Sportradar sales growth impacted by rude FX effects

Continuation of a strong performance in the US and activation of several prominent sports partnerships drove continued revenue growth for Sportradar in Q2, but the group’s profit has taken a hit.

The Swiss sportstech closed the first six months of the year with revenue of €424m, a 19% increase on corresponding 2022 results of €345m. Although profit fell by 77% from €31m in H1 2022 to €6.9m, adjusted EBITDA remained in good standing, rising by 32% to €132.7m (€89.4m).

Meanwhile Q2 2023 revenue rose 22% to €216m (€172m) compared to the corresponding period in 2023, and EBITDA increased 46% to €40m (€28m) – with an improved margin of 19% (16%).

However, the firm said it has been negatively impacted by foreign exchange rates in the quarter, leading to Q2 profit from continuing operations to be almost completely wiped out as it also absorbed an €8.0m one-time loss on disposal of an equity investment.

Despite this, Sportradar’s optimism for the remainder of the year remains high. Projections for the close of 2023 include a 24-26% increase in revenue to between €902m-€920m (2022: €730m), adjusted EBITDA growth of 25-33% to between €157m-€167m (€126m) and a margin of between 17% to 18% (17%).

Carsten Koerl, Sportradar CEO, said: “We are very proud of our strong performance during the first half of 2023 and remain on track to achieve the highest annual revenue in the Company’s history. 

“We hold a pivotal position in the global sports ecosystem and believe our talent, technology and diverse product offering positions us for strong future growth as we continue to execute against our strategic initiatives.”

Breaking down group segments, Rest of World (RoW) betting revenue rose 18% from €182m to €223m for H1 with EBITDA up 11% to €98m (€89m). Q2 revenue for the segment also rose 20% to €1114m (€95m) with EBITDA up 18% to €51m (€43m) with the margin remaining consistent year-on-year at 45%.

This was attributed by the group to increased sales for its value-add offerings such as MBS and its LIve Odd and Live Data products, which grew 25% and 19% respectively.

​​RoW Audiovisual (AV) unit experienced a 25% revenue growth in Q2 2023 to €49m , spurred by a new CONMEBOL deal, and saw a 26% increase in Adjusted EBITDA with a 33% margin. The segment closed H1 with revenue of €86m (€47m) and EBITDA of €22m (€16m), a growth rate of 45% and 27%.

​​In the US, Sportradar cited that it had achieved a 105% increase in the ‘collective growth’ of its betting, gaming and AV products – helping its US business achieve 31% revenue increase to €38m in Q2 (€29m).

Stateside growth was boosted by an expansion of the firm’s agreement with Caesars Entertainment and its continued standing as the official supplier of betting data from the NBA, MLB and NHL.

“The Company’s recent signings demonstrate its commitment to delivering engaging experiences for its clients while effectively monetizing its league partnerships through the value-added creation of innovative products and solutions,” Sportradar informed its NYSE investors.