SBC News Sportradar maintains all-round tailwinds as 2024 breaks dawn

Sportradar maintains all-round tailwinds as 2024 breaks dawn

Sportradar Group AG has released its latest financial report for the quarter ending 31 March 2024. The Swiss sportstech group has reported revenue growth across its core business segments.

Updating investors, Sportradar recorded quarterly revenue of €265.9m, which was up 28% year-on-year from €207.6m in Q1 2023. This was achieved thanks to a strong performance across its broad product portfolio. 

In accordance with the recent changes in segment reporting implemented by Sportradar to drive growth and streamline the delivery of its operational performance, revenue updates were broken down into two segments – separately covering the company’s Betting Technology and Solutions and Sports Content, Technology and Solutions arms. 

Based on product grouping, Betting Technology and Solutions revenue rose by 35% YoY to reach a Q1 revenue of €218.8m. This increase was primarily driven by the Streaming and Betting Engagement, Live Data and Odds, and Managed Betting Services segments – growing to €26m (46% YoY), €19m (29%), and €12m (32%) respectively. 

The whole Betting Technology and Solutions arm represented 82% of total company revenue for the quarter compared to the 78% in Q1 2023. 

Revenues from the Sports Content, Technology and Solutions division were up 5% YoY, amounting to €47.1m. A key driver for that was the Marketing and Media Services branch which saw a 6% YoY increase thanks to increased sales throughout the quarter. 

However, the €47.1m represented only 18% of the total company revenue for Q1 2024 compared to the 22% that the Sports Content, Technology and Solutions division had in Q1 2023. 

Looking at the global map, Sportradar saw quarterly revenues of €65.5m in the US, up 65% YoY from the previous year. Rest of World revenues stood at €200.4m, up 19% when pitted against Q1 2023. 

Adjusted EBITDA (non-IFRS) in Q1 2024 grew by 29% YoY to reach €47.2m, which was attributed to strong revenue growth and operation efficiencies. 

The company saw a significant growth of investment into sport rights over the first quarter (€90.9m), which was 78% more from the previous year as a result of several high-level partnership deals, in particular with the ATP and the NBA. 

Reflecting the company’s global growth ambitions, the total expense on purchasing services and licences over the first quarter of 2024 was €65.2m – up 35% YoY. 

Detailing a focus on improved operating leverage Sportradar also declared a 3% YoY rise in personnel expenses (€79.6m). 

Of note to investors, Sportradar initiated a $200m share repurchase programme approved by its Board of Directors in March, and expects to commence purchases as soon as the next trading window opens. 

The company has also adjusted its fiscal 2024 outlook, with yearly revenue expectations now standing at €1.060m compared to the previous outlook of €1.050m. 

Adjusted EBITDA (non-IFRS) forecasts are for at least €202m compared to the previous €200m, with a margin of approximately 19%. 

SBC News Sportradar maintains all-round tailwinds as 2024 breaks dawn
Carsten Koerl

Commenting on the results, Sportradar CEO Carsten Koerl said: “Fiscal 2024 is off to a great start, building on the strong momentum and progress we made last year. This quarter, we saw broad-based strength across our product portfolio including strong client adoption of our ATP and NBA product offerings. 

“In light of our strong business fundamentals, we are raising our full-year outlook and are commencing purchases under our share repurchase program. I would also like to welcome to the leadership team Craig Felenstein as our Chief Financial Officer and Behshad Behzadi as our Chief Technology Officer and Chief AI Officer.”

Behshad Behzadi joined Sportradar at the start of May to create an AI-facing strategy for the company going forward.

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