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SPORTRADAR REPORTS SECOND QUARTER 2024 FINANCIAL AND OPERATING RESULTS
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Sportradar Group AG (NASDAQ: SRAD) (“Sportradar” or the “Company”), a leading global sports technology company focused on creating immersive experiences for sports fans and bettors, today announced financial results for its second quarter ended June 30, 2024.
Carsten Koerl, Chief Executive Officer of Sportradar, said: “Our strong second quarter results, including another quarter of record revenues are a testament to the operating momentum we are generating across our business and the clear execution against our strategies to drive outperformance versus the market. We delivered robust growth across our high-value product portfolio and strong client uptake, while continuing to strengthen our business by driving efficiencies and significant cash flow. I am pleased to once again raise our full year guidance as we continue to build long-term shareholder value through strong topline growth, a focus on delivering additional operating leverage and increasing cash flow generation.”
Second Quarter 2024 Financial Highlights
- Revenue was €278.4 million, up 29% year-over-year demonstrating continued momentum in the business.
- Betting Technology & Solutions revenues were €229.1 million, up 30% year-over-year, and Sports Content, Technology & Services revenues were €49.3 million, up 22% year-over-year.
- Delivered strong revenue growth globally with Rest of World up 22% and the U.S. up 59%.
- The current quarter generated a loss of (€1.5 million) compared to a de minimis profit for the same quarter last year.
- Adjusted EBITDA[i] was €48.8 million, up 22% year-over-year.
- Net cash generated from operating activities since the beginning of the year was €152.6 million, up 17% year-over-year.
- The Company’s customer Net Retention Rate[ii] was 117%, demonstrating the strength in cross selling and upselling to clients, and increasing sequentially.
- As of June 30, 2024, the Company had total liquidity of €542.2 million as compared to €483.7 million as of June 30, 2023, benefitting from strong cash flow generation in the first half of 2024.
- During the quarter, the company repurchased approximately 588,000 shares, for a total amount of $6.2 million. As of August 9, 2024, the Company has repurchased approximately 748,000 shares with a total value of $8.0 million.
- The Company further raised its full-year 2024 outlook and now expects to deliver 22% year-over-year growth in revenue and Adjusted EBITDA.
Key Financial and Operating Metrics
|
Q2 | Q2 | Change | Change | ||||
in €’000 (unaudited) | 2024 | 2023 | € | % | ||||
Total Revenue | 278.4 | 216.4 | 62.0 | 29% | ||||
Profit (loss) for the period from continuing operations | (1.5) | 0.0 | (1.6) | n/a | ||||
Profit (loss) for the period from continuing operations as a percentage of revenue | (0.6%) | 0.0% | -57 bps | n/a | ||||
Adjusted EBITDA | 48.8 | 40.1 | 8.7 | 22% | ||||
Adjusted EBITDA Margin1 | 17.5% | 18.5% | -98 bps | n/a | ||||
Net Retention Rate | 117% | 120% | -360 bps | n/a | ||||
Supplemental Revenue Analysis | ||||||||
Revenue Grouping | ||||||||
Betting Technology & Solutions | 229.1 | 176.1 | 53.0 | 30% | ||||
Sports Content, Technology & Services | 49.3 | 40.3 | 9.0 | 22% | ||||
278.4 | 216.4 | 62.0 | 29% | |||||
Revenue Grouping as % of Total Revenue | ||||||||
Betting Technology & Solutions | 82% | 81% | 1% | |||||
Sports Content, Technology & Services | 18% | 19% | -1% | |||||
Geographic | ||||||||
Rest of World | 217.8 | 178.4 | 39.4 | 22% | ||||
United States | 60.6 | 38.0 | 22.6 | 59% | ||||
278.4 | 216.4 | 62.0 | 29% | |||||
Geographic as % of Total Revenue | ||||||||
Rest of World | 78% | 82% | ||||||
United States | 22% | 18% | ||||||
Recent Business Highlights
- Sportradar Managed Trading Services (MTS) customer pipeline had a strong first half of 2024. 46 new customers have signed up for MTS year-to-date, which will bring total customers to over 200 worldwide, expanding coverage in fast growing sports betting territories including Latin America & Africa.
- UEFA and Sportradar extend and expand partnership. The expanded agreement covers all UEFA Club and National team competitions, over 900 high-profile matches, a 33% increase from the previous relationship. The agreement also expands its existing, exclusive betting data rights and Integrity partnership to include non-exclusive right to distribute data to non-betting media.
- Sportradar launches audio and expands digital-out-of-home advertising channels to increase operators’ reach and brand awareness. Sportradar announced the launch of ad:s for audio and an enhanced digital-out-of-home offering, expanding the reach of the company’s leading marketing services to podcasts, streaming services, internet radio and over 600,000 digital outdoor screens across move than 100 countries.
- Sportradar launches industry-first social media video ads featuring live sports and betting data. Initially launched across Meta’s social media platforms, Sportradar’s proprietary technology creates and delivers tailored social media video advertisements, which update in real-time to reflect betting market movements, including live odds, as well as casino games and jackpot value, to aid customer retention and drive revenue.
Revenue
Total revenue for the current quarter was €278.4 million, up 29% year-over-year driven by growth across the portfolio, in particular Betting Technology & Solutions.
Betting Technology & Solutions
Betting Technology & Solutions revenues were €229.1 million, up 30% year-over-year primarily driven by:
- Streaming & Betting Engagement, up €26.2 million or 41% year-over-year, and Live Data and Odds up €18.6 million or 27% year-over-year, with both benefitting from existing and new customer uptake of our products and premium pricing, as well as from the strong U.S. market growth.
- Managed Betting Services, up €8.5 million or 21% year-over-year, primarily driven by strong growth in Managed Trading Services due to higher trading margins and increased betting activity from existing and new customers.
- As a percentage of total company revenues, Betting Technology & Solutions represented 82% of total company revenue in the current quarter as compared to 81% in the prior year quarter.
Sports Content, Technology & Solutions
Sports Content, Technology & Solutions revenues were €49.3 million, an increase of 22% year-over-year primarily driven by:
- Marketing and Media Services were €7.7 million, up 28% year-over-year, with strong growth in European and North America ad:s revenue as several sportsbooks launched marketing campaigns.
- Sports Performance was broadly flat year-over-year.
- As a percentage of total company revenues, Sports Content, Technology & Solutions represented 18% of total company revenue in the current quarter as compared to 19% in the prior year quarter.
Costs and Expenses
- Purchased services and licenses were €72.6 million, up €22.0 million or 44% year-over-year. Of the total purchased services and licenses, €28.9 million was expensed sport rights. Excluding expensed sport rights, purchased services were €43.7 million, up €10.5 million or 32% year-over-year driven primarily by the Company’s investments in its product portfolio.
- Personnel expenses were €89.1 million, up €4.7 million or 6% year-over-year and down approximately 700 bps as a percentage of revenue, as we continue to closely manage our resources and focus on delivering operating leverage.
- Other Operating expenses were €22.6 million, up €1.6 million or 8%, down approximately 160 basis points as a percentage of revenue, as we further leveraged our existing infrastructure.
- Total sport rights costs were €95.9 million, up €43.6 million or 83% year-over-year, driven by new rights, in particular our ATP and NBA partnership deals.
Share Repurchase Program
In March of this year the Board of Directors approved a $200 million share repurchase program and commenced purchases during the second quarter. As of August 9, 2024, the Company has repurchased approximately 748,000 shares under the plan for a total of $8.0 million.
Updated 2024 Annual Financial Outlook
Sportradar is further raising its fiscal 2024 outlook for revenue and Adjusted EBITDA as follows:
- Revenue of €1,070 million compared with prior outlook of €1,060 million, up 22% year-over-year and representing a 1-percentage point improvement in our full year growth rate outlook.
- Adjusted EBITDA of at least €204 million compared with prior outlook of €202 million, up 22% and representing a 1-percentage point improvement in our full year growth rate outlook.
- Adjusted EBITDA margin of approximately 19%.
Conference Call and Webcast Information
Sportradar will host a conference call to discuss the second quarter 2024 results today, August 13, 2024, at 8:30 a.m. Eastern Time. Those wishing to participate via webcast should access the earnings call through Sportradar’s Investor Relations website. An archived webcast with the accompanying slides will be available at the Company’s Investor Relations website for one year after the conclusion of the live event.
[i] Non-IFRS measure. See the sections captioned “Non-IFRS Financial Measures and Operating Metric” and “IFRS to Non-IFRS reconciliations” for more details.
[ii] Non-IFRS Operating Metric. See the section captioned “Non-IFRS Financial Measures and Operating Metric” for more details.
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The World Tote Association (WoTA) announces election of a new Board; welcomes new members for 2025-26
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10th September 2024 – At the WoTA General meeting, hosted at the recent Asian Racing Conference in Sapporo, Japan, Board members worked collaboratively to establish a dynamic agenda for the organization, focused on multiple key objectives:
- Creating stronger national and global betting pools, especially through commingling, to support the respective horseracing industries
- Expanding pari-mutuel pool betting through additional markets and sporting events content for the additional collective benefit of WoTA operators
- Addressing the challenges of illegal wagering
- Working collectively on diversity and inclusion to further growth within the pool betting sector
Furthermore, WoTA members have elected the new Board who will drive the Association’s activities for the coming two years.
Fundi Sithebe, CEO of 4Racing in South Africa, and Keith Johnson, President of 1/ST TECHNOLOGY group/AmTote have accepted nominations to co-chair the Association. Riko Luiking, General Manager of German Tote, has likewise accepted the role of Treasurer.
Sithebe and Johnson take over from Alex Frost, CEO of the UK Tote Group, and Hans Lord Skarploth, CEO of ATG in Sweden, who have successfully co-chaired the Association since October 2022. During their tenure as Co-Chairs, the board initiated further commingling between members and a new sport pool project.
On taking over as Co-Chairs, Fundi Sithebe and Keith Johnson said: “We are delighted to be taking over as Co-Chairs of the World Tote Association. Over the last five years WoTA has made significant progress in developing the relationship between members and increasing understanding of the role pool betting plays in supporting horseracing around the globe. We thank Alex and Hasse for their excellent stewardship, and the entire WoTA Board for their efforts, and we look forward to working with all stakeholders to further our collective ambitions for the good of horseracing and society as a whole.”
The new WoTA Board will focus on the stated key objectives to ensure WoTA progresses its overall aim to see the growth of pool betting and make an increased contribution to horseracing and has a positive relationship with customers, governments, regulators and society.
WoTA is also proud to welcome the Jockey Club of Turkey and Zeturf Group as full members of the Association.
Members of the WoTA Board for 2025-26:
- Keith Johnson – 1/ST TECHNOLOGY / AmTote (Co-Chair)
- Fundi Sithebe – 4Racing (Co-Chair)
- Alex Frost – UK Tote Group
- Hans Lord Skarplöth – ATG
- Paul Cross – Tabcorp
- Michael Fitzsimons – Hong Kong Jockey Club
- Driss Belghazi – Sorec
- Adrien Billon – Carrus Group
- Andreas Reimblad – Veikkaus
- Simon Leong – Singapore Pools
- Riko Luiking – German Tote (Treasurer)
- Andrew Archibald – United Tote
Biography of the WoTA Co-Chairs for 2025-26:
Fundi Sithebe, Chief Executive Officer of 4Racing
Fundi Sithebe was appointed as the first Chief Executive Officer (CEO) of 4Racing PTY on 1 June 2021. 4Racing is the largest of the three horseracing operators within South Africa, and the company is responsible for horseracing operations, totalisator betting and broadcast operations of horseracing. The business has the largest sports pool offering in South Africa, licensed by the provincial gambling boards. A large part of her responsibilities is to ensure a successful turnaround, stabilising and the growth and sustainability of the horse racing business whilst managing the day-to-day operations, transformation and modernisation of the various business units.
Fundi was previously the Chief Operating Officer (COO) of Airports Company South Africa (ACSA) responsible for daily operations on both aeronautic and non-aeronautic operations.
One of her biggest passions is the inclusivity and growth of female representation in the industries she serves in. She was previously a member of a few non-profit initiatives within the aviation industry (namely, Southern African Women in Aviation and Aerospace (SAWIA), Women in Aviation (W&A) as well as chairperson of Akani Aviation Leadership Initiative South Africa) that aimed to ensure a larger and a sustainable base of females in the aviation industry, and ensuring greater gender representation in the horseracing industry is an important objective for her.
Keith Johnson, President of 1/ST TECHNOLOGY group/AmTote
Keith joined the industry via AmTote in 1989 having just earned a BSBA degree from Auburn University. Embracing the racing & wagering industry that his family had decades of roots in, Keith progressed within AmTote from its operational ground up, gaining extensive industry knowledge and experience within multiple departmental positions including field operations management, hub operations management, regional operations management, sales, and executive leadership positions, ultimately being promoted to President of AmTote in 2016. In 2024, Keith was promoted to President of the broader 1/ST TECHNOLOGY group, which is inclusive of AmTote, PariMAX, Xpressbet, 1/ST BET, and BetMIX business units.
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Regulated Online Casinos using Military-Grade Technology to Outsmart Cyber Criminals
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With cybercrime running rampant and data breaches on the rise, trusted online casinos globally are arming themselves with the latest military-grade encryption technologies to outsmart even the most sophisticated cyber thugs.
Minimum Deposit Casinos (MDC) – a leading global casino resource portal – said data breaches were becoming more common and costly as resourceful criminals lurk everywhere on the internet. For the gambling industry, data encryption goes beyond protecting financial transactions: it’s about securing every interaction – from logins to game history. Every piece of player information is encrypted, making it virtually impossible for unauthorized parties to access.
“Regulated and reputable online casinos cannot afford to gamble on security. Player safety and protection is a non-negotiable. That’s why they are investing heavily in multi-layered next gen encryption – the same technology used by governments and global financial institutions – to become impenetrable to digital threats,” said Miranda Raaff, Head of iGaming Information at MDC.
“This level of high-tech security means that even in the event of a possible data breach, encrypted information remains unreadable and useless to cybercriminals. The integration of state-of-the-art firewalls, end-to-end encryption, and real-time monitoring systems means online casinos are safeguarding every transaction from deposits to withdrawals, as well as securing every player interaction in transit.”
The urgency of this move has never been more critical. With high-profile breaches like those at energy giant Halliburton, data broker company National Public Data (NPD), and auto giant Toyota – billions of individuals’ sensitive information could be exposed.
“The stakes have never been higher. The mission of regulated online casinos is to outsmart cyber hooligans at every turn and that’s why they are constantly adapting their defenses to combat new threats in the fast-changing cyber world. Player trust is the cornerstone of their success, so they are doing everything in their power to protect it,” concluded Raaff.
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Mindway Al and Burendo Forge Strategic Alliance to Enhance Safer Gambling Solutions
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Mindway Al, a leader in Al-driven gambling safety solutions, and Burendo, an award-winning technology consultancy specialising in betting and gaming transformation, are pleased to announce a strategic alliance. This partnership aims to leverage Burendo’s industry expertise and Mindway Al’s innovative technology to enhance safer gambling practices across the gaming industry.
As the betting and gaming landscape continues to evolve, driven by changing regulations and customer preferences, the need for proactive and adaptable solutions has never been greater. Mindway Al and Burendo are combining their strengths to address these challenges head-on. Burendo’s pragmatic approach to product delivery will enable the company to refer clients seeking advanced responsible gambling software directly to Mindway Al. Conversely, Mindway Al will recommend Burendo to gaming organisations looking for expert consultancy services to navigate the complexities of building and delivering high-quality gaming products.
Burendo brings a wealth of real-world experience in helping organisations achieve their product goals within the betting and gaming sector. Their Betting and Gaming Transformation service is specifically designed to guide organisations through the dynamic and highly regulated environment, ensuring that their products not only meet market demands but also comply with the latest responsible gambling regulations.
“Our alliance with Mindway Al represents a powerful partnership of technology and expertise. By combining their advanced detection software with our product development, data engineering and consultancy services, we’re providing clients with comprehensive solutions for building responsible and
successful gaming experiences.” said Glenn Crossley, Founder of Burendo.
Mindway Al is recognized for its innovative solutions in detecting and monitoring at-risk gambling behaviour. Their flagship products, GameScanner and Gamalyze, utilise Al and neuroscience to provide early detection and intervention, offering gambling operators the tools needed to enhance player protection effectively.
“At Mindway Al, our mission is to bring advanced technology to the forefront of responsible gambling. This partnership with Burendo allows us to extend our reach, helping more organisations incorporate our innovative solutions into their operations,” said Rasmus Kjaergaard at Mindway Al. “By working together, we can provide comprehensive solutions that address both the technological and operational aspects of safer gambling.”
The collaboration between Mindway Al and Burendo marks a significant step forward in the pursuit of safer gambling practices. Burendo’s hands-on consultancy and agile-focused approach, combined with Mindway Al’s state-of-the-art detection software, will provide gaming operators with the resources they need to deliver safer, compliant, and engaging gaming experiences.
Both companies are committed to fostering a customer-centric mindset, streamlining processes, and ensuring continuous improvement and adaptability in the gaming industry. Through this strategic alliance they aim to empower organisations to thrive in the ever-changing betting and gaming landscape, ultimately creating a safer environment for all players.
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