Sportradar Group AG is a leading global sports technology company focused on creating immersive experiences for sports fans and bettors. The platform announced this Wednesday (14) the financial results for the second quarter ending on June 30, 2024.
Sportradar highlights in the second quarter of 2024
- Revenue was €278.4 million, a 29% increase on the previous year, demonstrating the continued momentum of the business.
- Technology and Betting Solutions revenues were €229.1 million, an increase of 30% year-on-year, and Sports Content, Technology and Services revenues were €49.3 million, an increase of 22% compared to the previous year.
- It delivered strong revenue growth globally, with the rest of the world growing 22% and the US growing 59%.
- The current quarter generated a loss of (€1.5 million)
- Adjusted EBITDA was €48.8 million, an increase of 22% compared to the previous year.
- Net cash generated by operating activities since the beginning of the year was €152.6 million, an increase of 17% compared to the previous year.
- The company’s net customer retention rate was 117%, demonstrating the power of cross-selling and upselling to customers, and increasing sequentially.
- As of June 30, 2024, the company had total liquidity of €542.2 million, compared to €483.7 million as of June 30, 2023, benefiting from strong cash flow generation in the first half of 2024.
- During the quarter, the company repurchased approximately 588,000 shares for a total value of $6.2 million. As of August 9, 2024, the company had repurchased approximately 748,000 shares with a total value of $8.0 million.
Recent Business Highlights
- Sportradar Managed Trading Services (MTS) has had a strong first half of 2024. 46 new customers have signed up to MTS to date, which will bring total customers to over 200 worldwide, expanding coverage in betting territories fast-growing sports activities, including Latin America and Africa.
- UEFA and Sportradar extend and expand the partnership. The expanded agreement covers all UEFA club and national team competitions, over 900 top-level matches, a 33% increase on the previous relationship. The agreement also expands the existing exclusive betting data rights and integrity partnership to include the non-exclusive right to distribute data to non-betting media.
- Sportradar launches audio and expands out-of-home digital advertising channels to increase operator 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 core marketing services to podcasts, streaming services, internet radio and over 600,000 outdoor digital screens in more than 100 countries.
- Sportradar launches industry’s first social media video ads featuring live sports and betting data. Initially launched on Meta’s social media platforms, Sportradar’s proprietary technology creates and delivers personalized video ads for social media, which update in real time.
Revenue
- Total revenue for the current quarter was €278.4 million, an increase of 29% year-on-year, driven by growth across the portfolio, in particular in Technology and Betting Solutions.
Sportradar has technology and betting solutions
Betting technology and solutions revenue was €229.1 million, an increase of 30% compared to the previous year, driven mainly by:
- Streaming & Betting Engagement, with an increase of €26.2 million or 41% year-on-year, and Live Data and Odds, with an increase of €18.6 million or 27% year-on-year, with both benefiting from the acceptance of our products and premium prices by new and existing customers, as well as the strong growth of the US market.
- Managed Betting Services, up €8.5 million or 21% year-on-year, driven primarily by strong growth in Managed Trading Services due to higher trading margins and increased betting activity from new and existing.
- As a percentage of the company’s total revenue, betting technology and solutions represented 82% of the company’s total revenue in the current quarter, compared to 81% in the year-ago quarter.
Updated annual financial outlook for 2024
Sportradar is further raising its fiscal year 2024 outlook for revenue and EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) as follows:
- Revenue of €1,070 million compared to the previous outlook of €1,060 million, an increase of 22% year-on-year and representing a 1% improvement in the full-year growth rate outlook.
- Adjusted EBITDA of at least €204 million, compared to the previous outlook of €202 million, an increase of 22%, representing a 1% improvement in our full-year growth rate outlook.
- Adjusted EBITDA margin of approximately 19%.