Date: 16.05.2024

by Adam Dworak

Sportradar Sees Strong Revenue Growth Amid Rising Costs in Q1 2024

Sportradar posted Q1 revenues of €265.9 million, up 28.1% from the €207.6 million generated in the same quarter last year. Meanwhile, adjusted EBITDA reached €47.2 million, a 28.6% increase from the €36.7 million accumulated in Q1 2023.

Sportradar attributed the adjusted EBITDA increase to revenue growth and enhanced operating efficiency, both of which offset increasing sports rights costs.

Broad-Based Strength Across Product Portfolio

Sportradar pointed to “broad-based strength” across its product portfolio as the key driver of its revenue growth. Revenues from its betting technology and solutions sector surged by 34.6% to €218.8 million, accounting for 82.3% of Sportradar’s total revenue. The sports content, technology, and solutions segment, making up the remaining 17.7%, also saw a revenue increase of 4.7%, reaching €47.1 million.

The company’s total liquidity rose by 7.6% to €494.6 million, compared to €459.6 million at the end of Q1 2023.

Net Loss Despite Revenue Gains

Despite the impressive revenue and EBITDA growth, Sportradar posted a Q1 net loss, a significant shift from the €6.8 million profit generated in the same quarter last year. However, Sportradar noted that the loss as a percentage of revenue for Q1 was negligible.

Sportradar’s CEO Carsten Koerl remains optimistic about the company’s performance, highlighting that the adjusted EBITDA margin remained stable at 18%. “Fiscal 2024 is off to a great start, building on the strong momentum and progress we made last year,” Koerl said.

“This quarter, we saw broad-based strength across our product portfolio including strong client adoption of our ATP and NBA product offerings.”

Rising Costs Impact Profitability

Sportradar’s net loss was primarily due to significant increases in costs. Purchases of services and licenses amounted to €65.2 million, up 34.7% from €48.4 million in Q1 2023. Finance costs more than tripled to €18.8 million, while foreign currency losses increased 291.9% to €14.5 million.

Personnel expenses remained largely flat at €79.6 million, compared to €77.5 million in Q1 2023. However, depreciation and amortization costs totaled €76.9 million, a 61.6% increase from €47.6 million in the same quarter last year. Sports rights costs were up by €39.8 million or 78% year-on-year, reaching €90.9 million, driven by partnership deals with the Association of Tennis Professionals (ATP) and the National Basketball Association (NBA). The company stated these increased sports rights costs were in line with 2024 expectations.

Sector Revenue Increases

Despite the Q1 loss, Sportradar reported encouraging revenue increases across its sectors, thanks to its sports partnerships. For instance, the data and streaming rights deal with Tennis Data Innovations, a joint venture between the ATP and ATP Media, contributed to growth in its betting technology and solutions sector. Sportradar also highlighted its partnership with BetMGM, which allows the operator to access NBA tracking data.

Sportradar attributed a 46% year-on-year growth in streaming and betting engagement to strong demand for its ATP content. Additionally, live data and odds were up 29% in Q1, driven by premium pricing for the NBA and new ATP product offerings.

In the sports content, technology, and solutions sector, Sportradar saw a 6% revenue rise in its marketing and media services, which helped offset flat growth in sports performance.

Strengthening Presence in the US Market

A key highlight in Sportradar’s Q1 was the increasing strength of its performance in the US market. Revenue in the US reached €60.5 million, a 65% increase from €39.7 million in the same quarter last year. Meanwhile, revenue from the rest of the world markets reached €200.4 million, up 19.4% year-on-year.

The substantial growth in US revenue means the market now accounts for 25% of Sportradar’s total revenue, up from 19% in Q1 2023.

Raising 2024 Outlook Despite Net Loss

Although it posted a Q1 net loss, Sportradar has raised its 2024 annual financial outlook. The previous guidance set a target of €1.05 billion in 2024 revenue, but following the revenue increases in Q1, the objective has been raised to €1.06 billion, equating to 21% year-on-year growth.

Additionally, Sportradar is now eyeing a 2024 adjusted EBITDA of €202 million, up from the previous €200 million target. This would again represent a 21% year-on-year rise. The company has opted not to raise its adjusted EBITDA margin target, maintaining its approximate 19% objective.

In March, Sportradar’s board of directors approved a share repurchase program worth €200 million. Koerl says the company is in the process of beginning that initiative. “In light of our strong business fundamentals, we are raising our full-year outlook and are commencing purchases under our share repurchase program,” Koerl explained.

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