Press Releases

Sportradar Reports Fourth Quarter and Full Year 2023 Results

Published

1 month ago

March 20, 2024

Reading Time: 7 minutes

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 fourth quarter and year ended December 31, 2023.

Carsten Koerl, Chief Executive Officer of Sportradar, said: “2023 was another dynamic and successful year for the Company delivering our 3rd consecutive year of more than 20% revenue growth, improved profitability, and margin expansion. We are pleased with our growth momentum, fueled by our best-in-class content portfolio, innovative product roadmap and technology capabilities. For 2024, we plan to continue to scale our business globally, targeting at least 20% growth in revenue and adjusted EBITDA. Given our market leadership and confidence in the long-term profitability and cashflow outlook for the Company, we have authorized a $200 million share buyback program. We remain laser focused on disciplined execution of our growth strategy and delivering tremendous value for our clients and our shareholders.”

Full Year 2023 and Recent Highlights, Annual Outlook

Revenue for the full year of 2023 increased 20% to €877.6 million compared with the prior year, driven by 20% growth from Rest of World Betting and 30% growth from the U.S. Full year revenue was at the upper end of the Company’s 2023 annual outlook range of €870.0 million to €880.0 million.
Total profit from continuing operations for the full year 2023 was €34.6 million compared with €10.5 million for the prior year. Adjusted EBITDA¹ for the full year of 2023 increased 33% to €166.8 million compared with the prior year and was at the upper end of the Company’s 2023 annual outlook range of €162.0 to €167.0 million.
Total Profit from continuing operations, as a percentage of revenue, for the full year 2023 was 4% compared with 1% for the prior year. Adjusted EBITDA margin¹ for 2023 increased over 177 bps to 19% compared to 2022, primarily driven by strong operating leverage from sport rights and personnel costs.
Cash and cash equivalents grew to €277.2 million as of December 31, 2023, and total liquidity available for use on December 31, 2023, including undrawn credit facilities was €497.2 million.
Authorized a $200 million share buyback program given the confidence in the long-term outlook and ability to generate significant excess capital going forward.
The Company reiterated that it expects to deliver at least 20% year-over-year growth in revenue and Adjusted EBITDA¹ in fiscal 2024. Please see the “Annual Financial Outlook” section of this press release for further details.

Fourth Quarter 2023 Financial Highlights

Revenue in the fourth quarter of 2023 increased 22% to €252.6 million compared with the fourth quarter of 2022 with growth across all segments.
Total Profit from continuing operations for the fourth quarter of 2023 was €23.2 million compared to a loss of €33.3 million for the same quarter last year. The Company’s Adjusted EBITDA¹ for the same period increased 13% to €39.5 million compared with the fourth quarter of 2022, primarily due to strong revenue growth.
Total Profit from continuing operations, as a percentage of revenue, for the fourth quarter of 2023 was 9% compared with (16%) for the same quarter last year. Adjusted EBITDA margin¹ was 16% in the fourth quarter of 2023, compared with 17% in the prior year period.
The Company’s customer Net Retention Rate¹ (NRR) was 111% in the fourth quarter of 2023, demonstrating the Company’s strength in cross selling and upselling to its clients.
As of December 31, 2023, Sportradar had total liquidity of €497.2 million including cash and cash equivalents of €277.2 million and an undrawn credit facility of €220.0 million.

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1} Non-IFRS financial measure or operating metric; see “Non-IFRS Financial Measures and Operating Metric” and accompanying tables for further explanations and reconciliations of non-IFRS measures to IFRS measures.

Key Financial and Operating Metrics
	Q4	Q4	Change	FY	FY	Change
In millions, in Euros €	2023	2022%		2023	2022%
Revenue	252.6	206.3	22%	877.6	730.2	20%
Profit (loss) for the period from continuing operations	23.2	(33.3)	170%	34.6	10.5	230%
Profit (loss) for the period from continuing operations as a percentage of revenue	9%	(16)%	+2,530 bps	4%	1%	+251 bps
Adjusted EBITDA¹	39.5	35.1	13%	166.8	125.8	33%
Adjusted EBITDA margin¹	16%	17%	-136 bps	19%	17%	+177 bps
Net Retention Rate¹	111%	119%	-717 bps	111%	119%	-717 bps

Recent Company Highlights

Sportradar launched a landmark product suite, ATP Service+, as a result of the Company winning the ATP global betting and media data rights. Sportradar and ATP are now working together to drive the commercial growth of tennis and enhance fan engagement.
Sportradar entered into agreements with NASCAR, the South American Football Confederation (CONMEBOL) and Bundesliga, Germany’s premiere soccer league, for exclusive global data rights.
Sportradar extended agreements with BetMGM and Caesars Sportsbook for official NBA data. For the first time, Sportradar will provide these sportsbooks with products and services that leverage NBA optical tracking data as a result of its exclusive partnership with the NBA. This will enable sportsbooks to grow their proposition markets, same-game parlays, as well as in-play betting markets.
Sportradar was selected by the Taiwan Sports Lottery Company, Ltd. to power its Sports Lottery with a customized omnichannel sportsbook and player management solution. As part of a consortium, Sportradar will operate the Sports Lottery through 2033 using the Company’s ORAKO end-to-end sportsbook and player account management system.
Alpha Odds, Sportradar’s automated odds recalculation tool, launched delivering an average profit increase of 10% for clients in 2023.
FanID, which connects rights holders and brands with sports fans launched as the first solution in the market with a data clean room to tackle the demise of third-party cookies.
Sportradar received several industry recognitions, including Best Live Streaming Supplier at EGR B2B Awards 2023, Marketing & Services Provider of the Year at SBC Awards 2023 and Sports Betting Provider of the Year at Sigma Asia Awards 2023. Additionally, Sportradar was included on Business Insider’s “Leaders in AI 100” list.

Segment Information

RoW Betting

Segment revenue in the fourth quarter of 2023 increased by 25% to €132.0 million compared with the fourth quarter of 2022. Growth was driven primarily by increased sales of the Company’s MBS solution, which grew 48% year over-year-as sports outcomes normalized and the contribution from the Taiwanese Sports Lottery Company. Our Live Odds Services also grew 21%.
Segment Adjusted EBITDA¹ in the fourth quarter of 2023 increased by 19% to €55.0 million compared with the fourth quarter of 2022. Segment Adjusted EBITDA margin¹ decreased to 42% compared with the fourth quarter of 2022 mainly due to higher operating costs.

RoW Audiovisual (AV)

Segment revenue in the fourth quarter of 2023 increased by 20% to €50.0 million compared with the fourth quarter of 2022. Revenue growth was driven by the addition of new CONMEBOL and NBA rights and uplift to services to existing and new clients.
Segment Adjusted EBITDA¹ in the fourth quarter of 2023 was €11.2 million. Segment Adjusted EBITDA margin¹ decreased to 22% from 28% compared with the fourth quarter of 2022 mainly due to increased sport right costs.

United States

Segment revenue in the fourth quarter of 2023 increased by 28% to €52.7 million compared with the fourth quarter of 2022. Results were primarily driven by strong market performance, including initial contributions from our NBA deal and the uplift from selling additional services to new and existing clients.
Segment Adjusted EBITDA¹ in the fourth quarter of 2023 was a loss of €1.5 million compared with a profit of €4.3 million in the fourth quarter of 2022 due to the step-up costs of the new NBA deal. Segment Adjusted EBITDA margin¹²was (3%) compared with 11% in the fourth quarter of 2022.

Costs and Expenses

Purchased services and licenses in the fourth quarter of 2023 increased by €9.5 million to €57.8 million compared with the fourth quarter of 2022, reflecting one-time set up costs for the Taiwan Lottery deal and higher investments in external development and product delivery costs. Of the total purchased services and licenses, approximately €9.8 million was expensed sport rights.
Personnel expenses in the fourth quarter of 2023 increased 10% to €88.8 million, compared with the fourth quarter of 2022. The increase was driven by increased headcount and costs related to the Company’s strategic re-alignment initiatives.
Other Operating expenses in the fourth quarter of 2023 decreased 30% to €24.4 million compared with the fourth quarter of 2022, primarily driven by non-recurring litigation costs that occurred in the fourth quarter of 2022.
Total sport rights costs in the fourth quarter of 2023 increased by 51% to €75.1 million compared with the fourth quarter of 2023, primarily a result of the new NBA deal.

The tables below show the information related to each reportable segment for the three-month periods and years ended December 31, 2023, and 2022.

	Three Months Ended December 31, 2023
in €’000	RoW Betting		RoW Betting AV		United States		Total reportable segments		All other segments		Total
Segment revenue	132,007		50,042		52,739		234,788		17,798		252,586
Segment Adjusted EBITDA	55,037		11,156		(1,532	)	64,661		1,957		66,618
Unallocated corporate expenses²											(27,077	)
Adjusted EBITDA¹											39,541
Adjusted EBITDA margin¹	42	%	22	%	(3	%)	28	%	11	%	16	%

	Three Months Ended December 31, 2022
in €’000	RoW Betting		RoW Betting AV		United States		Total reportable segments		All other segments		Total
Segment revenue	105,923		41,768		41,153		188,844		17,444		206,288
Segment Adjusted EBITDA	46,282		11,883		4,333		62,498		(881	)	61,617
Unallocated corporate expenses²											(26,508	)
Adjusted EBITDA¹											35,109
Adjusted EBITDA margin¹	44	%	28	%	11	%	33	%	(5	%)	17	%

	Year Ended December 31, 2023
in €’000	RoW Betting		RoW Betting AV		United States		Total reportable segments		All other segments		Total
Segment revenue	466,823		182,196		165,512		814,531		63,090		877,621
Segment Adjusted EBITDA	209,562		52,211		18,893		280,666		(6,328	)	274,338
Unallocated corporate expenses²											(107,538	)
Adjusted EBITDA¹											166,800
Adjusted EBITDA margin¹	45	%	29	%	11	%	34	%	(10	%)	19	%

	Year Ended December 31, 2022
in €’000	RoW Betting		RoW Betting AV		United States		Total reportable segments		All other segments		Total
Segment revenue	389,092		160,522		127,442		677,056		53,132		730,188
Segment Adjusted EBITDA	182,439		46,494		(4,141	)	224,792		(13,348	)	211,444
Unallocated corporate expenses²											(85,598	)
Adjusted EBITDA¹											125,846
Adjusted EBITDA margin¹	47	%	29	%	(3	%)	33	%	(25	%)	17	%

² Unallocated corporate expenses primarily consist of salaries and wages for management, legal, human resources, finance, office, technology and other costs not allocated to the segments.

Share Buyback Program
The Board of Directors has approved a $200 million share buyback program given the strong business fundamentals and confidence in the long-term profitability and cash flow outlook. The Company anticipates commencing purchases under the program when the next trading window opens, which is following the reporting of its Q1 2024 earnings results.

2024 Annual Financial Outlook

Sportradar is targeting fiscal 2024 outlook for revenue and Adjusted EBITDA¹ as follows:

Revenue of at least €1,050 million, representing year-on-year growth of at least 20%.
Adjusted EBITDA¹ of at least €200 million, representing year-on-year growth of at least 20%.
Adjusted EBITDA margin¹ of approximately 19%.
Guidance assumes a Euro to USD exchange rate of 1.07.

Conference Call and Webcast Information

Sportradar will host a conference call to discuss the fourth quarter 2023 results today, March 20, 2024, at 8:00 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.

Latest News

BOS agrees with KV’s/KO’s advertising assessment of “Trisskrapet” in TV4

Published

20 hours ago

April 26, 2024

Adrienn Sarkany

Reading Time: < 1 minute

The Swedish Trade Association for Online Gambling (BOS) agrees with the Swedish Consumer Agency’s (KV) and the Consumer Ombudsman’s (KO) assessment that the daily scratch card commercial “Trisskrapet” in TV4 is an advertising feature, and thus not an editorial feature. BOS welcomes that KO is now ending that part of the process.

If Svenska Spel does not stop the advertising elements, BOS looks forward to KV following up on its earlier call to Svenska Spel to comply with the provisions on advertising identification and broadcaster declaration in section 9 of the Marketing Act and the information obligation in ch. 15. Section 3 of the Gambling Act with information on the 18-year-old age limit and where to turn in case of gambling problems.

– The Swedish gambling market must be characterized by a high level of consumer protection. A cornerstone of good consumer protection is that people are clear about what constitutes gambling advertising, i.e. that they are not tricked into thinking that an advertising feature would instead be an editorial feature. The daily “Trisskrapet” on TV4 has been anything but clear on that point, and we welcome that KO now finally establishes that the features constitute advertising and nothing else, says Gustaf Hoffstedt.

– Now it remains for Svenska Spel to introduce the mandatory consumer protection labelling of Trisskrapet. Since the company has not shown any excessive eagerness to introduce this voluntarily, KO should ensure that this happens as soon as possible. Every day and every “Trisskrapet” that does not contain the mandatory consumer protection label is another lost day for a safe and secure gambling market, Gustaf Hoffstedt concludes.

Balkans

Expanse Studios Launches in Bulgaria with Inbet

Published

1 day ago

April 26, 2024

Alan Campbell

Reading Time: < 1 minute

Expanse Studios, a leader in online gaming innovation, has secured a Bulgarian iGaming license and is now live on Inbet’s website. This expansion brings Expanse Studios’ popular game offerings including turn-based strategies gamified for iGaming, classic slots, traditional card games and the highly-acclaimed ones like Titan Roulette, Clown Fever Deluxe, Wild Icy Fruits, White Wild Whale and Joker Poker to Bulgarian players.

Diverse Gaming Portfolio Now Available to Bulgarian Players

With the Bulgarian market entry, Expanse Studios introduces a versatile gaming experience to Inbet’s platform. The offerings include a dynamic range of games tailored to diverse player preferences:

Turn-based strategy games: Leveraging gamification, these games transform traditional strategy gameplay into engaging iGaming experiences, suitable for both novice and experienced players.
Classic slots: Players will enjoy a variety of themed slots that combine traditional gameplay with modern graphics and sound.
Traditional card games: A selection of popular card games offer something for every card game enthusiast.
Titan Roulette: This standout feature, known for its immersive experience and innovative design, continues to be a favorite among roulette players.

Commitment to Quality and Compliance

Expanse Studios not only cultivates a diverse gaming library but also adheres to stringent regulatory standards to ensure a secure and fair gaming environment. The acquisition of the Bulgarian iGaming license is a testament to Expanse Studios’ commitment to compliance and excellence in the gaming industry.

The partnership between Expanse Studios and Inbet marks a significant milestone in Expanse Studios’ expansion efforts. By combining Expanse Studios’ innovative gaming solutions with Inbet’s established market presence, both entities are set to offer a superior gaming experience to players in Bulgaria and potentially beyond. As Expanse Studios continues to develop and release new games monthly, Bulgarian players can look forward to a continually evolving and enriching gaming landscape.

Conferences in Europe

CasinoBeats Summit 2024: Providing the Tools to Balance Innovation and Regulation in the Digital Age

Published

1 day ago

April 26, 2024

Alan Campbell

Reading Time: 2 minutes

As the industry seeks optimal methods to responsibly integrate innovative technology, the upcoming CasinoBeats Summit will provide delegates with an exploration of the latest emerging technologies, regulatory frameworks and future trends to ensure a safe yet immersive gaming experience for players.

The Industry and Leadership track will take place across both core days of the CasinoBeats Summit, May 22 to 23 at the InterContinental Malta. Panel sessions will delve into key topics such as global gaming regulations, the evolving digital payment landscape and an in-depth exploration of the world of M&A.

The panel entitled Responsible Gambling in the Digital Age will delve into the latest responsible gambling initiatives influencing the digital landscape. Expert speakers Pedro Romero (RG Consultant and psychologist, University of Gibraltar), Matthew Curtis (Head of Responsible Gaming, L&L), Georgia Wise (Head of Responsible Gaming, PlayNorth), Eduards Jakubovs (Head of Responsible Gaming, Betsson) and panel moderator Maris Catania (Senior SG Consultant, SG: Certified) will analyse the impact of landmark regulatory guidelines such as the 3.4.3 regulation on remote customer interaction and the United Kingdom’s ‘white paper’ as well as discuss the latest distinctions between regulated, grey and black markets.

The Industry Trends and Future Predictions panel will look at the future of the casino sector, examining upcoming industry trends and their potential impact. Industry leaders Itai Zak (Executive Director, Digicode, and former/ex-Chief Executive Officer, SBTech), Matthew D’Emanuele (Chief Executive Officer, Yolo Entertainment), Alexander Martin (Chief Executive Officer, SKS365), Inesa Glazaite (Chief Commercial Officer, iGaming Platform), Dmitry Starostenkov (Chief Executive Officer, EvenBet) alongside panel moderator Martyn Elliott (Project Director, SBC Media) will offer insights into key emerging markets, innovative game formats and strategies to effectively cater to evolving player needs.

Commencing the second day is the panel entitled The Evolving Landscape of Gaming Sector Payments, which will explore the current state of the industry’s payment sector. Expert speakers Sean Spiteri (Head of Payment Solutions, PressEnter), Enrico Giancaterina (Managing Director, Funtech) and Ian Perrygrove (Chief Risk Officer, Kwiff) will discuss the current payment innovations driven by the casino sector, analyse the future of digital payment methods and the potential risks of such rapid innovations.

The Navigating the Future: Global Gaming Regulations panel will explore strategies to effectively address the challenges posed by current and future global regulations. Regulator representatives Aideen Shortt, (Advisor to the Minister, Curacao), Andrew Lyman (Gambling Commissioner and Executive Director, Gibraltar), Andrew Rhodes (Chief Executive, Gambling Commission) and Brandon Debattista (Deputy Chief Regulatory Officer, Malta Gaming Authority) will provide insights into their respective markets whilst assessing the possibility of a unified global regulatory standard and the importance of cross-market collaboration.

Additionally, track attendees will have the opportunity to garner insights into the world of acquisition and investment during an exclusive IMGL-led masterclass, Acquisition Strategy: Gearing up for Investment, which is set to take place on Thursday, May 23, the second core day of the event.

For groups of three or more, you can purchase the Group Pass Ticket and gain access to all three days of the CasinoBeats Summit for the discounted price of €400 per person (a saving of €200 per ticket). Additionally, operators and affiliates can apply for a free pass to the event.

You can keep up-to-date with the latest news, speakers and exhibitor additions and conference content by subscribing to the bi-weekly CasinoBeats Summit LinkedIn newsletter.