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SPORTRADAR REPORTS SECOND QUARTER 2024 FINANCIAL AND OPERATING RESULTS
Sportradar Group AG (NASDAQ: SRAD) (“Sportradar” or the “Company”), a leading global sports technology company focused on creating immersive experiences for sports fans and bettors, today announced financial results for its second quarter ended June 30, 2024.
Carsten Koerl, Chief Executive Officer of Sportradar, said: “Our strong second quarter results, including another quarter of record revenues are a testament to the operating momentum we are generating across our business and the clear execution against our strategies to drive outperformance versus the market. We delivered robust growth across our high-value product portfolio and strong client uptake, while continuing to strengthen our business by driving efficiencies and significant cash flow. I am pleased to once again raise our full year guidance as we continue to build long-term shareholder value through strong topline growth, a focus on delivering additional operating leverage and increasing cash flow generation.”
Second Quarter 2024 Financial Highlights
- Revenue was €278.4 million, up 29% year-over-year demonstrating continued momentum in the business.
- Betting Technology & Solutions revenues were €229.1 million, up 30% year-over-year, and Sports Content, Technology & Services revenues were €49.3 million, up 22% year-over-year.
- Delivered strong revenue growth globally with Rest of World up 22% and the U.S. up 59%.
- The current quarter generated a loss of (€1.5 million) compared to a de minimis profit for the same quarter last year.
- Adjusted EBITDA[i] was €48.8 million, up 22% year-over-year.
- Net cash generated from operating activities since the beginning of the year was €152.6 million, up 17% year-over-year.
- The Company’s customer Net Retention Rate[ii] was 117%, demonstrating the strength in cross selling and upselling to clients, and increasing sequentially.
- As of June 30, 2024, the Company had total liquidity of €542.2 million as compared to €483.7 million as of June 30, 2023, benefitting from strong cash flow generation in the first half of 2024.
- During the quarter, the company repurchased approximately 588,000 shares, for a total amount of $6.2 million. As of August 9, 2024, the Company has repurchased approximately 748,000 shares with a total value of $8.0 million.
- The Company further raised its full-year 2024 outlook and now expects to deliver 22% year-over-year growth in revenue and Adjusted EBITDA.
Key Financial and Operating Metrics
|
Q2 | Q2 | Change | Change | ||||
in €’000 (unaudited) | 2024 | 2023 | € | % | ||||
Total Revenue | 278.4 | 216.4 | 62.0 | 29% | ||||
Profit (loss) for the period from continuing operations | (1.5) | 0.0 | (1.6) | n/a | ||||
Profit (loss) for the period from continuing operations as a percentage of revenue | (0.6%) | 0.0% | -57 bps | n/a | ||||
Adjusted EBITDA | 48.8 | 40.1 | 8.7 | 22% | ||||
Adjusted EBITDA Margin1 | 17.5% | 18.5% | -98 bps | n/a | ||||
Net Retention Rate | 117% | 120% | -360 bps | n/a | ||||
Supplemental Revenue Analysis | ||||||||
Revenue Grouping | ||||||||
Betting Technology & Solutions | 229.1 | 176.1 | 53.0 | 30% | ||||
Sports Content, Technology & Services | 49.3 | 40.3 | 9.0 | 22% | ||||
278.4 | 216.4 | 62.0 | 29% | |||||
Revenue Grouping as % of Total Revenue | ||||||||
Betting Technology & Solutions | 82% | 81% | 1% | |||||
Sports Content, Technology & Services | 18% | 19% | -1% | |||||
Geographic | ||||||||
Rest of World | 217.8 | 178.4 | 39.4 | 22% | ||||
United States | 60.6 | 38.0 | 22.6 | 59% | ||||
278.4 | 216.4 | 62.0 | 29% | |||||
Geographic as % of Total Revenue | ||||||||
Rest of World | 78% | 82% | ||||||
United States | 22% | 18% | ||||||
Recent Business Highlights
- Sportradar Managed Trading Services (MTS) customer pipeline had a strong first half of 2024. 46 new customers have signed up for MTS year-to-date, which will bring total customers to over 200 worldwide, expanding coverage in fast growing sports betting territories including Latin America & Africa.
- UEFA and Sportradar extend and expand partnership. The expanded agreement covers all UEFA Club and National team competitions, over 900 high-profile matches, a 33% increase from the previous relationship. The agreement also expands its existing, exclusive betting data rights and Integrity partnership to include non-exclusive right to distribute data to non-betting media.
- Sportradar launches audio and expands digital-out-of-home advertising channels to increase operators’ 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 leading marketing services to podcasts, streaming services, internet radio and over 600,000 digital outdoor screens across move than 100 countries.
- Sportradar launches industry-first social media video ads featuring live sports and betting data. Initially launched across Meta’s social media platforms, Sportradar’s proprietary technology creates and delivers tailored social media video advertisements, which update in real-time to reflect betting market movements, including live odds, as well as casino games and jackpot value, to aid customer retention and drive revenue.
Revenue
Total revenue for the current quarter was €278.4 million, up 29% year-over-year driven by growth across the portfolio, in particular Betting Technology & Solutions.
Betting Technology & Solutions
Betting Technology & Solutions revenues were €229.1 million, up 30% year-over-year primarily driven by:
- Streaming & Betting Engagement, up €26.2 million or 41% year-over-year, and Live Data and Odds up €18.6 million or 27% year-over-year, with both benefitting from existing and new customer uptake of our products and premium pricing, as well as from the strong U.S. market growth.
- Managed Betting Services, up €8.5 million or 21% year-over-year, primarily driven by strong growth in Managed Trading Services due to higher trading margins and increased betting activity from existing and new customers.
- As a percentage of total company revenues, Betting Technology & Solutions represented 82% of total company revenue in the current quarter as compared to 81% in the prior year quarter.
Sports Content, Technology & Solutions
Sports Content, Technology & Solutions revenues were €49.3 million, an increase of 22% year-over-year primarily driven by:
- Marketing and Media Services were €7.7 million, up 28% year-over-year, with strong growth in European and North America ad:s revenue as several sportsbooks launched marketing campaigns.
- Sports Performance was broadly flat year-over-year.
- As a percentage of total company revenues, Sports Content, Technology & Solutions represented 18% of total company revenue in the current quarter as compared to 19% in the prior year quarter.
Costs and Expenses
- Purchased services and licenses were €72.6 million, up €22.0 million or 44% year-over-year. Of the total purchased services and licenses, €28.9 million was expensed sport rights. Excluding expensed sport rights, purchased services were €43.7 million, up €10.5 million or 32% year-over-year driven primarily by the Company’s investments in its product portfolio.
- Personnel expenses were €89.1 million, up €4.7 million or 6% year-over-year and down approximately 700 bps as a percentage of revenue, as we continue to closely manage our resources and focus on delivering operating leverage.
- Other Operating expenses were €22.6 million, up €1.6 million or 8%, down approximately 160 basis points as a percentage of revenue, as we further leveraged our existing infrastructure.
- Total sport rights costs were €95.9 million, up €43.6 million or 83% year-over-year, driven by new rights, in particular our ATP and NBA partnership deals.
Share Repurchase Program
In March of this year the Board of Directors approved a $200 million share repurchase program and commenced purchases during the second quarter. As of August 9, 2024, the Company has repurchased approximately 748,000 shares under the plan for a total of $8.0 million.
Updated 2024 Annual Financial Outlook
Sportradar is further raising its fiscal 2024 outlook for revenue and Adjusted EBITDA as follows:
- Revenue of €1,070 million compared with prior outlook of €1,060 million, up 22% year-over-year and representing a 1-percentage point improvement in our full year growth rate outlook.
- Adjusted EBITDA of at least €204 million compared with prior outlook of €202 million, up 22% and representing a 1-percentage point improvement in our full year growth rate outlook.
- Adjusted EBITDA margin of approximately 19%.
Conference Call and Webcast Information
Sportradar will host a conference call to discuss the second quarter 2024 results today, August 13, 2024, at 8:30 a.m. Eastern Time. Those wishing to participate via webcast should access the earnings call through Sportradar’s Investor Relations website. An archived webcast with the accompanying slides will be available at the Company’s Investor Relations website for one year after the conclusion of the live event.
[i] Non-IFRS measure. See the sections captioned “Non-IFRS Financial Measures and Operating Metric” and “IFRS to Non-IFRS reconciliations” for more details.
[ii] Non-IFRS Operating Metric. See the section captioned “Non-IFRS Financial Measures and Operating Metric” for more details.
The post SPORTRADAR REPORTS SECOND QUARTER 2024 FINANCIAL AND OPERATING RESULTS appeared first on European Gaming Industry News.
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Double win for Kaizen Gaming at the SBC Awards Latinoamérica 2024
Kaizen Gaming, one of the biggest GameTech companies in the world, had an impressive double-win at the SBC Awards Latinoamérica 2024 on the 31st October in Miami, Florida. Awarded ‘Brazilian Market Entrant of the Year’, and ‘Marketing Campaign of the Year’, the two wins follow an impressive year of growth and exposure for Kaizen Gaming, as well as its premium brand Betano, across Latin America and globally.
Betano is rapidly growing its user base and presence in Brazil, serving as the main and title sponsor of Brasileirão Betano and Copa Betano do Brasil. As a founding member of the ANJL and IBJR regulatory bodies, Betano is recognised for its dedication to upholding the highest standards of responsible gaming and integrity. Furthermore, the Betano brand has launched multiple CSR initiatives across the country in partnership with sponsored team, Clube Atlético Mineiro. It also recently launched the “Juntos em Campo” long-term program in cooperation with CBF (Brazilian Football Confederation) to promote initiatives focused on gender equality.
Awarded for the results and creativity of its innovative “Football in America” marketing campaign, Betano successfully introduced Latin America to its “Confia” brand platform by leveraging on its CONMEBOL Copa America 2024 sponsorship. The campaign chimed with the spirit of fans across the continent by celebrating Latin America’s rich football heritage, playfully responding to Kylian Mbappe’s 2022 comments questioning the region’s football quality.
Vangelis Skarkalis, Kaizen Gaming Senior Commercial Director LATAM, said: “Latin America is one of the world’s most dynamic and exciting regions for i-gaming. Being recognised as a leading player in this important market with two wins at the prestigious SBC Awards Latinoamérica is a great honour – especially on the heels of our recent double-win as ‘Operator of the Year’ at both the EGR Operator Awards and SBC Awards. Achieving this success requires an exceptional team of dedicated, ambitious professionals. This award honours everyone’s hard work and commitment to always going above and beyond in delivering the best experiences for our customers not only in Latin America, but worldwide too.”
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Amusnet Teams Up with Betcity.nl for Market Expansion in the Netherlands
Amusnet proudly announces its partnership with the Netherlands operator Betcity.nl, marking a key step in strengthening its presence within the Dutch market. This collaboration combines Amusnet’s dynamic gaming content with Betcity.nl’s established reputation for providing exceptional online experiences to Dutch players. The partnership promises to offer an enriched gaming selection while maintaining the highest compliance standards in the Netherlands’ regulated market.
“Teaming up with Betcity.nl represents an exciting and strategic opportunity for Amusnet to bring forward our portfolio to the Dutch market in collaboration with a trusted local brand. We are motivated to jointly enhance the gaming experience with high-quality content that aligns with local players’ preferences,” said Dimitri De Temmerman, Managing Director Amusnet BNL.
The post Amusnet Teams Up with Betcity.nl for Market Expansion in the Netherlands appeared first on European Gaming Industry News.
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For the first time, BEGE will welcome startups, offering them the opportunity to participate in Gaming StartUp Challenge 6.0. This challenge provides a unique opportunity to meet with key industry figures. The most promising startups will be recognized and granted invaluable access to the experience and insights of industry leaders.
As always, the exhibition begins with the BEGE Awards ceremony, a symbol of recognition for innovation, outstanding achievements, and success across various sectors of the gaming industry, with awards such as “Online Provider of the Year” and “Online Game of the Year.” The awards will be presented on November 26 at an elegant dinner at Black&White club in Sofia’s Grand Hotel Millennium.
A key highlight of the program is the Proximity Zone, providing companies with additional visibility through live-streamed interviews and product presentations with leading global brands and experts.
BEGE is a must-attend event for anyone with an interest in the gaming industry. This year, more than 80 exhibitors and over 6,000 visitors from 70 countries are expected, making it a place where the passion for gaming and innovation meets business opportunities.
The post BEGE celebrates 15 years as Eastern Europe’s premier gaming expo appeared first on European Gaming Industry News.
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