cross-selling audiovisual content to existing data customers and expanding AV portfolio sales with existing AV customers.
  • Segment Adjusted EBITDA2 in the third quarter of 2022 increased 32% to €12.6 million compared with the third quarter of 2021. Segment Adjusted EBITDA margin2 increased to 38% from 33% compared with the third quarter of 2021 as a result of AV revenue growth.

United States

  • Segment revenue in the third quarter of 2022 increased by 61% to €31.6 million compared with the third quarter of 2021. This growth was driven by a strong increase of U.S. betting services, driven by cross-selling non-data products to betting operators as well as benefiting from our customers’ growth as a result of a development in the underlying market and new states legalizing betting.
  • Segment Adjusted EBITDA2 in the third quarter of 2022 was €3.4 million compared with a loss of (€6.6) million in the third quarter of 2021, primarily driven by enhanced operating leverage as a result of the growing scale of our business despite continuous investments in the U.S. segment’s products and content portfolio. Segment Adjusted EBITDA margin2 improved to 11% from (34%) compared with the third quarter of 2021.

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 third quarter of 2022 increased by €18.1 million to €47.5 million compared with the third quarter of 2021, reflecting continuous investments in content creation and processing, higher event coverage and higher scouting costs. Of the total, approximately €13.7 million was expensed sports rights.
  • Personnel expenses in the third quarter of 2022 increased by €16.9 million to €68.3 million, an increase of 33% compared with the third quarter of 2021. Adjusted for inorganic hires, personnel cost grew 27% compared to the third quarter in 2021.
  • Other Operating expenses in the third quarter of 2022 decreased by €4.9 million to €20.3 million, as a result of our efforts to increase the effectiveness of our central services and due to one-time costs resulting from our initial public offering in September 2021.
  • Total sport rights costs in the third quarter of 2022 increased by €5.9 million to €34.6 million compared with the third quarter of 2021, primarily a result of costs associated with new acquired rights in 2022 for the ITF, UEFA and ATP.

Recent Business/Company Highlights

  • Sportradar and FanDuel sign long-term agreement for Official NBA data through the 2030-31 season. Providing FanDuel with a comprehensive portfolio of betting products and entertainment tools, Sportradar remains the preferred data and odds supplier to FanDuel through 2031. Using official NBA data, Sportradar and FanDuel will collaborate to enhance the sports betting experience with new offerings such as certain player tracking data to create props and same game parlays. Additionally, FanDuel will use Sportradar’s proprietary Live Channel Trading (LCT) product.
  • Sportradar reaffirms leadership position in cricket market with partnerships with Australian Premier Cricket competitions. Sportradar announced the renewal of partnership agreements with the top tier club cricket competitions in Tasmania, Queensland, and Western Australia. Currently, Sportradar is partners with every single state and territory cricket governing body in Australia. Extensions with these clubs enable Sportradar to remain the official streaming partner until mid-2025
  • Sportradar and International Golf Federation enter integrity partnership. Sportradar’s Integrity Services (SIS) unit signed a multi-year integrity partnership with the International Golf Federation (IGF). Under the terms of the initial two-year agreement, SIS will provide bet monitoring through its Universal Fraud Detection System (UFDS) for several IGF competitions. Sportradar Integrity Services have detected more than 7,300 suspicious matches during the past 17 years, with over 600 taking place in 2022 alone.
  • Tennis Data Innovations and Sportradar team up to expand official tennis data distribution. The partnership sees the launch of a “new secondary feed,” to enable the provision of betting-related services based on official ATP Tour and ATP Challenger Tour scores to a suite of global bookmakers. Of significance, the partnership sees the ATP change its data framework, allowing bookmakers to have uninterrupted access to official data, as scores to date have been delivered directly from the umpire’s chair.
  • Sportradar continues to evolve its organizational structure to set it up for continued success in achieving its strategic goals around growth, organizational effectiveness and efficiency. The Company is optimizing its organization by appointing global leaders for content creation, product development and commercial excellence – with the U.S. retaining a dedicated go-to-market approach. With this new structure, the Company will become faster in decision-making and execution, and will be more effective and efficient in serving global customers with a growing global product portfolio. The net effect will also be to significantly reduce the number of direct reports to the CEO.

Annual Financial Outlook 
Sportradar has updated its outlook for revenue and Adjusted EBITDA for fiscal 2022 as follows:

  • Sportradar has raised its revenue outlook for fiscal 2022 to a range of €718.0 million to €723.0 million ($703.6 million to $708.5 million)1, from its previous range of €695.0 million to €715.0 million representing prospective growth of 28% to 29% over fiscal 2021.
  • Outlook for Adjusted EBITDA2 is narrowed to a range of €124.0 million to €127.0 million ($121.5 million to $124.5 million)1 from the previous range of €123.0 million to €133.0 million, representing 22% to 24% growth versus last year.
  • Adjusted EBITDA margin2 is expected to be in the range of 17% to 18%.4

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Sportingtech Announces Partnership with Alea

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Sportingtech, the multi-award-winning provider of iGaming solutions, has announced a new partnership with Alea, a leading casino aggregator known for its extensive game portfolio and innovative approach to content delivery. This integration brings over 15,000 games to Sportingtech’s platform, allowing operators to provide players with an exceptional variety of gaming options, from slots to live casino and table games, all optimised for seamless gameplay.

Alea’s vast library includes some of the industry’s most engaging titles, designed to offer operators a competitive edge with a unique blend of popular games and exclusive features. With zero technical maintenance required, Alea’s content provides a hassle-free expansion solution that empowers Sportingtech’s operators to elevate their casino offerings without additional operational burdens.

Robert Nevill, Senior Commercial Manager at Sportingtech, said: “Partnering with Alea marks an exciting enhancement to our platform, giving our operator partners access to one of the largest and most dynamic game libraries in the market. Alea’s commitment to providing high-quality content without technical hurdles perfectly aligns with Sportingtech’s mission to deliver versatile solutions for our clients. This partnership represents a significant step forward as we continue to expand our game variety and enrich the player experience across global markets.”

Alea’s extensive content library, combined with its reputation for quality and innovation, will allow Sportingtech operators to attract and retain players with a broad range of entertainment options. Alea’s integration ensures that Sportingtech’s platform remains at the forefront of the iGaming industry, supporting operators with an optimised, ready-to-launch library that requires no ongoing technical support. This focus on seamless integration enables Sportingtech’s clients to remain competitive by continually refreshing their game portfolios in response to evolving player demands.

Jordi Sendra, CEO of Alea, said: “We are delighted to partner with Sportingtech, whose comprehensive platform and expansive market reach make them an ideal partner for delivering our content to new audiences. Alea’s extensive game selection, combined with our commitment to operator flexibility and player engagement, will undoubtedly enhance the gaming experience for Sportingtech’s operators. We look forward to seeing this partnership drive growth and provide operators with a unique edge in the competitive iGaming market.”

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Mascots in B2B? Gamzix Proves It Works with Gary the Goose

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Mascots in B2B? Gamzix Proves It Works with Gary the Goose
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Gary the Goose, the official mascot of Gamzix, has stepped beyond the digital realm and made a real-world appearance. Once a quirky, fictional character seen on LinkedIn, Gary transitioned into a fully realized mascot at SiGMA Europe in Malta. Although mascots are primarily linked to B2C marketing, Gamzix, a leading provider of full-cycle slot games, took an innovative step by introducing Gary into the B2B space. The outcome was the creation of a memorable and captivating character who has captured the hearts of many.

Why Choose a Mascot? The Importance of Gary the Goose in Gamzix’s Brand Strategy

In today’s competitive market, mascots are an important tool for creating a unique and relatable brand identity. Gamzix understands the value of these connections. Gary embodies the brand’s core values of creativity, approachability, and warmth, injecting a sense of personality into the typically formal B2B space. His playful character aligns perfectly with Gamzix’s brand, building stronger ties with casino partners and leaving a lasting impression in the iGaming industry.

Gary’s creation was a thoughtful and deliberate process, designed to reflect the essence of Gamzix. After considering several ideas, the team decided on a quirky, imperfect goose wearing pixelated black sunglasses—a symbol of his forward-thinking perspective and drive for a bright future.

Gary had already become a beloved presence at Gamzix, regularly appearing in LinkedIn posts and on branded merchandise at various events. Despite his popularity in the digital world, many people were eager to meet him in person. Responding to this demand, Gamzix decided to introduce Gary exclusively to its partners at SiGMA Europe in Malta.

Gary the Goose Makes His Live Debut at SiGMA Europe

At SiGMA Europe in Malta, Gary made his long-awaited debut as the central attraction at the Gamzix booth. He interacted with visitors, distributed Gamzix-branded Nike sneakers, posed for photos, and demonstrated the company’s commitment to creating engaging, memorable experiences.

Gary’s vibrant personality drew large crowds, boosting social media engagement and raising the brand’s profile. His presence also created new business opportunities and helped move discussions forward with both existing and potential partners.

 

 

 

 

 

 

 

 

 

 

The Influence of Mascots in Digital Marketing and Social Media

Mascots are a powerful tool for bringing a brand’s personality to life, especially in digital marketing. Gary’s image has been used in a variety of marketing campaigns, from game announcements to social media content. Whether dressed in a festival tailcoat with a glass of sparkling wine for good luck or appearing in other playful outfits, Gary enables Gamzix to connect with its audience in a fun and approachable manner. His endearing imperfections, such as his amusing potbelly, make him more relatable and human, fostering deeper engagement and expanding the brand’s social media reach.

A Long-Term Strategy for Building Brand Loyalty and Recognition

Mascots help enhance brand recognition both online and offline. Gamzix plans to continue using Gary the Goose to strengthen its brand identity and cultivate lasting relationships with its partners. His unique combination of playful charm and professionalism embodies the core of Gamzix, creating trust and loyalty through both digital campaigns and live events.

Olga Ashykhmina, Digital Marketing Lead at Gamzix, comments, “Research shows that mascots can increase brand recognition by up to 30%. With Gary, we’re changing the way B2B branding is approached, showing that creativity and a personal touch can turn professional partnerships into engaging and impactful experiences.”

Gary the Goose is more than just a mascot; he represents trust and recognition. His infectious personality and unique charm have made him a standout figure, with everyone wanting to interact with him. Through Gary, Gamzix continues to blend creativity and professionalism, creating meaningful connections that leave a lasting impact.

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OLYBET PARTNERS WITH WST

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OLYBET PARTNERS WITH WST
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OlyBet is excited to announce an agreement with World Snooker Tour (WST), the home of the world’s best snooker players and tournaments, and part of the Matchroom Sport group.

OlyBet will now be the Official European Betting Partner of WST, as well as the Official Partner of one of the tour’s premium events in The Masters, held in January next year at London’s famed Alexandra Palace, OlyBet will collaborate with WST to showcase the best of professional competition, passionate snooker fans and its world-class players.

“Partnering with WST will bring the excitement, history, and personality of world-class snooker closer to OlyBet’s communities. OlyBet is known for grand activations, up close access and delivering memorable moments through sports. The WST captivates its traditional base and inspires a new generation of fans with the world’s best professionals and personalities. This will be an exciting partnership”, said Corey Plummer Chairman and CEO of OlyBet Group.

The partnership also sees one of WST’s most charismatic and skilful competitors, Jack Lisowski, become OlyBet’s brand ambassador, and will see the former Rookie Of The Year be the face of the partnership on OlyBet’s channels as well as feature in several content projects in conjunction with the tour.

WST’s Chief Commercial Officer Peter Wright said: “It’s exciting to team up for the first time with OlyBet, an inventive brand which has some fantastic partnerships in sports including football and golf. We look forward to collaborating with the OlyBet team and their new ambassador Jack Lisowski, known for his flamboyant style which will fit perfectly with their content strategy.”

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