Sportradar posts US$781.3m in revenue for 2022
Sportradar has revealed revenue for the full year of 2022 increased 30 per cent to €730.2m (US$781.3m) compared with the prior year.
Press release.- Sportradar Group AG today announced financial results for its fourth quarter and full year ended December 31, 2022.
Revenue for the full year of 2022 increased 30 per cent to €730.2m (US$781.3m) compared with the prior year, driven by 26 per cent growth from the Rest of World Betting and 78 per cent growth from the U.S.
Full-year revenue exceeded the company’s 2022 annual outlook range of €718.0m to €723.0m.
In 2022, the company strengthened its core betting business by increasing its wallet share with customers by selling its higher-value products.
Managed Trading Services (MTS) turnover volume grew 84 per cent to €19.4bn, the Company’s digital advertising product ad:s’ revenue grew 69 per cent, and U.S. betting revenue grew 101 per cent, extending its leadership position in the U.S. Furthermore, Sportradar continues to invest in advanced technologies such as trading algorithms, artificial intelligence and computer vision technology.
Total profit for the full year 2022 was €10.5m compared with €12.8m for the prior year. Adjusted EBITDA for the full year of 2022 increased 23 per cent to €125.8m (US$134.6m) compared with the prior year and was within the company’s 2022 annual outlook range of €124.0 to €127.0m.
The adjusted EBITDA margin for 2022 was 17 per cent compared with 18 per cent for 2021. Adjusted EBITDA margin for the second half of 2022 improved by 400 bps over the second half of the year 2021.
Cash and cash equivalents totalled €243.8m as of December 31, 2022, and total liquidity available for use on December 31, 2022, including undrawn credit facilities was €463.8m. The Company repaid €420.0m of its outstanding term loan debt eliminating the term loan in its entirety.
Sportradar signed new and extended multi-year agreements with FanDuel for official NBA data, NASCAR, Turkish Basketball Federation, Australian premier cricket competitions, and Tennis Data Innovations, in addition to launching integrity-focused programs such as Athlete Wellbeing to support athletes’ mental health.
The company also acquired Vaix, a pioneer in developing AI solutions for the iGaming industry.
The company is providing an annual outlook for the full year 2023 for revenue and Adjusted EBITDA. Revenue is expected to be in the range of €902.0m to €920.0m and Adjusted EBITDA is expected to be in the range of €157.0m to €167.0m.
Fourth Quarter 2022 Highlights
- Revenue in the fourth quarter of 2022 increased 35 per cent to €206.3 million (US$220.7m) compared with the fourth quarter of 2021.
- The RoW Betting segment, accounting for 51 per cent of total revenue, grew 29 per cent to €105.9m (US$113.3m), driven by a strong performance from Managed Betting Services (MBS). MTS trading volume grew 75 per cent, primarily driven by strong FIFA World Cup performance.
- U.S. segment revenue grew 77 per cent to €41.2m (US$44.0m) compared with the fourth quarter of 2021, driven by strong market growth and positive adoption of in-play betting. The U.S. segment generated a positive Adjusted EBITDA for the second consecutive quarter with an Adjusted EBITDA margin of 11 per cent.
- The Company’s Adjusted EBITDA in the fourth quarter of 2022 increased 64 per cent to €35.1m (US$37.6m) compared with the fourth quarter of 2021 as a result of strong revenue growth despite increased investment for growth.
- Adjusted EBITDA margin was 17 per cent in the fourth quarter of 2022, an increase of 300 bps compared with the prior year period.
- Adjusted Free Cash Flow in the fourth quarter of 2022 was (€43.6)m, compared with (€22.5)m for the prior year period, as a result of unfavourable impact from foreign currency exchange, planned pre-payments of sports league rights, taxes as well as restructuring costs. The resulting Cash Flow Conversion was (124 per cent) in the quarter.
- During the quarter, the Company prepaid the remaining €220.0m of its outstanding debt and has no more outstanding debt.
Carsten Koerl, chief executive officer of Sportradar said: “I am very pleased with our strong results driven by exceptional execution this past year. We saw excellent performance across all of our key performance metrics despite challenging macroeconomic conditions including a second consecutive quarter of positive Adjusted EBITDA in the U.S.
“Our continued long-term partnerships with leading global sports bodies, and innovation across new technologies such as artificial intelligence and computer vision and as important, a team passionate about delivering solutions to our clients, make us very excited about our growth in 2023 and beyond.”
Ulrich Harmuth, interim chief financial officer added: “Our fourth quarter financial results illustrate the momentum we’ve built throughout 2022. We demonstrated operational leverage in our business model, despite making significant investments in our products and technology, streamlined our organization to be more customer-centric, and strengthened our balance sheet by repaying our debt.
“Our 2023 guidance of revenue growth and margin expansion reflects the investments we have made to date and the growing global sports market opportunity.”