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Sportradar revenue nears the upper limit of its FY23 guidance due to US growth

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Sportradar’s revenue for its fiscal year 2023 was EUR877.6m ($951.5m), which is near the top of the range it had set. This growth came from the US.

Sportradar’s 2023 annual forecast initially set a target revenue of EUR870m – EUR880m. The US saw a 30.0% increase in revenue and Sportradar’s Rest of World category had a 20.0% rise.

Sportradar’s significant revenue growth has led to an increase in profit for the continuing business of EUR34.6m. This is up by 229.5% compared with 2022, when Sportradar had a profit total of EUR10.5m. Earnings before interest, taxes, depreciation, and amortization (EBITDA), adjusted for inflation, increased 32.6% to EUR166.8m. This is close to Sportradar’s forecast range of EUR162m to EUR167m.

Sportradar attributes this increase to the strong operational leverage of sports rights and staff costs.

Sportradar, as of 31 December 20,23, had EUR497.2m available in liquidity. This includes credit lines that were not yet drawn down. Cash equivalents and other liquid assets also amounted to EUR277.2m.

Sportradar has a positive outlook, which led to them authorising a EUR200m share-buyback program.

Carsten Koerl is the chief executive of Sportradar. He praised his company’s achievements in 2013.

He said that 2023 marked the third year in a row where revenue grew by more than 20%, profitability improved, and margins expanded. We are happy with the growth momentum we have achieved, fueled by our innovative product roadmap, our content that is best in class, and our technology.

Sportradar’s FY2023 revenues were up, but they couldn’t match the success of FY2022, when the company exceeded its revenue outlook for the year, EUR718m – EUR723m, by EUR730.2m.

Sportradar’s Q4 profits a good end for 2023

Sportradar’s revenue and adjusted Ebitda grew in the fourth quarter

Sportradar was able to achieve its guidance for FY2023 in terms of revenue and adjusted EBITDA in part due to an impressive Q4 in which the company recorded double-digit increases in these financial measures as well as profitability when compared with the same quarter in the previous year.

The growth in all segments boosted revenue by 22.4%. The adjusted EBITDA grew by 12.5%, to EUR39.5m.

Sportradar’s success has allowed it to achieve a profit in continuing operations of EUR23.2m. This is a substantial improvement over the EUR33.3m loss recorded during the same period last year. It also represents a huge increase from Q3’s unimpressive profit of EUR4.6m.

Sportradar’s adjusted EBITDA margin fell from 17% in 2017 to 16% by 2023. However, the company stated that its net customer retention rate in Q4 of 111% showed its ability to cross-sell and upsell its clients.

US Investment leads to Growth

Sportradar’s results for the full year 2022 were largely influenced by its success in the US, with revenue growing 78%.

Sportradar is well-positioned to grow in the US, even if it can’t match this growth rate in 2023.

Sportradar attributed the strong performance to the sales of new services and the growing relationship between the National Basketball Association and the company. Sportradar signed a contract with BetMGM in October to provide the operator NBA tracking data.

Sportradar, which announced its NBA partnership earlier this week by adding its sports betting capabilities directly to the NBA League Pass streaming service.

Sportradar lost EUR1.5m in Q4 despite the US revenue growth. In the previous quarter, Sportradar had made EUR4.3m in profit. This investment will allow the company to be profitable in the US within the next few years.

The rest of the world is also doing well

Sportradar’s rest of the world segment also experienced growth in Q4 for its audiovisual and betting segments.

The company’s revenue from the rest of the world increased by 24.6% on an annual basis to EUR132m. This growth was driven by 48.0% more sales for Sportradar’s Managed Betting Services (MBS), as well as by 21.0% in its live odds sector. The adjusted EBITDA for rest of world betting rose 19%, to EUR55m.

Sportradar attributes the increase in revenue for rest of the world audiovisual to an addition of NBA rights and South American Football Confederation’s (CONMEBOL). EBITDA for the division was EUR11.2m in Q4 2020, down from EUR11.9m.

The cost and expense breakdown included EUR57.8m of purchased licenses and services, which consisted primarily of the set-up fees resulting from the deal in October with Taiwan Lottery and other rights agreements. Personnel expenses totaled EUR88.8m, while sports rights costs and operating expenses totaled EUR75.1m each.

Sportradar has a busy year in 2023

sportradar has expanded its relationship with the nba

Sportradar expanded its relationship with NBA this week, following a year in 2023 when the company signed a series of agreements to expand its market presence.

Sportradar, hoping to increase its US business, signed a 4-year extension of its partnership for media data rights with the National Association for Stock Car Auto Racing in August. It also renewed its contract with Caesars Sportsbook for official betting data.

Sportradar signed a deal in December with Tennis Data Innovations to provide global streaming and data rights. Tennis Data Innovations is a joint-venture vehicle of the Association of Tennis Professionals and ATP Media.

A revenue growth target of 20% by 2024 and an adjusted EBITDA goal of $20 million

sportradar is looking to achieve 20% growth in revenue and adjusted ebitda in 2024

Sportradar, after a successful 2023 financial year, has set a target of achieving yearly growth rates in revenue and EBITDA adjusted for 2024.

This would bring revenue to EUR1.05bn and 20.0% increase in EBITDA to EUR200m. The guidance assumes a Euro-to-US$ rate of 1.07.

Sportradar also targets a stable EBITDA adjusted margin of 19,0%. This is the same for the entire FY2023, but it’s up from 16.0% in Q4.

Koerl added, “We plan to continue scaling our business worldwide, and we aim to achieve at least a 20% increase in adjusted EBITDA.” We remain focused on executing our growth strategy with discipline and creating value for both our clients and shareholders.

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