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SPORTRADAR REPORTS SECOND QUARTER 2024 FINANCIAL AND OPERATING RESULTS
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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BOS/The Swedish Trade Association for Online Gambling commissions Advisense to strengthen efforts against money laundering
A unique survey on the state of play in measures against money laundering and terrorist financing in the gambling industry
The Swedish Trade Association for Online Gambling, BOS, has commissioned the consulting firm Advisense to conduct a unique survey among its member companies this fall to strengthen their work against money laundering and terrorist financing.
The online gambling market in Europe is estimated to 100 billion euros and is rapidly growing due to increased internet usage, smartphones, and new platforms for gaming and betting. With this growth new risks emerge. Challenges are reflected in recent sanctions by supervisory authorities focusing on the need for risk assessment, enhanced customer due diligence, adequate controls and monitoring.
“The gambling market should be a place for joy, entertainment, and excitement—and the occasional big win. Criminal activities must be eradicated. Our tolerance for money laundering in the gaming industry is zero. Together with Advisense, we are now setting a spotlight on ourselves to identify how we can improve our work against money laundering,” says Gustaf Hoffstedt, Secretary General of BOS—The Swedish Trade Association for Online Gambling.
“The AML State of Play survey will be an important step to strengthen the ongoing efforts. Online gambling is a high-risk industry for money laundering and terrorist financing both internationally and in Sweden. Extensive measures have already been taken since the Swedish gambling industry was regulated in 2019. The ability to share collective expertise and exchange experiences from both the gaming and financial industries will be of great significance going forward,” says Christine Enström, Managing Director & Head of Financial Services at Advisense.
The results of the survey will be communicated by BOS later this autumn.
The Swedish Trade Association for Online Gambling—BOS—represents gaming companies and developers of online games targeting Swedish consumers. The association was founded in 2012 to represent the industry in Sweden and abroad.
Advisense is a market-leading expert firm in Europe specializing in governance, risk, and compliance, offering cutting-edge advisory services and tech solutions. Since 2008, Advisense has grown to 450 employees based in Bergen, Brussels, Copenhagen, Gothenburg, Frankfurt, Helsinki, Malmö, Oslo, Riga, Stockholm, and Vilnius.
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Week 37/2024 slot games releases
Here are this weeks latest slots releases compiled by European Gaming
Nolimit City shreds its way into the skate world with Skate Or Die. Chad a.k.a Plantface is determined to make it to the big leagues even if that means breaking some bones in the process! Venturing into new and unique themes is nothing new to Nolimit City who have done the same thing in the past, with releases such as Loner and Road Rage.
BGaming is driving players to unleash their inner monarch in a regal-themed classic slot Royal Fruits MultiLines. This title includes a contemporary take on nostalgic fruit symbols, a line choice option, as well as Best Win and Best Multiplier panels. With a luxurious red backdrop, upbeat soundtrack and top-of-the-line audiovisual effects, the classic Royal Fruits MultiLines injects an ounce of sparkle into the reels with the chance to collect flavoursome wins.
Having recently launched with innovative mobile-first casino platform, SuprNation, to supply its games in the UK market, Swintt is delighted to announce it has now teamed up with the brand’s parent company, DoubleU Games, to launch an all-new slot. Known as Ocean777, the game is now available via the SwinttPlatform to SuprNation’s players in the UK, with Sweden and Malta to follow, where they dive into a world of wins where collecting lucky sevens could result in them reeling in the catch of the day in the form of one of six local jackpots worth up to 10,000x their bet.
Play’n GO, known for its diverse and imaginative slot offerings, brings iGaming fans Buildin’ Bucks, a fairytale-themed slot that embodies the greatness of past titles, whilst making bold new strides into the future. Set in an elf-filled grassland, this 5×3 online slot invites players to join a team of industrious builders who are up against a mischievous Leprechaun determined to bring their construction empire crashing down.
Booming Games are back at it again, welcoming a brand new slot to their ever-expanding tribe: the ingenious Chief Hawk’s Spirit Walk. This Native American–themed addition to Booming’s casino collection is a classic 5×4 slot with 30 fixed paylines and a whole feast of features. Those features include the Spirit Walk re-spins, triggered when a Stacked Wild lands in full on the reels.
Get ready to conquer the realms and claim the treasure that’s rightfully yours in Sword King from Elysium Studios – Driven By Swintt – the new fantasy-themed adventure where Falling Swords and King Wilds could lead to colossal wins of up 1,124x to your bet. Once again featuring the jaw-dropping levels of cinematic visuals that players have come to expect from Elysium Studios games, Sword King takes place to a backdrop of jagged mountains and bright blue skies, with the titular hero standing to the left of the reels ready to join the action.
Evoplay, the award-winning game development studio, offers players seven variants of the Bonus Game in its Asian-inspired release Cat’s Blessing. A 5×3 grid is adorned with a range of Japanese symbols including fans, lanterns, and money trees as well as wilds to help form winning lines. Purple, red and green coins can also appear, which are collected by a corresponding-coloured cat which sits atop the board.
Push Gaming, has launched a Greek Mythology-themed game with a difference, featuring additional reels in Cats of Olympuss. Played across 5×3 reels and 243 paylines, the game delivers a fun take on the ever-popular mythological aesthetic using feline-inspired iterations of Greek Gods. Wilds are key to unlocking instant prizes situated on reels one and five, while scatters are enhanced with x2 value. A minimum of three scatters must land to enter the progressive free spins feature.
Gaming Corps is excited to announce the release of its latest online slot title, Expanding Joker. This slot combines the charm of old-school gaming aesthetics with the thrills of modern gameplay, presenting players with the chance to land big wins and trigger exciting bonus features. The slot utilises a 5×3 game grid, with 243 ways to win on every spin. Players will want to keep their eyes peeled for the Scatter symbol.
Playson, the accomplished digital entertainment supplier, invites players on a thrilling voyage in its latest release 3 Pirate Barrels: Hold and Win. Set against the backdrop of an atmospheric cove, Playson’s top-performing 3 Pots mechanic returns in this swashbuckling sea odyssey boasting huge in-game jackpots, a bountiful Bonus Game, exciting Pirate Coins and an Extra Coin Feature.
Enter a world of mystique and adventure with Pyramid of Spins, the latest addition to Slotland online casino games lineup, where ancient Egyptian treasures await. With a bet range from just $0.50 to $10, players can spin their way through vibrant hieroglyphics and beautifully designed ancient statues, all while hunting for bonuses. Pyramid of Spins features Wilds, a Mystery Bonus, and Free Spins that come with expanding Wilds and Win Multipliers, giving players ample chances to strike gold!
Endorphina, a leading slot provider in the iGaming industry has just confirmed the release of a brand-new online slot – Age of Glory, which is available to play sine September 12th. Age of Glory is Endorphina’s newest adventure slot, featuring 5 reels, 3 rows, and 25 fixed paylines. The game’s plot centers around a long-forgotten world, filled with ancient castles and unexplored grounds waiting to be discovered. In Age of Glory, players are set on a quest to find the lost fortune, collecting crowns, diamonds, gold-encrusted weapons, and antique coins along the way.
Inspired Entertainment, Inc., a leading B2B provider of gaming content, systems and solutions, is pleased to announce its latest launch line-up of mobile and online slots: Jin Tu™ across the US and Ontario, Cops ‘n’ Robbers Bigger Big Money™ and Cherry Power Boost™, across multiple global jurisdictions.
Africa
Play’n GO announces landmark partnership with African operator Betika
Play’n GO, the world’s leading casino entertainment provider, is thrilled to announce a landmark partnership with prominent Kenyan operator Betika. This exciting collaboration marks a significant milestone in expanding Play’n GO’s exceptional gaming content throughout Africa.
As part of this partnership, Play’n GO will integrate its extensive portfolio of premium casino games such as Book of Dead, Rise of Olympus, and Gemix into Betika’s platform, delivering a superior gaming experience to players across the continent. This move highlights Play’n GO’s commitment to bringing world-class entertainment to new markets in what is a first for the world-famous supplier and underscores Betika’s dedication to offering diverse and high-quality gaming options.
Play’n GO is live in over 30 jurisdictions worldwide and boasts a portfolio of over 350 active world-class game titles.
Magnus Olsson, Chief Commercial Officer at Play’n GO said: “We’re very excited to announce this partnership with Betika, which gives us entry into several new markets for Play’n GO. Betika are one of the leading operators across the entire African continent, and joining forces with an operator of their experience and gravitas is a wonderful opportunity for our business. Betika share our goal of a regulated, sustainable industry, and this announcement marks the beginning of what we believe will be a highly successful partnership.”
Betika has established itself as a major player in the Kenyan betting industry, known for its commitment to providing an outstanding user experience and a wide array of betting options. By incorporating Play’n GO’s renowned games, Betika aims to further enhance its offering and attract a diverse range of players.
“Partnering with Play’n GO is a significant step forward for Betika,” said Peter Stagles, Head of Gaming, Betika. “Play’n GO’s impressive lineup of games is the perfect complement to our platform, and we are confident that this collaboration will set new standards in the African gaming industry. We look forward to working together to deliver exceptional entertainment to our players. This collaboration is expected to bring enhanced gaming opportunities and excitement to players across Africa, marking a new chapter in the continent’s rapidly evolving gaming sector”.
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