Sportradar Q2 revenue up as FX movements hit bottom line

Sportradar reported €216.4m in revenue during Q2 2023, up 22% from 2022. The business reported growth across all of its segments during the period, expansion in the company’s largest sector, with Rest of the World (RoW) Betting driving the majority of the of the overall growth.

“We are very proud of our strong performance during the first half of 2023 and remain on track to achieve the highest annual revenue in the company’s history,” said CEO Carsten Koerl.

“We hold a pivotal position in the global sports ecosystem and believe our talent, technology and diverse product offering positions us for strong future growth as we continue to execute against our strategic initiatives.”

Increased sales push RoW Betting growth

Sportradar said revenue for its Rest of the World (RoW) Betting segment – spanning all non-US operations – increased 20% in Q2 2023 to €114.1m.

The business highlighted the impact of increased sales of its higher value-add offerings including its managed betting services, which rose 25% to €41.1m for the quarter. Additionally, its Live Odds and Live Data products revenue increased 19% year-on-year.

The segment’s adjusted EBITDA also grew 18% to €51.0m compared to the same period the previous year, with the EBITDA margin remaining static at 45%.

CONMEBOL deal drives AV revenue

Sportradar’s RoW Audovisual segment reported €49.6m million in revenue for the quarter –, a 25% increase. The provider pointed to the business’ new deal with the continental governing body of South American football CONMEBOL as driving the rise.  

This revenue resulted in an adjusted EBITDA increasing 26% to €16.4m compared to the same period in 2022, with a 33% margin.

US EBITDA positive in Q2 2023

Meanwhile the company’s smallest business area, the United States, experienced 31% growth to €38.0m in Q2 2023. Sportradar said increases in revenue across the board in betting, gaming and audiovisual products drove the increases.

This pushed EBITDA to €5.4m, compared to the EBITDA loss of €5.5m reported the previous year. The business said this indicated strong improvement in its operational leverage in the US business model. Margins subsequently improved to 14%, compared to 19% in 2022.

Sportradar H1 results

On a six-month basis, Sportradar announced revenue of €424.0m, 23% up from last year’s €345.1m. Due to factors mentioned above, profit fell to €6.9m from the €31.0m achieved the previous year.

On revenue, the business’ adjusted EBITDA stood at €76.8m for the half, a 42% increase.

As of 30 June 2023, Sportradar has total liquidity of €484m including cash and cash equivalents of €264m.   

Personnel costs shoot up  

The provider reported a 31% increase in personnel expenses to €84.4m. However, beyond this many of the business’ costs remained largely static.

Sportradar recorded €44.6 in purchased services and licences expenses, largely similar from the €43.2m the business spent the previous year.

The business’ depreciation and other expenses also saw little change, at €52.1m and €20.9m respectively.

Other costs

The business issued €11.1m in share-based compensation for the three-month period, up from €8.8m the previous year.

However, Sportradar did not note any litigation costs on the books for Q2 2023 compared to the previous year. The supplier had launched a betting data suit against competitor Genius Sports, which was resolved in October 2022.

The business also reported €7.1m in finance costs and paid €1.6m in income tax.

Overall, the company reported a pre-tax income of €1.6m.

Foreign exchange movements eat into profits

Despite previously mentioned revenue growth, the business saw its net profit decline 99.7% from €22.8m to €76,000.

While the company pointed to a net negative impact from foreign exchange currency rates, it also said it was affected by a €8.0m one-time loss on an equity investment.

Sportradar previously received an €18.4m boost from FX movements in Q2 2022, compared to a €1.2m loss this year.

The supplier reported adjusted earnings before interest, taxes, depreciation or amortisation (EBITDA) of €40.1m, representing a 46% rise.