Sportradar has reduced its revenue and adjusted EBITDA forecasts for the 2026. Though it has indicated strong growth in the second quarter.
Sportradar’s full-year revenue is expected to be around €1.52 to €1.53 billion down, in the case that it was estimated earlier to be from €1.56 billion to €1.58 billion and adjusted EBITDA to be between €360-368 million against an earlier forecast of €390-400 million.
Constant currency revenue growth was also lowered to 19-21% from 23-25%. The adjusted EBITDA is now expected to grow by 24-27% instead of 34-37%. In the Q2 the revenue got up by 19% to €377.8 million with adjusted EBITDA rising by 19.5% to €76.3 million. The adjusted EBITDA margin remained almost the same at 20.2% compared to 20.1% a year ago.
Betting Technology and Solutions revenue saw a rise of 21.2% to €313.6 million mainly due to the growing demand for sports data and rights to betting streaming and new customer acquisitions including the revenue from the IMG ARENA rights portfolio. Betting and Gaming Content grew even faster with growth reaching 27% due to the same reasons.
On the contrary, Sports Content Technology and Services revenue gained 8.8% to reach €64.2 million mainly due to Marketing and Media Services, while Sports Performance revenue fell by 13% mainly because of foreign exchange movements.
CEO Carsten Koerl said:
Strong demand for our premium content, data and technology solutions, including increased monetization of our IMG ARENA rights portfolio, drove double-digit growth.
Even though Sportradar’s revenue increased, the company posted a loss of €3.5 million. This contrasts sharply with a profit of €49.1 million achieved by the company in the same quarter of last year.
The company cited the loss primarily due to a €9 million loss from foreign exchange compared to €54 million gain in the same quarter a year ago; the loss was essentially driven by some foreign exchange movements of unrealized currency relating to sports rights that are denominated in dollars.
Sportradar saw its costs related to sports rights growing by 29.7% to €137.8 million, and that was mainly due to the company putting some IMG ARENA assets into operation. Besides, the operating expenses adjusted grew only 41.7% amounting to €34.6 million, becoming higher due to expansion now going in Brazil and legal expenses incurred as a result of entering new markets.