Sportradar Reports Solid Q2 Growth Amid Rising Costs
Sportradar reported a 22% increase in EBITDA and a 30% growth in revenue within its betting technology sector for the second quarter of 2024. The company also faced financial challenges, including a rise in sports rights costs, which contributed to a net loss during the period.
Growth in Betting Technology and New Client Onboarding
During the second quarter, Sportradar successfully onboarded 46 new betting clients to its main trading platform. This expansion contributed to a significant €9 billion in turnover from April to June.
The company’s revenue in the betting technology and solutions sector saw a notable 30% increase, reaching €229.1 million. Additionally, the division responsible for sports content, technology, and services reported a 22% growth in sales, amounting to €49.3 million.
Impressively, 82% of Sportradar’s total income came from its betting technology operations, highlighting the sector’s crucial role in the company’s overall performance.
AI Innovations and Leadership Changes
In May, Sportradar made a strategic move to enhance its technological capabilities by appointing Behshad Behzadi, the former VP of Engineering at Google, as its new Chief Technology Officer and Chief AI Officer. This appointment is part of Sportradar’s broader strategy to advance its AI initiatives, focusing on developing personalized experiences for sports fans.
CEO Carsten Koerl emphasized the importance of generative AI in creating these multi-modal experiences, which are expected to offer fans a more tailored and immersive way to engage with sports content.
“We see this as the next phase in the future of sports consumption,” Koerl stated, signaling Sportradar’s commitment to leveraging AI-driven advancements to revolutionize how fans interact with both ongoing and historical games.
Financial Challenges
Despite the positive growth in revenue and client acquisition, Sportradar faced some financial challenges in Q2. The company reported a loss of €1.5 million, a stark contrast to the breakeven results from the previous year.
CFO Craig Felenstein attributed this loss to an 83% increase in sports rights costs, which surged to €95.9 million. This rise was primarily due to Sportradar’s recent data and streaming agreement with the Association of Tennis Professionals (ATP), finalized in December 2023.
Felenstein reassured stakeholders that sports rights costs are unlikely to rise significantly in the near future, stating, “We have the main pillars of our portfolio and ATP was a major step up for us. We don’t see anything material in the next couple of years on this.”
